<\/p>\n
Saudi Arabia\u2019s sovereign wealth fund will step up efforts to boost returns and build portfolio companies into global champions as the kingdom contends with the economic costs of the Iran war.<\/p>\n
The Public Investment Fund unveiled its 2026\u20132030 strategy, saying it would prioritise building competitive domestic ecosystems, unlocking the value of strategic assets and increasing the role of the private sector as a partner in economic development, according to a statement in the Saudi Press Agency.<\/p>\n
Governor Yasir Al-Rumayyan said the new strategy, which structures its investments into three portfolios \u2014 vision, strategic and financial \u2014 represented \u201ca natural next step\u201d in the $1 trillion fund\u2019s development. \u201cIt offers our partners more opportunities to invest in high-quality assets and ecosystems, alongside PIF,\u201d he said.<\/p>\n
The wealth fund has increasingly pushed to generate financial returns while acting as a catalyst for investment in the broader economy, rather than serving as a source of capital.<\/p>\n
The updated strategy comes amid a two-week ceasefire between the US and Iran in a war that saw Gulf nations bear the brunt of the Islamic Republic\u2019s attacks. Saudi Arabia\u2019s oil and gas production and exports have been hampered by a series of strikes on critical energy infrastructure even as crude prices surged.<\/p>\n
In the months before the conflict began, officials in Riyadh had started making tough spending decisions, ordering sweeping reviews of ambitious projects across the country and pivoting toward areas more likely to attract foreign investment.<\/p>\n
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Still, the war\u2019s fallout makes advancing Crown Prince Mohammed bin Salman\u2019s Vision 2030 agenda to diversify the economy away from oil \u2014 in which the PIF plays a central role \u2014 even more challenging.<\/p>\n<\/p>\n
Under the 2026\u20132030 strategy, PIF has created a \u201cvision portfolio\u201d to integrate key sectors of the domestic economy and drive growth. The fund identified six priority ecosystems: tourism, travel and entertainment; urban development and livability; advanced manufacturing and innovation; industrials and logistics; clean energy, water and renewables infrastructure; and Neom.<\/p>\n
Alongside this, a \u201cstrategic portfolio\u201d will focus on actively managing key assets to maximize financial returns and economic impact, while supporting portfolio companies to attract capital and scale into global champions \u2014 as reported by Bloomberg News in October.<\/p>\n
Since its inception, the PIF has established about 100 companies ranging from a new airline Riyadh Air to artificial intelligence firm Humain. As portfolio companies mature, the fund has been looking to tap outside investors including through initial public offerings.<\/p>\n
A third \u201cfinancial portfolio\u201d will manage the fund\u2019s direct and indirect investments in global markets. The PIF\u2019s internal rate of return has averaged about 7.2% since 2015, Al-Rumayyan said in September.<\/p>\n
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The plan dovetails with the kingdom\u2019s broader goals of focusing on developing aspects of the local economy like tourism, entertainment and gaming, while potentially paring back some elements \u2014 including megaprojects like Neom. The fate of the project, located in a remote desert area in the country\u2019s northwest, has been in question in recent months amid a slew of challenges including design and feasibility issues, Bloomberg News has reported.<\/p>\n
At a press conference Wednesday, Al-Rumayyan said there is no cancellation of any Neom project, but there are delays so the fund can prioritize preparation for the World Expo in 2030, the FIFA World Cup in 2034 and AI investments.<\/p>\n
More broadly, the wealth fund has remained active in global dealmaking, even amid the war. Savvy Games Group, a unit of the PIF, agreed to buy Moonton from ByteDance Ltd. in March in a deal valuing the mobile games maker at $6 billion, and more recently another affiliate committed an additional $550 million to electric-car maker Lucid Group Inc.<\/p>\n
Al-Rumayyan had previously flagged the PIF\u2019s intention to boost total annual capital deployment to $70 billion after 2025 and emphasized that its investments, in absolute dollar terms, will continue to rise abroad even as it focuses at home.<\/p>\n
The wealth fund, which oversees more than $1 trillion, last year raised its 2030 target for assets to about $2.7 trillion.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
#Saudi #Wealth #Fund #sets #strategy #build #global #champions<\/p>\n","protected":false},"excerpt":{"rendered":"
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