PIF shifts strategy away from mega real estate projects: Report

Logo of Public Investment Fund (PIF)

Saudi Arabia plans to shift the Public Investment Fund’s (PIF) strategy away from large-scale real estate projects, focusing instead on logistics, mining, tourism, artificial intelligence, and data centers, Reuters reported, citing sources.

PIF Governor Yasir Al-Rumayyan said in September that the Kingdom would outline a new strategy within two months, with the current plan running through 2030 and extending toward 2040 and beyond, according to Argaam’s data.

Investment Minister Khalid Al-Falih said on Oct. 28 that it was the right time to signal to the private sector that the government had delivered on its promises and exceeded its targets, adding that it was now appropriate to scale back government and PIF spending and allow private investment to take the lead.

“These assets should now be transferred to the market to observe how they perform under private-sector management,” he added.

Al-Falih also noted that several major projects have reached maturity, including the Red Sea, where several resorts are now operating, and Diriyah Gate and Qiddiya, where hotels are nearing launch, adding that it’s time to bring these assets to market and see how they perform.