PIF Governor Yasser Al-Rumayyan
The Public Investment Fund (PIF) realized a 40% profit from SAR 35 billion worth of investments during the COVID-19 pandemic, said Governor Yasir Al-Rumayyan.
In an interview with Thmanyah podcast, the top official explained that a plan was set for investment during that period, which included determining the strategic position, noting that the fund invested in some companies at that stage and did not exit from them. This is in addition to seizing opportunities and financial bailout for companies through capital increase.
Several assets helped raise the fund's returns between 7- 8% currently, including those in the Saudi market, which rose strongly, in addition to some investments in international markets, Al-Rumayyan stated.
He pointed out that, several of the fund's assets were non-performing loans before 2015 and were directed to development purposes only, and not to areas with investment or commercial feasibility.
He indicated that the investment selection is currently going through many stages before making a decision, stressing that Crown Prince Mohammed bin Salman relies on evidence supported with opinions, rather than absolute opinions that do not depend on evidence, including previous experience and supporting data.
Al-Rumayyan also stressed that the fund cannot enter into any investment without knowing how to exit from it, even renewable investments. He highlighted that exist does not necessarily mean the failure of investment, but might be beneficial.
As for the value of mega projects such as NEOM, Red Sea and Qiddiya, the Governor confirmed that they are registered in books with one riyal, indicating that it will be calculated after the projects start commercial operation and cash flows begin, or through selling part of the land.
Al-Rumayyan stressed that the fund does not overvalue any of its assets, as it follows a very conservative approach in evaluating assets.
The local content is targeted to reach 60% of the projects, said Al-Rumayyan, noting that the PIF as a driver of the Saudi economy must have investments in new things, of which the local content is part. Investments must also have a return of 7% at least.
He added that the economic multiplier of the fund’s projects and Shareek Program should be more than 100%, indicating that most of the previous investments, albeit fluctuating, were less than 100%.
He further said that there is a detailed strategy for the fund's assets to reach $3 trillion by 2030.
Any company established by the fund aims to be offered for subscription in the Saudi market, noting that the number of the fund's subsidiaries reached 85, with 50 companies founded by the PIF.
The number of board members in subsidiaries reached 450, who are chosen according to their expertise, skills and other special needs of those companies.
Meanwhile, the number of the fund's employees was less than 40, while it is currently close to 1,800, said the Governor, adding that the occupancy rate in digital cities reached 98%.
The fund placed entertainment and sports among its strategic sectors, Al-Rumayyan said, adding that investment in the electronic games sector will be one of the best choices in terms of returns.
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