Saudi PIF opens Paris office, aims to double Europe investments

Saudi Arabia’s sovereign wealth fund is opening a subsidiary office in Paris as it seeks to deepen ties with France and double investment in Europe by 2030.

The expansion by the Public Investment Fund adds to global offices in New York, London, Hong Kong and Beijing, according to a statement Monday. French President Emmanuel Macron was expected at the opening ceremony, along with other senior officials.

The announcement follows comments over the weekend from PIF Governor Yasir Al-Rumayyan that the fund plans to grow its European investments and procurements to $170 billion by the start of the next decade. The state-backed investor deployed about $85 billion across the region between 2017 and 2024, with almost $9 billion of that going to France.

The PIF didn’t disclose details on how many staff it plans to hire for the Paris office or when it may start to increase local investment. The fund already has close ties to French private equity firm Ardian, with the two owning a combined stake of almost 40% in London’s Heathrow Airport.

The PIF is facing a delicate balancing act of retaining a top spot as one of the world’s most active international investors, while driving Crown Prince Mohammed bin Salman’s costly economic diversification at home. The latter has become increasingly challenging as the kingdom faces deepening budget deficits, in part due to lower oil prices.

The sovereign fund has broadened its quest for cash by tapping a wider pool of investors, ramping up debt sales and pursuing public offerings of subsidiary companies.

The PIF has said it plans to increase annual investment to as much as $70 billion a year after 2025. It aims to bring global investments down to 18% from about 30% of its portfolio, though has stressed the absolute dollar amount for overseas deals is expected to grow.