According to a recent report by Bank of America Corporation, an American multinational investment bank and financial services holding company headquartered in Charlotte, North Carolina, the Saudi Public Investment Fund, founded in 1971, is in a great position to readjust its financial situation with ease and lessen the Kingdom’s focus on oil. The Kingdom’s fund is among the largest sovereign wealth funds in the world with total estimated assets of $347 billion and was founded for the purpose of investing funds on behalf of the Government of Saudi Arabia.
PIF is known for investing both locally and globally and is known in the Middle East and the GCC as one of the strongest and most diversified sovereign wealth funds. The Bank of America report stated that PIF is capable of both recovering and readjusting its public financial situation through decreasing capital spending and expenses in the national budget while also generating potential profits.
Bank of America also anticipates that the global status of the PIF can provide it with wider access to diverse foreign assets that would increase the Kingdom’s non-oil earnings. Through such strategy the PIF can increase Return on Investment (ROI) and Earnings per share (EPS) to the government’s budget with time and beyond the dependence of oil reserves. In addition, Bank of America expects the sovereign wealth fund to require more funds and capital to meet the goals of local and national investments.
If you see something out of place or would like to contribute to this story, check out our Ethics and Policy section.