SAUDI ARABIA - Finance
Governor, Public Pension Authority (PPA)
HE Mohammed bin Talal Al-Nahas served as General Manager for Branches at Al-lnma Bank and Regional Manager of Central Region Branches at SAMBA Financial Group. He serves as Member of Board of Directors of the International Company for Water and Power Projects (ACWA Power). He has been Non-Executive Non-Independent Director at Saudi Telecom Company since February 2, 2017. He has been Director of Saudi Basic Industries Corporation since September 26, 2016. He serves as Chairman of the Auditing and Risk Committee at AI-Raidah Investment Company of the Public Pension Agency. He is the Governor of the Public Pension Agency. He holds Bachelor of Science Accounting degree from the King Saud University and Executive Program Certificate from the University of Michigan Business School, Michigan, US.
PPA participates by aligning itself with the different strategic objectives, targets, outcome-oriented initiatives, and commitments achievable through public-private partnership (PPP) efforts currently underway. PPA will take advantage of deal access and priority privileges to participate in the different investment opportunities arising from the privatization efforts of previously government-owned assets and services. To further enhance our ability and readiness to take advantage of new opportunities, PPA has also invested in strengthening its internal institutional and human capabilities as well as studying new best international models and practices for pension funds’ investments.
Undoubtedly, the recent economic environment has impacted the performance of our pension portfolio; however, PPA’s investments are well diversified across asset classes globally, thereby offsetting to some extent the impact of underperformance of our local market on the overall portfolio. This strategy will continue in exploring new investment opportunities coupled with developing a stronger risk management function.
PPA has already demonstrated its support of initiative in this sector through investment in ACWA Power, a unit of ACWA Holding Company, and we will remain open to investment opportunities that emerge in the renewable energy space.
Vision 2030 strongly promotes private sector involvement in both old and new sectors and provides myriad opportunities spanning social and community-related projects—such as housing, health clubs, and public facilities—and the education, healthcare, municipal services, tourism, energy, environmental, industrial and manufacturing, oil and gas, technology, and transportation sectors. PPA will continue to view and evaluate investment opportunities both from a micro and a macro perspective by taking advantage of local and international investment opportunities identified through our research that fall within the constructs of PPA’s strategic investment objectives.
King Abdullah Financial District is still under negotiation, and hence we cannot really expand on that comment. However, we have other real estate projects, such as the 7,345-unit development in Jeddah and Digital City in Riyadh. Real estate is an important part of an efficient investment portfolio and therefore we will continue to have an allocation to it as long as valuations are attractive.
Growth in the sector is mainly a function of the size of the participants within each pension scheme, changes in demographic profile of the contributors and pensioners, and the scheme structure. It also depends on the ability of the scheme to adapt to various local ambitious development plans and global economic developments, and manage its investment portfolio suitably.
Our immediate priority is to implement our goal of creating a new asset management company that will run leaner, and be more focused on becoming a trusted leader in investments, and to deliver the services needed by our contributors and pensioners though various channels.
SAUDI ARABIA - Industry
President, Royal Commission for Jubail & Yanbu
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