100 billion riyals or $26.67 billion have been given as public investment fund of Saudi Arabia by the King Salman. The PIF on Wednesday has released the confirmation statement for the same through the SPA.
These funds will support foreign and local investments especially for those that will build the local private market. There is no timeline given for the investments though they shall be phased effectively. The Saudi Government announced its PIF expansion this year through their economic reforms plan. The PIF was founded in 1971 for finance development of projects ranging from $160 billion to $2 trillion. This happens through the transfer of assets like ownership of state oil company Saudi Aramco.
The World’s largest Sovereign Fund
This has made the PIF the world’s largest sovereign fund on paper till date. It is not related to cash being available for investment though. Abroad investments will be increased in June. It has bought an Uber (ride-hailing service) stake for $3.5 billion too. However, it says that much of the focus will be local projects that will reduce KSA’s oil exports reliance. The funds have also announced plans to buy major stakes in Adeptio on Monday. It is a gulf-based investment firm that controls Americana (Kuwait Foods Co).
Lastly, the stalled financial district project in Riyadh will also be taken over as the King Abdullah Economic City. It is in north of Jeddah.