Saudi Arabia’s Public Investment Fund (PIF) aims to more than double its asset base over the next five years, as the sovereign wealth fund looks to support the oil-rich kingdom’s efforts to expand its non-oil economy.
PIF plans to increase its assets under management to $1.07 trillion by 2025 and increase its contribution to the country’s non-oil economy to $320 billion through its portfolio companies, it said in a statement.
In its vision statement for the next five years, PIF said it will invest a minimum of $40 billion each year in Saudi Arabia’s projects and investments and create 1.8 million direct and indirect jobs by the end of 2025.
PIF, one of the world’s largest sovereign wealth funds, had assets worth $400 billion under management at the end of 2020. It has generated 331,000 direct and indirect jobs across 10 sectors over the past four years.
As part of its core domestic strategy, PIF will focus on 13 sectors including healthcare, utilities and renewable energy, telecoms, media and technology, real estate, financial services, and food and agriculture.
The other focus sectors will be automotive, transport and logistics, aerospace and defence, construction and building components and services, entertainment, leisure and sports, metals and mining, and consumer goods and retail.
PIF said it will focus on improving the quality of life domestically and internationally, driving environmental and economic sustainability and on developing new sectors and creating new opportunities.
The wealth fund’s strategy comes as the oil and gas rich kingdom has been trying to diversify its economy and has been implementing a long-term economic plan called the Vision 2030.
As part of this diversification strategy, PIF is also looking to set up a major airline company in partnership with other investors. A recent news report in Gulf News said that the proposed airline will compete with Saudi Airlines and other large carriers in the Middle East region.
PIF is also investing in Neom, a new-age futuristic city which will have a 170-km belt of hyperconnected communities with no cars and roads, according to a report by The Economic Times newspaper.