According to Yasir Al-Rumayyan, the governor of Saudi Arabia’s Public Investment Fund (PIF), the fund and its portfolio companies have attracted investments worth SAR96 billion ($25.6 billion) in less than three years. Al-Rumayyan made this announcement during the second Private Sector Forum held in Riyadh. The investments were focused on 13 strategic sectors in the Kingdom between the beginning of 2021 and the end of the third quarter of 2023.
Al-Rumayyan highlighted that over 100 Saudi companies are eligible to collaborate with the fund’s companies through the pre-qualification program for contractors. Additionally, more than 200 small and medium-sized companies received training courses to help them succeed in tendering processes.
Expanding opportunities
Expressing his appreciation for the nearly SAR100 billion secured from businesses, Al-Rumayyan emphasized the significant role played by the private sector as an investor in the fund’s projects and portfolio companies. He credited the success to the initiatives and programs launched by the PIF, which strengthened the partnership with the private sector. The private sector platform introduced by the fund in the previous year offers over 200 opportunities worth more than SAR20 billion.
A collaborative approach to Vision 2030
During his speech, Al-Rumayyan mentioned that the Vision 2030 of Saudi Arabia considers empowering the private sector as a fundamental pillar for building a prosperous economy. The vision aims to increase the private sector’s contribution to the gross domestic product to 65 percent by 2030. He also noted that 56 of the fund’s companies have implemented their own policies to enhance the contribution of indigenous content since the launch of the local content growth program MUSAHAMA. Al-Rumayyan underscored the importance of both foreign direct investment and local investment to the fund, stating that they will work together to achieve the desired goals of the vision.
Fostering partnerships for growth
The Private Sector Forum, taking place from February 6 to 7 at the King Abdulaziz International Convention Center, aims to foster partnerships between the PIF, its portfolio companies, and the private sector. The sovereign wealth fund aims to increase local content through its portfolio companies to 60 percent by the end of 2025. Over 80 PIF portfolio companies, as well as ministers and CEOs, are expected to attend the forum.
#PIF will hold its second #PIF_PrivateSectorForum—the largest gathering of its kind in the country—along with its accompanying exhibition on February 6-7, 2024, at the King Abdulaziz International Convention Center in Riyadh.
— Public Investment Fund (@PIF_en) February 5, 2024
New Contractor Financing Program
During the forum, PIF, in collaboration with the National Infrastructure Fund, introduced the Contractor Financing Program. This program is designed to strengthen the construction sector by offering customized financing solutions to builders. Moreover, it aims to enhance the construction ecosystem and promote projects that improve contractors’ cashflows.
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