fbpx

PIF to Scale Down International Investments to 20%

PIF to Scale Down International Investments to 20%

– Saudi Arabia’s Public Investment Fund (PIF) is reducing its international investment percentage from 30% to 18-20%, signaling a strategic focus on consolidating domestic projects like NEOM, while maintaining global influence.

– The PIF aims to position Saudi Arabia as a global hub for Artificial Intelligence (AI), with efficient energy utilization and technology investments playing a crucial role in the Kingdom’s future economic landscape.

– The shift highlights Saudi Arabia’s focus on aligning fiscal strategies with energy transition efforts, ensuring sustainable investments that could potentially add $20 trillion to the global economy by 2030.

Saudi Arabia’s Public Investment Fund (PIF) plans to reduce its international investments from 30% to 18-20% of its $930 billion portfolio, as it positions itself as a global “super connector,” leveraging its strategic location and resources to attract global investments, according to PIF Governor statement.

Strategic Shift Towards AI-Driven Growth

Yasir Al Rumayyan, PIF Governor, emphasized at the FII8 summit that the global focus must shift from short-term financial gains to long-term sustainable growth, particularly through Artificial Intelligence (AI), which he believes will support both economies and societies. Saudi Arabia aims to be a central player in this AI transformation.

FII Institute focused on four key impact areas: AI & Robotics, Education, Healthcare, and Sustainability. 

The Future Investment Initiative (FII8) is taking place from October 29 to 31, with additional engagements scheduled throughout the week starting October 27 for members of the FII Institute, officials, and strategic partners. The conference will focus on data-driven discussions, ensuring that insights are based on factual information and lead to actionable strategies.

Reducing International Exposure, Maintaining Dollar Investment

Despite reducing the percentage of international investments, Al Rumayyan clarified that the dollar value invested overseas would remain the same due to the overall growth of the fund’s assets. This move aligns with the PIF’s vision to focus on domestic projects like NEOM while retaining significant foreign partnerships.

AI and Energy: Key Drivers for Economic Growth

Al Rumayyan highlighted Saudi Arabia’s advantages in energy efficiency, vast land, and innovation in fossil fuel technologies. He also noted that AI could contribute up to $20 trillion to the global economy by 2030, with Saudi Arabia aiming to be a global AI hub by 2027.

The Public Investment Fund (PIF) reported a 29% increase in Assets under Management (AuM), reaching SR2,871 billion ($765 billion) by the end of 2023, and further rising to $925 billion by July 2024.

If you see something out of place or would like to contribute to this story, check out our Ethics and Policy section.