Saudi Wealth Fund: Where Is It Invested?

Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), is one of the largest in the world, with assets of around $925 billion. The fund was created in 1971 to invest on behalf of the Saudi government and is chaired by Crown Prince Mohammed bin Salman. The PIF has a diverse portfolio, investing in sectors such as construction, entertainment, sports, food and agriculture, and telecom, media and technology. It has stakes in companies like Uber, Capcom, Nexon, and Newcastle United F.C. The fund aims to support Saudi Arabia's economic transformation and reduce its dependence on oil.

The Public Investment Fund (PIF)

Outside of Saudi Arabia, the PIF has made significant investments in foreign assets, including Premier League football club Newcastle United, Uber, Tesla, and Boeing. The fund has also received criticism for its lack of transparency and close ties to the Saudi government, which has faced scrutiny over its human rights record.

In recent years, the PIF has expanded its investment portfolio to include stakes in various sectors, including technology, entertainment, and renewable energy. The fund has committed to achieving attractive financial returns and long-term value for the country, in line with Saudi Vision 2030, which aims to diversify the economy away from oil.

The PIF's investment strategy is focused on both domestic and international diversification, with a commitment to sustainable investments that shape the future global economy. The fund has created a governance and operating model that reflects its mandate and objectives, building on global best practices to ensure transparency and efficient decision-making.

In terms of funding sources, the PIF relies on capital injections from the government, government assets transferred to the fund, loans and debt instruments, and retained earnings from investments. The fund has set a target of managing more than $1 trillion in assets by 2025 and has taken steps to increase its international assets portfolio to 50% by 2030.

PIF's international investments

The Public Investment Fund (PIF) is the sovereign wealth fund of Saudi Arabia and is among the largest sovereign wealth funds in the world, with total estimated assets of US$925 billion. Over 60% of the fund's activities are within Saudi Arabia, but it also has a diverse range of international investments.

PIF has a commitment to sustainable investments and is developing a portfolio of high-quality domestic, regional, and international investments across sectors, geographies, and asset classes. It has invested in some of the world's most innovative companies, forming partnerships to ensure Saudi Arabia remains at the forefront of emerging trends.

Some of PIF's notable international investments include:

• A 5% stake in Uber (worth $3.5 billion)
• A 5% stake in video game companies Capcom and Nexon (worth $1 billion)
• Minority stakes in major US companies, including Boeing, Meta Platforms (formerly Facebook), Citigroup, Disney, and Bank of America
• A $713.7 million stake in Boeing
• A $522 million stake in Citigroup
• A $495.8 million stake in Disney
• An $827.7 million stake in oil company BP
• A 2.32% stake in India's Jio Platforms (worth $1.5 billion)
• A 38% stake in Posco Engineering & Construction Co.
• A $487.6 million stake in Bank of America
• A small stake in Berkshire Hathaway
• A 5.7% stake in concert distributor Live Nation (worth $500 million)
• A 49% stake in Rocco Forte Hotels
• A 38% share of HOLON Gmbh, Germany, a subcompany of the Benteler Group

PIF has also invested in Silicon Valley projects, including Uber, electric carmaker Lucid, and augmented reality startup Magic Leap. In addition, it has taken stakes in 14 new venture capital funds and some of the world's biggest AI companies, including France's AI champion Mistral and Databricks.

The fund's international investments are part of its strategy to diversify the Saudi economy away from oil production and support the Kingdom's Vision 2030 blueprint.

PIF's domestic investments

The Public Investment Fund (PIF) is the sovereign wealth fund of Saudi Arabia, with total assets of around US$925 billion (£726.3 billion). More than 60% of the fund's activities are within Saudi Arabia, with investments primarily going to private conglomerates owned by prominent Saudi business families with close ties to the Saudi ruling family.

PIF has a focus on investing in strategic sectors such as energy, agriculture, health, infrastructure, and industrial zones. They aim to drive economic transformation and create jobs through their investments, supporting the private sector and key sectors of the economy.

Some notable domestic investments by PIF include:

• Arabian Industrial Fibers Company (Ibn Rushd): A leading manufacturer of PET chain in the region.
• International Company For Water and Power Projects (ACWA Power): A developer, investor, and operator of power generation and desalinated water production plants.
• King Abdullah Financial District (KAFD): An iconic business and lifestyle destination in Riyadh, owned and managed by a subsidiary of PIF.
• The Red Sea Project: A luxury tourism development offering exclusive experiences for global travellers, including access to Saudi Arabia's cultural treasures.
• Saudi Arabian Industrial Investments Company "Dussur": A sustainable investment model facilitating the development of key industrial sectors and value chains in the Kingdom.
• Saudi Coffee Company: Founded to increase Saudi Arabia's position in the global coffee industry and market world-famous coffee beans.
• Soudah Development (SD): A luxury mountain tourism destination launched by PIF, set at 3,015 meters above sea level on Saudi Arabia's highest peak.

PIF's investment in AI

The Public Investment Fund (PIF) is the sovereign wealth fund of Saudi Arabia, with assets of around US$925 billion. It was established in 1971 to invest funds on behalf of the Saudi government.

PIF has a dedicated arm for AI and emerging technologies, the Saudi Company for Artificial Intelligence (SCAI). SCAI is wholly owned by PIF and supports its strategy to position Saudi Arabia as a globally competitive hub for advanced technologies. SCAI's operations focus on delivering end-to-end cutting-edge AI and emerging technology solutions across various sectors, including smart cities, energy, healthcare, and financial services.

SCAI has partnerships with several companies to develop the AI ecosystem in Saudi Arabia. These include Saudi Telecom Company (stc), Aramco, Tahakom, Lean, and Alibaba.

PIF has also invested in several companies that are integrating AI-powered, data-driven systems, such as Riyad Bank, Lean, and ACWA Power.

In line with Saudi Vision 2030, Saudi Arabia is investing $6.4 billion in future technologies, including AI. The Saudi Data and Artificial Intelligence Authority (SDAIA) was established by royal decree in 2019 to facilitate the adoption of AI and achieve the Vision 2030 goals. SDAIA aims to position Saudi Arabia as one of the top 10 countries in data and AI by 2030 and is training 25,000 specialists in these fields.

PIF's investment in sports

The Public Investment Fund (PIF) is the sovereign wealth fund of Saudi Arabia. It was established in 1971 to provide financing support for projects of strategic significance to the national economy. The fund is controlled by Crown Prince Mohammed bin Salman, Saudi Arabia's de facto ruler since 2015.

One of the most notable sports investments by PIF is the establishment of LIV Golf Investments, a division of the fund, which introduced the LIV Golf professional tour. The Saudi PIF backed the inaugural LIV Golf Invitational Series in 2022 with $2 billion in funds, offering the richest golf tournaments in history and attracting star players such as Phil Mickelson, Dustin Johnson, and Sergio Garcia. The series consisted of eight events with a total prize pool of $255 million. The success of LIV Golf led to a merger with the PGA Tour in June 2023, with PIF reportedly investing billions into the new company.

In addition to golf, PIF has made significant investments in football. In 2021, a consortium led by the fund acquired Premier League football club Newcastle United for £300 million. The deal was controversial due to concerns over the lack of transparency and close control by the Saudi government, which has faced criticism for its human rights record. PIF has also invested in other football-related properties, such as a deal to bring Cristiano Ronaldo to Saudi club Al Nassr, which is backed by a PIF subsidiary.

PIF's investments in sports have been accused of "sportswashing," with critics arguing that Saudi Arabia is attempting to improve its international image and distract from human rights abuses. However, supporters of the investments highlight the positive impact on regular people, especially women, in Saudi Arabia, as the country reforms its economy and increases tourism.

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