Saudi Arabia’s PIF Invests SR40 Billion to Strengthen Local Industries and Supply Chains

PIF has assets worth over $700 billion and helps to achieve Saudi Arabia’s Vision 2030 economic diversification.

Saudi Arabia’s Public Investment Fund (PIF) gave SR40 billion ($10.67 billion) investment through its private sector platform to support local supply chains, businesses, and industries.

Saudi Public Investment Fund (PIF) was established in 1971 to invest funds as a representative of the Government of Saudi Arabia. Crown Prince Mohammed bin Salman, Saudi Arabia‘s de facto ruler, has managed the funds since 2015. Over 60% of the fund activities take place within Saudi Arabia.

Yasir Al-Rumayyan, who spoke at the third PIF Private Sector Forum in Riyadh, pointed out that the MUSAHAMA Local Content Development Program helped the Kingdom’s sovereign wealth fund and its portfolio firms invest over SR400 billion in local content between 2020 and 2023.

PIF has assets worth over $700 billion and helps to achieve Saudi Arabia’s Vision 2030 economic diversification. Al-Rumayyan underlined that Saudi Arabia can achieve sustainable growth by diversifying its economy and implementing regulatory changes. PIF is providing funds for Saudi Arabia to help it achieve that growth.  

The fund’s governor stated that collaborating with private companies is crucial for PIF’s strategy as Saudi Arabia continues to improve its regulations to achieve long-term economic growth.

Al-Rumayyan claims that the fund’s initiatives have raised the contribution of local content from 47 percent to 53 percent across PIF and its subsidiaries.

Jerry Todd, the chief of PIF’s National Development Division, gave the keynote address to the 10,000 private sector participants, stressing that one of the forum’s main goals is to provide them access to three crucial opportunity areas and vital information.  

According to Todd, 100 PIF portfolio firms in the main hall next door are willing to talk about their procurement needs and guide through the registering process and becoming a vendor.

He noted that during the next two days, 14 PIF portfolio firms would share opportunities with the investors and have special sessions for supply chain developers on logistics, transportation, and the automotive industry.

Todd also gave an update on starting two new projects to empower Saudi people with the right resources.   

The first is the Accelerated Manufacturing Program, which the governor emphasized. He stated that 13 small and medium-sized businesses will be part of the program out of 350 applicants. They will be attending a six-month intensive program that will start in September.

Todd also mentioned that those companies have already signed two product development agreements and twelve commercial agreements with PIF portfolio businesses, and they will start tomorrow. They have access to seven new export markets and will sign seven Memorandums of Understanding (MoU) with the private sector during the next two days.

Todd highlighted the second project by introducing the MUSAHAMA Design Competition, in which 160 up-and-coming local design firms and 373 Saudi architectural students competed. The goal of MUSAHAMA was to elevate local content and increase competitiveness within the private sector and portfolio companies. The participants had to reimagine a community zone within one of the ROSHN developments and use as many locally sourced building materials as possible.

According to Todd, the conference gives opportunities for companies to investigate prospects in three main areas: investing in Saudi Arabia’s rapidly growing economy, creating local tech-enabled supply chains to assist emerging industries, and providing goods and services to PIF portfolio companies.  

Todd recommends meeting with the participants from the two programs he mentioned. He remarked that their accomplishments, commitment, and enthusiasm are motivating and serve as a reminder to all of the young people who are the most valuable resource in our country.

He concludes by requesting the private companies to work towards promoting local demand, growing their domestic supply chains, and creating more investment opportunities across the Kingdom.