(PIF) is asovereign wealth fundowned bySaudi Arabia. It is among the largest sovereign wealth funds in the world with total estimated assets of $320 billion.It was founded for the purpose of investing funds on behalf of the Government of Saudi Arabia. The PIF has a portfolio made up of approximately 200 investments, of which around 20 are listed onTadawul, theSaudi Stock Exchange.
The Public Investment Fund invests in specific projects through equity,loansorguarantees, and allocations of public funds. The PIF also provides medium and long-term loans to the large-scale government and private industrial projects. The PIF invests in the fields of telecoms, aerospace, energy, green technologies, and security, seeking a focus on housing finance, renewable energy, and information technology.4
The Saudi Arabian Public Investment Fund (PIF) was established in 1971 by Royal Decree M/245to provide financing support for projects of strategic significance to the national economy.6
Since its inception, the PIF has been the Kingdoms main investment arm, and has played an important role in the financing of vital projects in the Kingdom, including in the oil refining, fertilizer,petrochemicaland electricity sectors. In July 2014, the Council of Ministers granted the PIF authority to fund new companies inside and outside the Kingdom, either independently or in cooperation with the public and private sectors, without the councils prior approval.7
In March 2015, oversight of PIF was moved from theMinistry of Financeto theCouncil of Economic and Development Affairs (CEDA). CEDA was created following the fluctuations in oil prices in 2014, in order to improve efficiency in the governments decision-making apparatus. As part of this process, a new PIF was appointed, chaired byHRHthe.8
Following these changes, the Board is taking steps to refine its investment capabilities and enable the fund to manage a broader portfolio of current and new assets,9ensuring that it is aligned with the governmentsVision 2030.10The aim is to diversify government resources and the economy and to help unlock strategic sectors.11
Beginning in 2015 the PIF began making a number of high-profile investments, including acquiring a 38% stake inSouth KoreasPosco Engineering & Construction Co. in July 201512and establishing a sizable fund with French firms in October 2015. In June 2016, the PIF acquired an approximate 5% stake inUberfor $3.5 billion. On 14 October 2016,SoftBank Groupannounced it had signed a memorandum of understanding with the PIF for the establishment of a London-based SoftBank Vision Fund which aims to invest up to $45 billion over five years in the tech sector.13
In March 2016, it was announced that ownership ofSaudi Aramcowould be transferred to the PIF and that the Kingdom will seek to list 5 percent of Aramcos shares by 2017. The PIF expects to become the largest sovereign wealth fund in the world with assets of $2 trillion.14
On May 20, 2017, during the Saudi-US CEO Forum which was part of PresidentDonald Trumps official trip to Saudi Arabia, the Public Investment Fund (PIF) announced plans to invest $40 billion in infrastructure projects, mostly in the U.S. Saudi Arabia, which is working to diversify its economy entered into business deals withGeneral ElectricLockheed MartinandThe Blackstone Group. Blackstone, whose CEO and founder Stephen A. Schwarzman is a top supporter of PresidentDonald Trump, entered into a non-binding memorandum by which the PIF committed $20 billion to the project.15During the CEO Forum US-Saudi, arms deals were announced including a pledge to assemble 150 Lockheed Martin Black Hawk helicopters in Saudi Arabia, representing 450 jobs in Saudi Arabia as part of the $6 billion deal for Black Hawks.16
Qiddiyah, an entertainment megaproject was established on April 7, 2017, and is currently being built, is wholly owned by PIF.17
On 31 July 2017, the PIF announced it will spearhead theRed Sea projectfor luxury beach resorts built over 50 islands unlocking 125 miles of coastline.18PIF will inject initial capital in order to raise funds for investments by international actors in the tourism and hospitality sectors.19
On August 7, 2018,Elon Muskannounced that he was considering taking automotive and energy companyTeslaprivate and that funding was secured.2021In a follow-up blog post six days later, Musk said the Saudi Arabian sovereign wealth fund had met with him several times since early 2017 to express interest in such a move because of the important need to diversify away from oil. As of that post, the fund held almost 5% of Tesla stock, purchased through public markets.22
On January 29, 2019, Saudi Arabia has announced setting up a closed joint-stock company namedNEOMwith $500 billion.23The aim of this company that wholly owned by the PIF, the sovereign wealth fund, is to develop the economic zone of Neom.24
In March, 2019, it was revealed that PIF payed a New York communications firm,Karv Communications, $120,000-a-month in order to repair the Saudis diplomatic damaged reputation after theAssassination of Jamal Khashoggi.25
In an aim to realize the Saudi Vision 2030, the PIF has signed a contract to launch the first commercial helicopter service in Saudi Arabia. Such a step would ultimately boost the tourism sector. Moreover, it will be utilized as a transportation mean within the major Saudi cities.26
The budgetary rule concerning the usage of capital gains from The Government Pension Fund Global
Public Investment Fund (PIF) – Sovereign Wealth Fund, Saudi Arabia – SWFI.
Top 81 Largest Sovereign Wealth Fund Rankings by Total Assets – SWFI.
Public Investment Fund (PIF) – Sovereign Wealth Fund, Saudi Arabia – SWFI.
Bloomberg – The Key Questions Asked About Saudi Arabias $2 Trillion Fund
Saudis refine blueprint for post-oil economy. 26 April 2016
Cabinet Session 23-3-2015 – kingdom of Saudi Arabia – Ministry of Foreign Affairs
Vision 2030 How to achieve our vision. June 2016.
Financial Times – The Saudi Reshuffle: five key reforms in Riyadh, May 2016. June 2016.
Al Arabiya full text of Vision 2030. June 2016.
Lets establish a joint venture, following a 20-minute explanation of the miracle of Incheon Songdo. POSCO Engineering & Construction., Ltd. November 4, 2015
SoftBank Group Corp. to Establish SoftBank Vision Fund. SoftBank Group. October 14, 2016
Dobson, Paul Warner (October 2, 2016).Saudi Arabias Vision 2030. Headline Hamster
Manchester, Julia (May 20, 2017).Blackstone, Saudis set to invest $40 billion in primarily U.S. infrastructure.
Saudi-US arms deal includes plans for 150 Lockheed Martin Black Hawk helicopters.
Qiddiya Investment Company officially established as standalone company.
His Royal Highness the Crown Prince Announces the Launch of The Red Sea project as an international tourist destination as part of the Kingdoms 2030 Vision,
Rob Hodgetts,Saudi Arabia launches luxury Red Sea beach resorts plan,
@elonmusk (August 7, 2018).Am considering taking Tesla private at $420. Funding secured(Tweet)
Taking Tesla Private. Tesla, Inc. August 7, 2018
Update on Taking Tesla Private. Tesla, Inc. August 13, 2018
UPDATE 1-Saudi NEOM set up as joint stock company run by state fund…
Saudi Arabia announces creation of Neom Company.
Saudi Arabia fund hires PR firm in the wake of Khashoggi murder, Andrew England, March 19, 2019,Financial Times
Saudi Public Investment Fund launches Kingdoms first commercial helicopter operator.
Special administrative regions of the Peoples Republic of China, participates as Hong Kong, China and Macao China.
Officially the Republic of China, participates asSeparate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, and Chinese Taipei in short.
This page was last edited on 16 May 2019, at 23:44