PIF governor Yasir Al-Rumayyan
The Public Investment Fund (PIF) will increase assets from SAR 1.5 trillion to SAR 4 trillion, which will be financed from several sources, including returns from the sovereign wealth fund’s investments, state assets and the Kingdom’s giga-projects, according to governor Yasir Al-Rumayyan.
Al-Rumayyan, in this regard, cited the multi-billion dollar NEOM megacity and the Red Sea project, which are recorded at SAR 1 in the fund’s books. “We think in a few years, once parts of these projects get operational, all of this value will go higher,” he added.
He also indicated that the fund will offer some of its private firms for sale in public offerings, which will help generate huge returns.
“The sovereign wealth fund’s divestiture of its 70% stake in Saudi Basic Industries Corporation (SABIC) is an integrative action; the fund wanted cash, while Saudi Aramco needed a giant company that would merge its petrochemicals business portfolio, with its oil and gas operations,” Al-Rumayyan explained.
The PIF constantly mulls offloading its private units, as it has a broad company base and some of these companies should be offered for sale in public offerings in future.
“PIF’s investment strategy comprises seizing the investment opportunity as step one, and the investment divestiture as the last step; a policy adopted by all funds around the world,” the official noted.
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