By innovation-sa on October 30, 2017 in News
Saudi Arabia’s Public Investment Fund (PIF) revealed plans to nearly double the value of assets it manages by 2020.
PIF, which is currently managing assets worth around $230 billion, plans to raise its value to $400 billion in the coming years. The funding is expected to come from proceeds of privatisation of state owned assets, including 5 percent of oil giant, Saudi Aramco.
The Kingdom’s sovereign wealth fund has potential plans to create 20,000 domestic jobs, and around 256,000 construction based jobs. Real estate and infrastructure markets will witness new investments in the coming years.
The fund plans to increase its investment returns from 3 percent to nearly 4-5 percent by 2020.
PIF is looking forward for more alliances in the global market. It has committed $20 billion to a $40 billion fund with the US equity fund BlackStone, in addition to the $45 billion agreed earlier with Japan’s SoftBank. Yasir Al- Rumayyan, managing director of PIF described this as “a conventional investment” focussing on infrastructure and extensive construction programs.
The most challenging project currently undertaken by PIF is NEOM, the $500 billion mega city in the north-western region of the country. Recently, PIF is seen to be concentrating more on projects associated with Kingdom’s ambitious reform plan, Vision 2030.