Saudi Arabia's Public Investment Fund suppor
ting Vision 2030

Over the past decade, Saudi Arabia's Public Investment Fund (PIF) has played a pivotal role in driving economic and social transformation in alignment with the Kingdom's Vision 2030 agenda. Kearney consultants Isabel Neiva, Javier Herrera, and Martin Pavlica highlight five key pathways through which PIF supports Vision 2030:

Economic Diversification Enablement: PIF recognizes the vulnerability of the Saudi Arabian economy to fluctuations in global oil prices. To mitigate this risk, PIF actively promotes economic diversification by investing in various sectors, fostering rapid growth, and creating new opportunities. For instance, PIF's investments in the automotive sector, particularly electric vehicles, are encouraging private sector participation, thereby strengthening manufacturing and supply chains and boosting local content growth.

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Job Creation and Human Capital Development: PIF's investments across diverse sectors, including Saudi Giga projects and emerging fields like entertainment, tourism, and culture, have led to significant job creation and human capital development. On average, PIF's investments generate over 180,000 new jobs annually. For example, the Saudi Entertainment Ventures (Seven) company, backed by PIF, aims to create 21 entertainment destinations and over 20,000 direct jobs.

Technology and Innovation Focus: PIF actively contributes to placing Saudi Arabia on the global map of technology and innovation. It invests in cutting-edge technologies, from e-commerce to augmented reality startups and vertical farming, and has established funds to support innovation at different stages. PIF's commitment to innovation was underscored by transferring a 4% stake in Saudi Aramco to Sanabil, a fund dedicated to fostering innovation.

Sustainable Development and ESG: PIF is committed to sustainability and environmental, social, and governance (ESG) principles. It aims to achieve net-zero emissions by 2050 and plans to invest over $10 billion in eligible green projects by 2026. PIF launched the Regional Voluntary Carbon Market Company (VCM) and issued green bonds, raising $3 billion in October 2022, showcasing its dedication to sustainability and diversifying funding sources.

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Strategic International Presence: PIF's international investments play a crucial role in driving domestic economic growth and diversification. By investing in global companies, unicorns, and forming partnerships, PIF enhances its portfolio while extending its global influence. These international relationships facilitate new opportunities and sectors, attracting foreign investments to Saudi Arabia and promoting technology localization.

Overall, PIF operates with a clear strategic mandate to support Vision 2030, contributing to economic diversification, job creation, innovation, sustainability, and global engagement in alignment with Saudi Arabia's long-term goals.

Source: https://www.consultancy-me.com/