Saudi PIF spending to reach $70b a year early

Dubai: Saudi Arabia’s Public Investment Fund (PIF) is set to increase its annual spending to $70 billion (Dh257 billion) by 2025, a year ahead of its earlier schedule, according to the International Monetary Fund (IMF).

PIF’s governor Yasir Al Rumayyan announced at a Saudi investment summit that the fund planned to boost its annual capital expenditures from approximately $50 billion (Dh183 billion) to $70 billion (Dh257 billion) starting in 2026.

However, the IMF report revealed that PIF’s investments are expected to grow from $40 billion (Dh147 billion) to $70 billion (Dh257 billion) by 2025.

The PIF appears to have spent less than initially budgeted for its projects, which are valued at over $1.25 trillion (Dh4.5 trillion).

In 2021, PIF set goals of $39 billion (Dh143 billion) in annual spending on projects and managing $1 trillion (Dh3.6 trillion) in assets by 2025.

It currently holds $978 billion (Dh3.5 trillion) in assets, according to global sovereign wealth fund ranking it among the world’s largest sovereign wealth funds.

PIF’s ambitious spending plans are consistent with an IMF forecast predicting a 4.7 per cent rise in Saudi Arabia’s gross domestic product next year, though the economy is still contracting.