Saudi Arabia’s Public Investment Fund (PIF) announced plans to scale back its international investments by approximately one-third to refocus on domestic growth initiatives, according to Governor Yasir Al-Rumayyan at the Future Investment Initiative (FII) summit in Riyadh. This reduction aims to lower the PIF’s foreign investments to between 18% and 20% of its portfolio, compared to the current 30%.
The PIF, valued at $925 billion, is a core vehicle in Crown Prince Mohammed bin Salman’s vision to transform the Kingdom’s economy by reducing its dependency on oil. Al-Rumayyan emphasized a shift towards local joint ventures with both domestic and global companies to stimulate the Kingdom’s economy through diversified investments. “We see a shift from taking our money to invest elsewhere to co-investments here,” he noted, highlighting Saudi Arabia’s focus on economic collaboration and sustainable growth.
This strategic adjustment comes amid rising project costs and a broader economic diversification effort. The FII summit attracted influential leaders in business, technology, and finance, positioning Saudi Arabia as a competitive player in a range of sectors beyond energy. The event also underscored Saudi Arabia’s goal to enhance investor interest in domestic projects despite regional tensions.
Other high-profile speakers included Moderna CEO Stephane Bancel and Morgan Stanley CEO Ted Pick, who spoke on global economic challenges and anticipated growth in corporate deals. Additionally, BlackRock’s Larry Fink warned that inflation pressures could be more deeply embedded than expected, hinting at a potential need for new approaches in central bank policies worldwide.
