Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), plans to roll out a new long-term strategy aimed at boosting returns, supporting the local economy, and advancing the kingdom’s diversification away from oil, Bloomberg reports.
PIF Governor Yasir Al-Rumayyan said in an interview at the Economic Club of Washington D.C. that the updated strategy will build on the fund’s existing roadmap through 2030 and extend planning through 2040 and beyond. He did not provide specific details but emphasized that the fund will continue to prioritize investments within Saudi Arabia to develop new sectors, create jobs, and increase the use of domestically sourced goods.
Currently, about 80% of PIF’s capital is deployed locally, with the remainder invested internationally. Al-Rumayyan highlighted the fund’s focus on co-investments with global partners to attract foreign capital back to the kingdom. “We need to increase and grow our local content and one of the best ways to do so is to get direct foreign investments to the country,” he said.
The fund’s current strategy includes expanding international investments, developing mega-projects such as Neom, and encouraging greater participation from the private sector. The PIF plays a central role in driving Crown Prince Mohammed bin Salman’s Vision 2030 agenda and plans to increase annual capital deployment to $70 billion after 2025. According to the International Monetary Fund, the PIF is expected to continue investing at least $40 billion annually domestically, supporting Saudi Arabia’s economic growth.
The need for increased local investment has grown amid subdued oil prices, which have weighed on government revenues and could slow economic expansion. The fund is also diversifying its funding sources beyond government capital, including through international bond sales.
PIF’s assets under management reached $913 billion in 2024, solidifying its position as one of the world’s largest state-backed investors. The fund recently raised its 2030 target for assets to $2.67 trillion, and its internal rate of return has averaged about 7.2% since 2015, up from less than 2% prior to that.
With a workforce of roughly 3,000 and offices in Riyadh, New York, Hong Kong, Beijing, and Paris, the PIF is also planning regional expansions in Egypt, Jordan, Bahrain, and Oman.
