PIF - Public Investment Fund Program (2021-2025)

PIF – Public Investment Fund Program (2021-2025)

Public Investment

Fund program

2021 - 2025

About the Public Investment Fund Program (2021-2025):

• As a leading economic catalyst for the Kingdom PIF Program came to epitomize Saudi Arabia’s vision to diversify the economy and invest locally and internationally. PIF’s strategy seeks to realize this mission by establishing robust economic partnerships to deepen its impact well beyond Saudi borders.

• PIF Program is an impetus for the advancement of Vision 2030, as it endeavors to develop the Kingdom's wealth by contributing to non-oil GDP growth and investing opportunities across diversified sectors.

PIF Program Objectives

Program Objectives

Grow Assets

Unlock Sectors

Build Partnerships

Localize Knowledge

Grow the assets of the Public
Investment Fund

Unlock New Sectors through the Public
Investment Fund

Build Strategic Economic Partnerships
through the Public Investment Fund

Localize Cutting-Edge Technology &
Knowledge through the Public Investment
Fund

Targets

and Ambitions

PIF Program aspires to achieve its objectives by 2025

Assets

Under

Management

USD

1.07 Trillion

Domestic

Investment

USD

~40 Billion

at least annually

Share of

Assets

in New and
Growth Sectors

21 %

Jobs

Created

1.8 Million

direct and indirect jobs

of Local

Content

60 %

(Including PIF and its portfolio companies)

Share of

Assets

in International
Sectors

24 %

Non-oil

GDP

Contribution

USD

320

Billion cumulatively

Key Initiatives

2021 - 2025

PIF Key Intiatives

PIF has launched several initiatives that are the cornerstone for realizing Vision 2030 aspirations and representing its ambitions and strategic pillars. these initiatives are:

Aerospace & Defense

Grow the Kingdom’s Aerospace sector and solidify its Defense sector

The Defense sector is of strategic importance to Saudi Arabia, showcasing the need to establish domestic military industries at scale that are able to accommodate growing demand, and provide opportunities for PIF along the Aerospace & Defense value chain including military systems and equipment, parts and components, as well as MRO (Maintenance, Repair and Operations) services.

Automotive

Develop the Kingdom’s automotive capabilities by localizing R&D and manufacturing of new-age material.

Given that the automotive industry's development at the regional level represents an excellent opportunity for import substitution. Given it is one of the sectors with largest GDP and job multiplier, it would contribute to boost non-oil GDP growth and employment.

Transport and Logistics

Promote the Kingdom into a global Transport & Logistics hub

The initiative comes to cultivate connectivity in Saudi Arabia's logistics infrastructure and its operations, increase overall quality, provide services in time, foster the logistics sector's capabilities, and increase the private sector participation. The logistics sector remains a pivotal player in realizing Vision 2030 objectives.

Food and Agriculture

Enable the growth of Kingdom’s food and agriculture sector to help achieve a sustainable domestic food production system, diversify external food supply sources and ensure food security resilience

The global packaged food market is a SAR ~9 Tn growing market with shifting trends. The initiative aims to stimulate the growth of the food and agricultural sector in the Kingdom, cementing Saudi Arabia’s position as a hub for the Halal industry and distribution center to the world, leveraging current and new partnerships with leading players in food, pharmaceuticals, and cosmetics.

Construction and Building Components and Services

Solidify the Kingdom’s position as a leader in the Construction & Building Components and Services for the Real Estate sector

As part of PIF efforts to diversify the Saudi economy, this initiative aims to solidify the Kingdom’s position as a leader in the construction and building components and services for the Real Estate sector through securing the supply chain of Real Estate projects focusing on strategic products/ services, e.g., construction services, equipment, heavy machinery, concrete, etc.

Entertainment, Leisure, and Sports

Diversify and enrich Entertainment, Leisure & Sports experiences in the Kingdom to create a more vibrant society

This initiative aims to diversify and enrich the tourism and entertainment experience in the Kingdom to build a more vibrant society and solidify the sports sector's economic and social role on all levels. The Kingdom is focused on developing the entertainment, leisure & sports sector by creating new destinations and digitizing gaming content, to allow the Kingdom to grow internal tourism and reach its target of overnight visitors by 2030. The sports sector is one where PIF assessing its investment opportunities in line with its investment mandate and assessment criteria

Financial Services

Support the growth of the financial sector, a key enabler of the Kingdom’s vision 2030

The progressive growth of the financial sector is a key enabler of the Kingdom's Vision 2030. This initiative aims to support the growth of leading financial services agencies, enabling them to transform into a cashless community, and contributing to their ambitions consistent with the “Financial Sector Development Program”. PIF will join-forces with SAMA, SIDF, and other relevant entities.

Real Estate

Giga-Projects

Develop NEOM Project.
Develop Red Sea Project.
Develop Qiddiya Project.
Develop Roshn Project.

Utilities and Renewables

Leverage the Kingdom’s natural potential to grow the utilities and renewables sector

The Utilities & Renewables sectors have become increasingly relevant for the world today, as the United Nations defined “Climate Action” and “Affordable and Clean Energy” as two of the sustainable development goals (SDGs) for the world until 2030. This initiative is expected to add Saudi Arabia domestic capacity in utilities and renewables, adopt clean technologies to reduce the Kingdom’s carbon footprint while maximizing financial return and developmental impact.

Metals and Mining

Support the growth of the metals and mining sector, a key enabler of the Kingdom’s Vision 2030

Saudi Arabia is endowed with healthy mineral reserves, which are currently under-explored. The metals and mining sector is one of the most promising, so Saudi Arabia strives to increase the sector’s economic contribution as part of Vision 2030, making mining the third pillar of industry alongside oil and gas and petrochemicals. This initiative is in line with NIDLP’s goal becoming a leading producer and exporter of fertilizers. PIF’s role in enabling the goals set out in Vision 2030 for the sector will be through Ma’aden (Saudi Arabian Mining Company).

Healthcare

Stay at the forefront of innovation to improve Healthcare sector

Healthcare is one of essential priority sectors in Saudi Arabia, with enormous opportunities for growth. PIF seeks through this initiative to become a vital enabler of the sector and seeks to drive the utilization and alignment across healthcare services and products in collaboration with the private sector.

Consumer Goods and Retail

Unlock the development and growth of the retail and consumer goods sector

The initiative is expected to enable the development of the retail and consumer goods sector through the continued growth of Noon as a national e-commerce champion that can compete globally and as a regional powerhouse. Beyond core e-commerce, this initiative aims to support the development of Noon as the “Home screen of the Arab World” - a synergistic ecosystem of digital services around core e-commerce ranging from fintech services, digital consumer services, digital entertainment & media to digital advertisements. In addition to planned improvements in the logistics sector, the initiative seeks to increase the size of the e-commerce and logistics ecosystem in the region. To continuously raise the quality and efficiency of delivery.

Telecom, Media, and Technology

Develop the Kingdom’s innovation capabilities by localizing technology sector and developing Telecom & Media sector

Given the preeminent influence of the media and telecommunications sectors' growth in the Quality of Life program, this initiative intends to support the Kingdom to become a globally competitive hub of Technology, Media, and Telecom. To achieve such objectives, PIF will closely work with its portfolio companies to develop opportunities in various sectors by working with all relevant authorities.

PIF

Strategic Sectors

Aerospace & Defense

Automotive

Transport and Logistics

Food and Agriculture

Construction & Building Components and Services

Entertainment, Leisure & Sports

Financial Services

Real Estate

Utilities & Renewables

Metals and Mining

Healthcare

Consumer Goods and Retail

Telecom, Media and Technology

Key Achievements

Up To 2020

PIF has delivered significant breakthroughs since its transformation within Vision 2030 and its association with the Council of Economic and Development Affairs in 2015. During 2018- 2020, PIF has tackled many challenges and contributed to making a clear impact locally and globally, the most prominent of which are:

Growing AUM

with USD 150 Billion in 2015, reaching nearly USD 400 billion in 2020