Saudi Arabia aims to triple Public Investment Fund assets by 2030

Saudi Arabia is on track to enhance the assets of its Public Investment Fund (PIF), projecting a considerable increase to $2.67 trillion by the year 2030. This target reflects a significant growth of $800 billion compared to earlier forecasts, underscoring the fund's increasing strategic importance and strengthening financial position. In the context of the Saudi Arabia Vision 2030 initiative, launched in 2016 to diversify the national economy, these expectations signify progress towards economic reforms. Notably, the fund has already played a crucial role in job creation, adding 1.1 million jobs, a marked increase from just 77,700 in 2021. Additionally, nearly half of PIF’s portfolio is directed towards local companies involved in ambitious projects, such as NEOM and Diriyah, which are pivotal to the kingdom’s future economic strategy. While achievements in several social metrics have exceeded targets, such as female workforce participation and home ownership, challenges remain. Saudi Arabia continues to struggle with attracting foreign direct investment (FDI), witnessing a 19% decline down to $20.7 billion in 2024, which marks the third consecutive year of decline. To address this, the kingdom aspires to draw $100 billion annually in FDI by 2030. The non-oil sector's contributions to the GDP have reached a significant milestone, accounting for 51% in 2024, further emphasizing the need for diversification away from oil dependency. This comprehensive strategy aims not just at financial growth but also at enhancing overall economic stability for the future of Saudi Arabia.