Saudi Arabia’s Public Investment Fund (PIF), managing assets exceeding $900 billion, announced plans to reduce its foreign holdings from 30 per cent to 18-20 per cent, while intensifying its focus on domestic projects.
The announcement came during the eighth Future Investment Initiative summit in Riyadh on Tuesday, often referred to as “Davos in the Desert.”
PIF driving Saudi Arabia’s economic growth
PIF Governor Yassir Al-Rumayyan, speaking to a packed audience of global investors and business leaders, revealed that the fund has established over 92 new companies, with major investments in transformative projects including NEOM, Red Sea, and Qiddiya. These investments reflect Saudi Arabia’s broader economic diversification strategy, as the kingdom maintains its position as the fastest-growing economy within the G20.
The PIF’s strategic pivot comes at a crucial time when artificial intelligence emerges as a key investment frontier.
“AI could add nearly $20 trillion to the global economy by 2030,” Al-Rumayyan stated, highlighting Saudi Arabia’s ambition to become a global AI hub. The fund is reportedly in early discussions about a potential AI partnership worth up to $40 billion with venture capital giant Andreessen Horowitz.
Since its launch, the FII has facilitated deals worth over $125 billion, demonstrating Saudi Arabia’s growing influence in global investment circles. Al-Rumayyan highlighted that while financial returns remain important, investment decisions must balance economic, social, and environmental outcomes.
The kingdom’s strategic location and resources position it as a vital link for global investment in energy and technology sectors. With emerging markets expected to outperform advanced economies by 2030, Saudi Arabia’s domestic-focused investment strategy could reshape regional economic dynamics.
“People used to come to us and ask for money,” Al Rumayyan said during the panel discussion at the FII.
“We are now seeing a shift from people wanting to take our money to people wanting to co-invest.”
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