Riyadh - Mubasher: The Public Investment Fund (PIF) has launched on Wednesday its program from 2018 to 2020, as part of the Saudi Kingdom’s Vision 2030 Vision Realization Programs (VRP).
The four key objectives underpinning the program include growing and maximizing PIF assets; launching new sectors; localizing advanced technologies and knowledge; and building strategic economic partnerships, according to a statement issued on Wednesday.
The PIF Program, which is underpinned by 30 separate initiatives, will see the fund’s assets under management (AUM) increase to SAR 1.5 trillion, equivalent to more than $400 billion by 2020, the statement noted.
This will create 20,000 direct domestic jobs, more than half of which are high-skilled roles, and 256,000 construction jobs, which will increase the fund’s contribution to Saudi real gross domestic product (GDP) from 4.4% to 6.3%, and increase the share of local content to SAR 50 billion ($13 billion).
The Program also encompasses efforts to maximize value in existing assets, which make up the majority of the fund’s holdings, and a new target to increase its total shareholder returns (TSR) up from 3% to between 4% and 5%.
The fund recently revealed the NEOM Project, the Red Sea Project, the Al Qidiya Project, as well as the establishment of nine companies focused on launching promising new sectors in Saudi Arabia, including the Saudi Arabian Military Industries Company (SAMI), the Fund of Funds, and the Saudi Real Estate Refinancing Company.
Saudi Crown Prince Mohammad bin Salman Al Saud, the chairman of the PIF said that “The PIF Program represents a vital milestone as we work towards realizing Vision 2030. As well as being recognized for being well-capitalized, the Fund also wants to be known as being well-run, transparent and well-governed, and the PIF Program will ensure this ambition is delivered.”
“At home, the PIF Program will unlock value in the domestic portfolio and drive forward strategic and sustainable diversification by creating opportunities in a range of different industries. Internationally, the Fund has begun to invest in some of the world’s most innovative companies and formed partnerships that will support long-term income diversification and ensure Saudi Arabia is at the forefront of emerging trends,” he added.
The PIF Program 2018-2020 will be explored further over the remainder of the PIF-hosted Future Investment Initiative, which is bringing together global leaders, investors and innovators in Riyadh, Saudi Arabia, to explore the trends, opportunities and challenges shaping the investment landscape and world economy, the statement concluded.
