Here are details of PIF's strategy for next 5 years, target sectors
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The Public Investment Fund’s (PIF) board of directors, chaired by Crown Prince Mohammed bin Salman, Deputy Prime Minister and Chairman of the Council of Economic and Development Affairs, approved the fund’s strategy for the next five years to 2025.
The strategy will enable the PIF to build on its successes and solid foundation since 2016, to ensure that it is the preferred partner for innovative investors and firms across the world.
The strategy, which contributes to the Saudi economy’s development and diversification measures, focuses on 13 strategic sectors at the local level, which constitute a priority for the fund, as the following table shows:
Aerospace and Defense
This initiative aims at being in the aerospace and defense value chain to benefit from expansions in the local and global markets.
It also aims to transform the Kingdom into a regional center for maintenance, repair, and operation services to meet the local and regional needs in the two sectors, given their strategic importance to the country.
It aims to enhance the Kingdom's capabilities in the automotive field, for its high impact on the GDP.
It also targets contributing to the growth of non-oil GDP and employment, as the development of the auto industry at the regional level will ensure opportunities to replace import.
Transport and Logistics
Logistics is one of the central sectors to the Vision 2030.
Thus, this initiative aims to contribute to improving the connectivity in the logistics infrastructure and its operations across the Kingdom, increasing the overall quality, providing services in the required time, raising the logistics sector’s capabilities, and boosting private sector participation in logistics industries.
Food and Agriculture
This initiative is aimed at diversifying the food imports sources, in addition to achieving food security and sustainable local food production system across the Kingdom.
The global food packaging market is estimated at about SAR 9 trillion. This market is currently witnessing a change in trends, as the PIF’s initiative targets stimulating the growth of the food and agricultural sector in the Kingdom, strengthening its position as the halal product distribution center for the world, benefiting from the Fund's existing and new partnerships with leading firms in various fields.
Construction and Building Components and Services
Strengthening the Kingdom's position as a leader in the construction services sector to support REITs projects’ aspirations.
Recreation, Tourism, and Sports
It aims to diversify and enrich the tourism and entertainment experience in the Kingdom, to create a more vibrant society.
The Kingdom is currently focusing on developing the entertainment and tourism sector by creating new destinations in order to boost domestic tourism, and reach the specific target for the number of tourist visits with residency by 2030.
The sports sector has also an effective economic and social importance at all levels, in which the PIF works to discuss and evaluate investment opportunities, in line with its investment orientations and evaluation criteria.
It aims to support the growth of leading financial services entities, and enable transformation into a cashless society.
It also targets to contribute to PIF’s ambitions aligned with the Financial Sector Development program, through its work with the Saudi Central Bank (SAMA), the Fund's affiliated firms, the Saudi Industrial Development Fund (SIDF), and the other relevant bodies in this regard.
In addition, the initiative aims to support the National FinTech Strategy (NFTS) as a key enabler of the Vision 2030.
Development of the following projects: NEOM, the Red Sea, Qiddiya, and ROSHN.
Utilities and Renewable Energy
The importance of the utilities and renewable energy has increased dramatically in the world today, as the United Nations identified "climate action" and "clean and affordable energy" as sustainable development goals for the world until 2030.
This initiative will enhance the Kingdom's domestic capacity in the sector and adopt appropriate technologies to reduce the carbon footprint, while increasing financial returns and the developmental impact.
Metals and Mining
Themetals and mining sector is one of the most promising sectors in the Kingdom, as it has abundant and diversified reserves.
Thus, the Kingdom seeks to increase the sector’s contribution to the economy under the Vision 2030, to make mining the third pillar of the Saudi economy, besides oil and gas and petrochemicals.
The Kingdom aims to become a major producer and exporter of fertilizers, and the PIF will, through Maaden, enable the Vision 2030 goals for the sector.
Healthcare is one of the most important priority sectors in the Kingdom, and there are huge opportunities for growth in this sector.
Thus, the PIF aims to play a major enabling role for the sector, and to advance the use and harmonization of healthcare services and products in cooperation with the private sector.
Consumer Goods and Retail
The initiative seeks to support Noon to become the main digital platform for the Arab world in e-commerce.
It will provide an integrated system of digital services on basic e-commerce, including financial technology (Fintech) services, digital consumer services, digital entertainment and media, and advertisements.
The PIF also aims to enhance the size of the e-commerce and logistics ecosystem in the region, with plan to continuously raise the delivery quality and order fulfillment.
Telecoms, Media, and Technology
The initiative aims to develop innovation capabilities in the Kingdom through technology localization in addition to communications and media sector’s development, given their importance in the quality-of-life program.
The PIF seeks to continue supporting its companies in the technology, media and communications sectors, in order to empower the Kingdom to become a competitive global center.
The PIF’s strategy 2021-2025 aspires to maximize the Kingdom's revenues by investing in vital and stimulating domestic projects.
Investing in local sectors will achieve growth potential for the Kingdom's priority sectors, and this will have an economic impact on the GDP growth, employment, boosting local content, providing opportunities for the private sector’s prosperity, in addition to enhancing the quality-of-life as well as the Kingdom's position on the global scene.
The PIF’s investments for the next phase are based on its four principles:
- Drawing features of the future.
- Leadership in innovation.
- Excellence in building relationships.
- Inspiring the world.
The PIF’s program also aspires to achieve a group of goals by 2025, the most important of which are:
- Raise the fund's assets to SAR 4 trillion.
- Pump at least SAR 150 billion annually into the domestic economy.
- Create 1.8 million direct and indirect jobs opportunities.
- Maximize local content level to 60%.
- Contribute to the non-oil GDP with a value of SAR 1.2 trillion.