A handout picture provided by the Saudi Royal Palace on November 12, 2020, shows Saudi Crown Prince Mohammed bin Salman Image Credit: AFP

Saudi Arabia’s Crown Prince Mohammed bin Salman on Sunday approved a five-year strategy for the Kingdom’s sovereign wealth fund, the Public Investment Fund (PIF), that aims to increase its assets to 4 trillion riyals by 2025 and 7.5 trillion riyals by 2030.

The fund will inject SR150 billion annually in the national economy up to 2025. Through its subsidiaries, the fund will contribute 1.2 trillion riyals to the Kingdom’s non-oil GDP accumulatively, contributing to supporting development and economic diversification in the Kingdom, while establishing itself as a preferred investment partner globally.

The Crown Prince said the fund aims to create 1.8 million jobs directly and indirectly by 2025. “The fund has achieved momentous investment and economic achievements and positioned itself as a leading global sovereign fund able to invest and manage huge capital in markets across the globe,” Mohammed bin Salman said. He highlighted that the fund’s new strategy constitutes a key pillar to achieve the Kingdom’s economic growth and comprehensive and sustainable development in various traditional and modern sectors, as well as to enhance the quality of life.

Under its 2021-2025 strategy, the fund will pump local investment into new projects by focusing on 13 vital and strategic sectors.

Outlining the fund’s achievements in the last five years, the Crown Prince said the fund managed to create a higher return of investments at a minimum of 7 per cent, up from 2 per cent since its establishment, with some investments exceeding 70 per cent and others making a return of more than 140 per cent. The fund increased its assets to 1.5 trillion riyals by the end of 2020 and contributed to activating 10 new sectors and creating 331,000 jobs.

“The fund has become one of the “key growth drivers” for the Saudi economy. Its new strategy aims to achieve the goals of Saudi Vision 2030 by maximizing the fund’s assets, launching new sectors, building strategic economic partnerships and localising technologies,” Mohammed bin Salman said.