Saudi Arabia's sovereign wealth fund PIF (The Public Investment Fund) has announced the launch of its Local Content Growth Programme which is aimed at leveraging PIF spending to catalyze the development of at-scale, competitive, and innovative sectors and industries in Saudi Arabia. 

 

The Program will aim to achieve the fund’s aspiration of increasing its contribution to the Saudi economy by increasing PIF and its affiliates’ contribution to local content to 60% by the end of 2025, thereby enabling and supporting the country’s private sector in line with Saudi Arabia’s Vision 2030, said PIF in its statement.

 

The Program also includes a Local Content Policy, in which PIF’s portfolio companies will encourage and support local products and services from project design stage to implementation, with priority given to private sector service providers and suppliers based on the size of their contribution to local content. 

 

With progress reported on a regular basis, this will support the competitiveness of local industries, driving innovation and confidence in local materials and designs.

 

The announcement comes at the sixth Edition of the Future Investment Initiative (FII) in Riyadh.

 

Jerry Todd, Head of the National Development Division at PIF, said: "Launching the Program strengthens our position as a key enabler of a thriving private sector and a more resilient domestic economy in Saudi Arabia. This move will help build local capabilities, create opportunities for private sector players across the value chain, and build on Saudi Arabia’s position at the regional and global level in line with Vision 2030."

 

In 2021, PIF’s portfolio companies awarded SAR140 billion worth of contracts to local private sector companies, nearly 60% of which went to the construction materials and services, information technology and telecommunications, and financial services sectors.

 

This initiative is in line with PIF’s strategic objective of building partnerships with and enabling the private sector to boost Saudi Arabia’s GDP and create jobs in strategic sectors, said the statement.

 

The National Development Division was created to support PIF’s contribution to the local economy by defining PIF’s strategic directions regarding Saudi Arabia’s economic and social development, and evaluating the economic impact of PIF’s strategy and investments.

 

PIF has launched several initiatives to grow competitive and innovative industries in Saudi Arabia, focusing on its 13 strategic sectors. It facilitates creation of investment opportunities for local players, strengthens supply chains, creates high value jobs, and stimulates the local private sector, it added.-TradeArabia News Service