Saudi sovereign wealth fund goes global
PIF chaired by crown price key part of drive to diversify economy and boost foreign investments
Saudi Arabia’s massive sovereign wealth fund is to set up offices in London, San Francisco and New York as it aims to pour billions of dollars into foreign investments.
The Public Investment Fund’s (PIF) already owns sizeable stakes in the likes of Uber and Tesla, but now plans to increase its assets from $224bn to $400bn by 2020, and raise the share of foreign investments in its portfolio from 10% to 50% by 2030. It also expects to boost the number of people it employs from 450 to 2,000 by 2025.
“The fund is central to Saudi Arabia's Vision 2030, a plan spearheaded by [Crown Prince Mohammed] bin Salman to diversify the economy away from oil,” says CNN.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Bin Salman, who also chairs the PIF, “is the driving force behind the country's ambitions to develop new tourist and entertainment industries in a bid to encourage Saudis to spend more of their money at home”, says the news network.
Yet he is also facing intense scrutiny over his alleged involvement in the murder of Saudi journalist Jamal Khashoggi in Istanbul last October.
Bloomberg's Matthew Martin says Saudi Arabia’s US plans come “as the world’s biggest oil exporter tries to win back investor confidence” following the uproar that prompted several top executives and finance ministers pull out of an economic conference in October.
“It’s also seeking to move on from an alleged crackdown on corruption that rattled the kingdom’s business elite and weighed on economic growth,” says Martin.
Reuters reports “the fund has made substantial commitments to green projects, including renewables and recycling, and to technology companies, and is also backing the country’s plans to diversify into solar power as well as waste management, infrastructure and entertainment”.
So, while it fits very much within Salman’s economic diversification programme, the expansion of the Saudi sovereign wealth fund could also be seen as an attempt to buy some international goodwill at a time when the global economy is showing signs of slowing.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
'Make legal immigration a more plausible option'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
LA-to-Las Vegas high-speed rail line breaks ground
Speed Read The railway will be ready as soon as 2028
By Peter Weber, The Week US Published
-
Israel's military intelligence chief resigns
Speed Read Maj. Gen. Aharon Haliva is the first leader to quit for failing to prevent the Hamas attack in October
By Justin Klawans, The Week US Published
-
Puffed rice and yoga: inside the collapsed tunnel where Indian workers await rescue
Speed Read Workers trapped in collapsed tunnel are suffering from dysentery and anxiety over their rescue
By Sorcha Bradley, The Week UK Published
-
Gaza hospital blast: What the video evidence shows about who's to blame
Speed Read Nobody wants to take responsibility for the deadly explosion in the courtyard of Gaza's al-Ahli Hospital. Roll the tape.
By Peter Weber, The Week US Published
-
Giraffe poo seized after woman wanted to use it to make a necklace
Tall Tales And other stories from the stranger side of life
By Chas Newkey-Burden, The Week UK Published
-
Helicopter sound arouses crocodiles
Tall Tales And other stories from the stranger side of life
By Chas Newkey-Burden, The Week UK Published
-
Woman sues Disney over 'injurious wedgie'
Tall Tales And other stories from the stranger side of life
By Chas Newkey-Burden, The Week UK Published
-
Emotional support alligator turned away from baseball stadium
Tall Tales And other stories from the stranger side of life
By Chas Newkey-Burden, The Week UK Published
-
Europe's oldest shoes found in Spanish caves
Tall Tales And other stories from the stranger side of life
By Chas Newkey-Burden, The Week UK Published
-
Artworks stolen by Nazis returned to heirs of cabaret performer
It wasn't all bad Good news stories from the past seven days
By The Week Staff Published