Introduction: Approval of the Public Investment Fund's 2026-2030 Strategy
Chaired by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister and Chairman of the Board of Directors of the Public Investment Fund, the Board of Directors of the Fund approved the Public Investment Fund’s strategy for the period from 2026 to 2030. This strategic step comes as a continuation of the long-term direction that aims to maximize returns and build local economic systems that are highly competitive at the global level.
Historical context and the Fund's role in Saudi Vision 2030
Since the launch of Saudi Vision 2030 in 2016, the Public Investment Fund (PIF) has undergone a comprehensive restructuring, transforming from a purely domestic investment fund into a key driver of the Saudi economy and one of the world's largest sovereign wealth funds. These transformations aim to reduce reliance on oil revenues and diversify national income sources. The new strategy (2026-2030) represents a natural transition from a phase of establishment, rapid growth, and expansion to a new phase focused on achieving sustainable value, maximizing economic impact, enhancing investment efficiency, and implementing the highest standards of governance and transparency, while strengthening the role of the private sector as a key partner in sustainable development.
The three investment portfolios of the new strategy
Over the next five years, the fund's investments will be distributed across three main portfolios to ensure diversification and flexibility:
1. Vision Portfolio
It aims to enhance integration among strategic sectors and drive the local economy. It focuses on developing six integrated economic ecosystems, including: tourism, travel, and entertainment; urban development; advanced industries and innovation; industry and logistics; clean and renewable energy and water infrastructure; and the NEOM project. This approach will open up broad opportunities for the local private sector to attract international investment.
2. Strategic Investment Portfolio
This portfolio focuses on managing and maximizing returns on strategic assets, increasing the economic impact of the fund's subsidiaries, and transforming them into leading global companies. It also aims to invest in long-term strategic sectors that align with global economic shifts.
3. Financial Investment Portfolio
It aims to achieve sustainable financial returns to strengthen the fund's financial position and develop national wealth for future generations. It targets direct and indirect investments in global markets to maximize returns and diversify the investment portfolio.
Importance and expected impact (locally, regionally, and internationally)
Domestically, the strategy will contribute to creating hundreds of thousands of direct and indirect jobs, improving the quality of life for citizens, and increasing the non-oil sector's contribution to GDP. Regionally, the fund reinforces the Kingdom's position as a leading financial and economic hub in the Middle East, attracting foreign capital. Internationally, it solidifies the fund's position as an influential global investor that contributes to shaping the future of vital sectors such as technology, artificial intelligence, and green energy.
Governor's statements and achievements of the previous phase
His Excellency the Governor of the Public Investment Fund, Mr. Yasser bin Othman Al-Rumayyan, affirmed that the Fund has succeeded in launching unprecedented major projects and high-quality investments in less than a decade. He indicated that the new strategy will build upon the tangible achievements realized between 2021 and 2025, the most prominent of which are:
- The assets under management are expected to more than double to exceed 3.4 trillion riyals in 2025, compared to 500 billion riyals in 2015.
- Achieving a total shareholder return exceeding 7% annually since 2017.
- Investing approximately 750 billion riyals locally in new projects during the period (2021-2025).
- The cumulative contribution of 910 billion riyals to the real non-oil GDP (2021-2024), bringing its contribution to approximately 10% in 2024.
- Spending approximately 590 billion riyals on local content.
- Expanding global presence by opening offices in Asia, Europe and America.
- It has obtained high credit ratings (Aa3 from Moody's, and A+ from Fitch) with a stable outlook, placing it among the elite of global sovereign wealth funds.
In conclusion, the Public Investment Fund will continue to invest flexibly both locally and internationally, taking advantage of global transformations, embracing innovation, and harnessing data to ensure continuous improvement and achieve institutional excellence that guarantees the long-term prosperity of the Kingdom’s economy.
