Invested In Better: How PIF’s blueprints for living and working are reimagining the future today

• To support Saudi Arabia’s aim to become one of the top 15 global economies by 2030, PIF is investing in strategic sectors
• The Fund is the first SWF to launch massive, complex giga-projects at an unprecedented scale
• PIF is designing new industry ecosystems to advance Saudi Arabia on the world stage

Over decades, sovereign wealth funds have typically followed a standard script: investing state funds for the well-being of citizens and society. Saudi Arabia’s PIF is similar to other funds in this objective.

But that is where comparisons end. 

PIF’s innovative approach beyond “business as usual” has resulted in a new model for local and international investing – one that is driving transformation at a scale never seen before.

When PIF was founded in 1971 under the Ministry of Finance, part of its purpose was to establish national champions of foundational importance to Saudi Arabia.  

In 2015, oversight was transferred to the Council of Economic and Development Affairs. With the board of directors chaired by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister and Chairman of PIF, the Fund was reimagined as a transformational force. In 2017, it announced the first edition of its strategy to expand into key sectors and develop powerful public and private partnerships, in support of Saudi Vision 2030 – the national roadmap for economic diversification.

PIF also dramatically increased hiring (from a staff of 40 to nearly 2,500, including professionals from more than 60 countries) and has opened subsidiary companies offices in London, New York and Hong Kong.

This ambitious remit has sped PIF’s path to becoming not just one of the world’s leading SWFs, but also one of the most powerful and impactful global asset management firms. Its more than $700 billion in assets under management are targeted to exceed $1 trillion by 2025, and $2 trillion by 2030. The Fund is investing across 13 priority sectors in Saudi Arabia and more globally, and has created 92 portfolio companies and more than 644,000 direct and indirect jobs in Saudi Arabia alone, plus many thousands more around the world.

After all, reimagining Saudi Arabia – one of the most important countries in the world – carries considerable significance, as diversifying beyond hydrocarbon wealth is intended to boost GDP for generational prosperity, create jobs, and enhance quality of life – crucial for a nation with other essential resource wealth to tap, and where almost 60% of the population are under the age of 30.

 

 

_{^{Qiddiya is set to become the new capital of entertainment, sports, and the arts}}

Invested in Better: Transformation on an Unprecedented Scale

This is why PIF is invested in better.

The Fund is tasked with amplifying economic and social impact by accelerating fast-growing markets, stimulating industry ecosystems and partnerships, removing barriers to growth, and reimagining ways of living and working.

Given Saudi Arabia’s aim to become one of the top 15 global economies by 2030, PIF is nurturing strategic sectors to speed development and enable and support the vital private sector.

 

PIF is a long-term, active investor. It was the first SWF to launch massive, complex giga-projects at an unprecedented scale, to catalyze key sectors for human benefit.

 

To achieve its diverse objectives, PIF adopted a unique approach by designing these new industry ecosystems to achieve synergies. New enterprises will jump-start investment and attract world-leading partners, fostering entrepreneurial business along the value chain.

 

In this way, PIF creates new blueprints that are already advancing Saudi Arabia’s role on the world stage. PIF manages six pools of capital under the umbrella of one fund – indicating both its scale, and ability to spark a new era of growth and opportunity.

 

_{^{The St. Regis Red Sea Resort is located on Ummahat Island, The Red Sea, Saudi Arabia}}

Blueprints for Living and Working

One example of this in action is the PIF-owned Red Sea Global, a portfolio of resorts along the western coastline designed to launch Saudi Arabia’s global tourism sector by opening virtually untouched islands for sustainable travel experiences. This includes regenerative development of nature reserves, constructed wetlands for wastewater treatment, and the world’s first solar-powered, zero-emissions 5G network. Hospitality and conservation training programs ensure that Saudi citizens benefit from Red Sea Global career training and job opportunities.

Hotels at the flagship destination, The Red Sea, opened visitor bookings in October – officially putting Saudi Arabia on the luxury travel map.

 

_{^{THE LINE is a 170-kilometer-long city of the future}}

Another PIF giga-project is NEOM, a 14-sector economic engine with cognitive urban developments focused on solutions to global challenges, including the 170-kilometer-long city of the future, THE LINE. Its scope is reflected in a plan to reinvent urban living alongside land preservation, unprecedented functional efficiencies and reduced infrastructure footprint, for decades to come. NEOM is already delivering on its energy mandate by developing the world’s largest hydrogen plant.

 

_{^{PIF is an investor in U.S. luxury EV maker Lucid Group}}

Creating a Global Automotive Hub (and more)

To illustrate the vision of creating long-range value and sustainable market outcomes, PIF is helping build Saudi Arabia’s automotive industry, creating new manufacturing capabilities, infrastructure and supply chains here and beyond Saudi borders to generate jobs, enhance private-sector engagement, localize R&D and innovation, and align with renewable energy goals.  

Recently, the Saudi Electricity Company and PIF launched the Electric Vehicle Infrastructure Company to address one of the most critical elements of EV adoption through the installation of charging stations in more than 1,000 locations.

Other PIF portfolio companies are also driving the sector’s development. Ceer, the first Saudi EV brand, is slated to produce 170,000 cars a year, and generate some 30,000 direct and indirect jobs. Also, this year the U.S. luxury EV maker Lucid Group, in which PIF is an investor, opened its first overseas production factory in Saudi Arabia – helping launch the country’s automotive-manufacturing capabilities. Recent joint ventures with Pirelli and Hyundai will establish tire and car manufacturing facilities respectively in Saudi Arabia, enhanced by technical and commercial assistance.

 

_{^{Riyadh Air is Saudi Arabia’s new national carrier}}

Spotting opportunities to accelerate high-potential markets is another growth strategy. The future development of King Salman International Airport, which will span 57sq km and encompass Riyadh Airport’s existing terminals, is complemented by PIF’s launch of flagship carrier Riyadh Air, which is expected to add $20 billion to non-oil GDP growth, and create hundreds of thousands of direct and indirect jobs in Saudi Arabia and in the U.S. across 38 states, and more than 300 suppliers and vendors in the U.S.

Other projects designed for accelerated impact include PIF’s Savvy Games Group, geared to bring gaming and esports, the world’s largest entertainment sector, to Saudi Arabia and draw industry players into an ecosystem for developers and studios. The broader sector received a further boost in October, when Crown Prince Mohammed bin Salman announced the launch of the Esports World Cup, which will be held annually in Riyadh starting summer 2024, and is set to be the largest global event of its kind.

A further effort to build the sports and entertainment sector is anchored by SRJ Sports Investments to support global intellectual property, enhance the fan experience and create transformative technologies. Another PIF company is Kayanee, which is focused on women’s empowerment and quality of life, aiming to reach more than a million clients through sports, fitness, nutrition and more to balance mind and body.

Other PIF companies promote the export of world-leading Saudi products while creating opportunities for local entrepreneurs and artisans – for example, the Saudi Coffee Company with its sustainable farming techniques, the Sawani Company, offering camel milk as a dairy alternative, and the Al Madinah Heritage Company for nutritious Ajwa dates. This is in addition to the broader efforts of the Saudi Agricultural and Livestock Investment Company (SALIC), PIF’s agribusiness investment arm, which stimulates growth in the sector to contribute to Saudi Arabia’s food security.

 

_{^{Saudi real estate developer ROSHN is building eco-conscious integrated communities}}

Transformative Results

Other PIF companies driving transformation include giga-project ROSHN, which is contributing to a national target to increase home-ownership in Saudi Arabia to 70% percent of the population by building eco-conscious integrated communities and providing financial assistance, and Qiddiya, a disruptive destination city set to become the new capital of entertainment, sports, and the arts.

Its role as a pillar of the Saudi economy – and its commitment to the nation’s sustainability agenda – led to PIF being the first SWF to issue a green bond, and the first-ever institution to issue a century green bond. Another signal of the Fund’s credit worthiness came in February 2022, when both Fitch and fellow agency Moody’s awarded PIF its inaugural international credit ratings. PIF’s scorecard-indicated outcome – a measure of credit strength on a standalone basis – is the second highest globally among SWFs that are rated by Moody’s. Fitch in November affirmed PIF’s A+ issuer default ratings, highlighting the Fund’s “very strong” status, ownership, and control.

Confidence in PIF is also reflected in a string of IPOs including oil and gas driller ADES, which was listed on the London Stock Exchange before raising $1.22 billion in an IPO in Riyadh in September – the biggest listing in Saudi Arabia this year.

 

PIF is invested in a new future, pioneering models to spur prosperity and better living – now and in the future – by driving economies locally and around the world.