SAUDI ARABIA - Diplomacy
Crown Prince & PRIME MINISTER, Kingdom of Saudi Arabia
In line with the vision for the private sector to be an important, strategic, and permanent partner in the success of Saudi Arabia, the Crown Prince has outlined a PIF Strategy for 2021-2025 to ensure greater economic diversification and job creation.
With God’s help today we approve the Public Investment Fund (PIF) Strategy 2021-2025, which is central to achieving our country’s ambitions: economic growth, good quality of life, and inclusive, sustainable development in all traditional and modern industries.
Over the past years, PIF had made significant investments and reached economic milestones that enabled PIF to achieve strategic targets, doubling its assets to approximately SAR1.5 trillion by the end of 2020. PIF has launched a number of vital promising sectors and gigaprojects in the Kingdom and around the world, helping diversifying the Saudi economy in line with Vision 2030 objectives. In addition, PIF generated 331,000 direct and indirect jobs, by the close of the third quarter of 2020.
PIF—God willing—will invest around SAR1 trillion in the local economy in the coming years through 13 strategic sectors, in addition to doubling assets volume to more than SAR4 trillion by 2025, reaching SAR7.5 trillion by 2030.
PIF also aims to invest SAR2 trillion in new projects, from 2026 to 2030, for a cumulative SAR3-trillion investments in new projects in the coming 10 years. PIF also aims to create 1.8 million new jobs—direct and indirect—in the coming five years; that’s because PIF is not just the Kingdom’s investment arm, but also the engine for economic diversification and job creation. PIF is making significant strides toward becoming one of the world’s largest sovereign wealth funds by 2030.
With God’s help, PIF’s assets will exceed SAR7.5 trillion by 2030, contributing to developing the local economy and achieving inclusive financial and development sustainability, thus solidifying its position in global financial and business circles to become the partner of choice globally. In 2015, the PIF’s board of directors was reconstituted, with me becoming the chairman, and PIF was restructured, and its structure was reformulated entirely, putting PIF on the world map as a pioneering sovereign wealth funds capable of investing capital in the Kingdom of Saudi Arabia and the global markets for long-term returns, using a disciplined, practical governance model, and a clear authority and mission meeting the highest international standards.
PIF believes that the private sector is the most important strategic permanent partner that plays a crucial role in our success. The cooperation continues to develop and activate roles, enabling the private sector and uncovering investment opportunities. We aim to increase our local content in PIF projects and its portfolio companies to 60% in the coming five years.
PIF’s achievements have contributed to achieving the financial and development sustainability of the Saudi economy. PIF is committed to investing at least SAR150 billion annually in the local economy cumulatively by 2025. PIF and its portfolio companies aim to contribute SAR1.2 trillion to non-oil GDP cumulatively by the end of 2025. At PIF, we do not just invest in businesses and sectors; rather, we invest in the future, the future of the Kingdom, and the future of the world. Our purpose is to make our country a pioneer in funding new human futures to elevate the Kingdom and uplift the world.
I would like to thank their Excellencies, the board of directors, committee members, and PIF employees for their significant work over the past period to achieve targets and devise their strategy for 2025.
In conclusion, may God bring success to our collective efforts to achieve the aspirations of a great King, for great people, living in a great country called the Kingdom of Saudi Arabia. ✖
* Speech given by Crown Prince Mohammed bin Salman on Jan. 24, 2021.
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