PIF aims to grow to $2 trillion from $400bn by 2030: governor

PIF aims to grow to $2 trillion from $400bn by 2030: governor
The Public Investment Fund’s foreign investments have financial and other objectives to support the economy. (AFP file photo)
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Updated 14 January 2021

PIF aims to grow to $2 trillion from $400bn by 2030: governor

PIF aims to grow to $2 trillion from $400bn by 2030: governor
  • PIF’s investment outlook is long-term, with foreign investments currently representing between 25 percent and 30 percent

The Public Investment Fund (PIF) owns 67 percent stake in Lucid Motors with an investment worth $1.3 billion, governor Yasir Al-Rumayyan said in a statement to CNBC Arabia.
Al-Rumayyan indicated that the fund’s foreign investments have financial and other objectives to support the economy.
PIF’s investment outlook is long-term, with foreign investments currently representing between 25 percent and 30 percent, compared to 2 percent in 2016, he added.
The governor said that the fund is one of the largest investors in technology, and seeks to invest in projects within the Kingdom, stressing that the government is a main supporter of its projects.
The size of PIF is currently about $400 billion, and the fund aims to reach $2 trillion in 2030, he pointed out.
Speaking about local investments, Al-Rumayyan said that the fund has excellent stakes in many companies in the Saudi market, as it owns approximately 34 percent of the volume on the Saudi Stock Exchange (Tadawul).
Moreover, increasing its share in ACWA Power came due to the importance of renewable energy in the agenda of the fund and the government in general.
PIF is the single and largest shareholder in NEOM, Al-Rumayyan said, clarifying that the project is not only a real estate development but rather a complete financial, technical and social system.
The project will depend on 14 different sectors, including energy, water, transport, food, manufacturing, media, entertainment and culture, in addition to technology, tourism, sports, design, construction, services in general, health services, welfare and education.
NEOM aspires to form partnerships in each of these sectors with entrepreneurs as well as local and international companies, Al-Rumayyan emphasized, noting that the project has two private funds - one for investment and the other for financing - in addition to the support it receives from PIF.
Meanwhile, the governor also added that THE LINE is the first project of NEOM, and will be funded through investment capital, financing and partnerships with local and international investors.
One of the main objectives of NEOM is to have financial sustainability over the years and good governance in line with the internal system of the project and the investment policies of PIF, Al-Rumayyan concluded.


Flagship Huawei store in Saudi Arabia will be its biggest outside China

Flagship Huawei store in Saudi Arabia will be its biggest outside China
Terry He, the CEO of Huawei Tech Investment in Saudi Arabia, said the Kingdom is a very important market for the company. (AFP)
Updated 16 January 2021

Flagship Huawei store in Saudi Arabia will be its biggest outside China

Flagship Huawei store in Saudi Arabia will be its biggest outside China

RIYADH/JEDDAH: Chinese tech firm Huawei has signed an agreement with Kaden Investment for the launch in Saudi Arabia of its largest store outside China.
During the signing ceremony, at the Ministry of Investment headquarters in Riyadh, Investment Minister Khalid Al-Falih highlighted the importance of investment in information and communications technology, along with energy and entertainment, which are important pillars of the Kingdom’s Vision 2030 development plan.
He said that the agreement with Huawei is a symbol of the prosperity that comes from long-term partnerships, in this case a 20-year relationship with the Chinese business. It is a “long-standing digital partner and ahead of the curve” in spotting the potential offered by the Kingdom, he added.
“Huawei has played an instrumental role in Saudi Arabia’s development, collaborating with government and private enterprises to enhance our nation’s technological infrastructure,” said Al-Falih. “It continues to share our commitment to talent development, innovation and ambition, the values which underpin Vision 2030.”
Terry He, the CEO of Huawei Tech Investment in Saudi Arabia, said the Kingdom is a very important market for the company.
“It gives me great pleasure to announce the next step in Huawei’s commitment to the Kingdom of Saudi Arabia, to open the largest Huawei flagship store in the overseas market,” he added. “This will provide customers with an unprecedented, immersive full-scenario experience.”
Fahad Alarjani, a member of the Saudi Chinese Business Council, welcomed the agreement as a “huge success” for the Ministry of Investment, in collaboration with other Saudi ministries, in attracting high-tech investments to Saudi Arabia, “especially given that Huawei is considered a technology giant in China and the world.”
Alarjani, a doctorate-level scholar in sustainable entrepreneurship, SMEs development, and marketing strategies, said it is important that agencies in the Kingdom work together to create a fertile, world-leading environment for investors so that they can attract the latest, and sustainable, technological innovations.
“This will help to open new markets and speed up entrepreneurial development,” he added. “It is important to be aware of the fact that Chinese companies are working hard on being pioneers of 5G.”

The agreement with Huawei is a symbol of the prosperity that comes from long-term partnerships, in this case a 20-year relationship with the Chinese business.

Khalid Al-Falih, Investment minister

Saleh M. Al-Saleem, a professor of computer and information sciences at King Saud University, said: “The agreement will definitely entail training programs to transfer technology, and an investment by a company of this size in the Saudi market is an acknowledgment on its part of the huge size of the technological sector in the Kingdom.”


He added that the agreement opens the door for increased competition between the biggest international companies in the sector, and will contribute to lower costs and enhanced services in the Kingdom.
Saudi consumers also expressed excitement about the news. Pharmaceutical science graduate Ruwaid Mahalawi, 29, who lives in Jeddah and describes himself as a Huawei fan, said: “It’s nice to see big names coming into Saudi Arabia and this is only the start — it will inspire more companies to invest in the Kingdom and recognize the market is extremely welcoming.”
Saudis are a very tech savvy society, he said. “Children and adults alike use electronic devices — especially now, with the pandemic — whether it’s for work or schooling. I think it’s shedding light on how big the market is here.”
Mahalawi’s wife, 26-year-old Wajd Abdullah, is also a fan of the Chinese firm and said she ditched her iPhone for a Huawei Mate. She appreciates the added level of service that is provided when a tech brand sells its products through its own stores, rather than through third-party retailers.
“It’s always best when a brand’s own store opens,” she said. “You don’t have to worry about insurance for the gadgets or quality. The store staff will be more knowledgeable and helpful, too, and that helps to ensure customers will return.”
An opening date for the new store, which will be in Riyadh, has yet to be announced.