According to Saudi Arabia’s Vision 2030, the Public Investment Fund hopes to have more than $1.1 trillion in management assets by 2025.
This includes local and international investments in several projects, and the purchase of shares in major global companies.
The PIF uses a variety of strategies to lessen the country’s reliance on oil as part of Vision 2030.
In numbers
Following the implementation of the strategies and filing disclosures with the US Securities and Exchange Commission, the Public Investment Fund of Saudi Arabia nearly tripled its holdings of US-registered shares.
In the third quarter of 2021, PIF had $43.45 billion worth of shares registered in the United States, compared to $16 billion in the second quarter of the year.
At the end of September, the fund held shares in 32 companies, increasing from 13 companies in June.
The PIF, which manages $430 billion in assets, is at the heart of Saudi Arabia’s plans to reshape the economy by creating new sectors and diversifying revenues away from oil revenues.
Several funding sources, including loans and a transfer of about $40 billion from central bank reserves last year, have helped the PIF increase its resources in recent years.
Properties in Details
The PIF invested $45 billion in Softbank’s first $100-billion technology fund and several other entities like JustEatTakeAway.com and Ballard Power Systems, and it owns 3.75 percent of Uber Technologies.
It also owns a 62.72-percent stake in Lucid Electric Vehicles Company, which has a current market value of $71 billion.
Investing more than $1 billion in Lucid in 2018 in exchange for a significant stake, the Saudi sovereign wealth fund saw a massive return on its investment when the company went public in July.
On the other hand, the fund purchased $400 million worth of Cummins stocks, building a massive plant in Spain to manufacture the machines that generate electricity from hydrogen.
In technology shopping, the PIF invested 169 million dollars in Shopify, 182 million dollars in Pinterest, and 231 million dollars in Walmart.
It also turned to investing in fintech with companies like Visa and PayPal.
China also has a good part in Saudi Investments since PIF purchased significant shares in Bindudu and Alibaba Group, two of China’s largest e-commerce companies, purchased by the Saudi Wealth Fund in the third quarter.
Regional investments
The Public Investment Fund’s investments are not restricted to those made in other countries.
More than 331,000 people in Saudi Arabia have found work due to the fund establishing 26 local businesses and assets.
At the same time, more than $39.99 billion in local investments are expected to be made by companies wholly owned by the NEOM company by 2025.