Saudi Arabia's Public Investment Fund (PIF) will investment about SAR1 trillion ($266.55 billion) during the next five years in the local economy, which will create 1.8 million direct and indirect jobs by the end of 2025, said PIF Governor Yasir bin Othman Al-Rumayyan.
These jobs would focus on vital sectors such as entertainment, tourism and sports, building and construction materials, and real estate services, he said in a presentation today on the remarkable growth and development of the PIF, which has become a major engine driving the Kingdom's Vision 2030 and a catalyst for diversifying the local economy, said a Saudi Press Agency report.
Al-Rumayyan said that during the next five years the fund aims to focus on 13 vital sectors such as food, agriculture, aviation, defense, entertainment, tourism, sports, minerals, mining, transportation, logistics, financial services and others.
The presentation came during the periodic press briefing held by PIF Governor, following the PIF Board of Directors, under the Chairmanship of His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister and Chairman of the Council of Economic Affairs and Development, approved the fund's five-year strategy.
PIF Governor discussed the most prominent achievements of the fund during the past four years, its impact on the local economy, the features of the fund’s strategy for the next five years 2021-2025 and the future goals of the fund.
The Governor said: “The Public Investment Fund chaired by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, the Crown Prince, renews commitment to continue working to support development and economic diversification efforts in the Kingdom of Saudi Arabia, and to achieve the goals of the Kingdom's Vision 2030 in building an integrated economy for generations."
He stated that the fund has made great achievements during the period between 2018 and 2020. It contributed to achieving a clear impact at the local and global levels, such as raising the volume of assets by the end of 2020 to nearly SAR1.5 trillion, and achieving a significant increase in the total shareholder return, which doubled from about 3% in the period between 2014 and 2016 to about 8% in the period between 2018 and 2019.
On the most prominent targets of the new strategy, Al-Rumayyan said that the fund aspires to raise the value of its assets under management to SAR4 trillion; SAR 1 trillion cumulative investment in new projects locally; and raising the percentage of investments in new sectors of the fund’s assets from 15% in 2020 to 21% in 2021.
These targets will increase the fund’s contribution to non-oil GDP by SAR1.2 trillion cumulatively, creating 1.8 million jobs, in addition to contributing to local content to reach 60% of the fund and its subsidiaries.
He pointed out that the fund has witnessed an important shift in its strategy in order to be able to activate its role in diversifying the sources of income and non-oil revenues.
The fund has been able during the past four years to realise goals in terms of its domestic and global investments, and today it has become a main pillar in achieving financial and developmental sustainability of the Saudi economy.
Al-Rumayyan indicated that the fund's efforts are not limited to developing the kingdom's wealth by investing in financially viable projects only, but also to support new sectors through which the fund aims to enhance the growth of promising sectors and achieve a sustainable economic and development impact.