PIF Governor Predicts Saudi Arabia’s Economic Transformation to Surpass China’s
By Anas Alyusuf
WASHINGTON — Governor of the Public Investment Fund, Yasir Al-Rumayyan, believes that Saudi Arabia’s economic transformation has the potential to exceed what China achieved in the 1980s, 1990s, and early 2000s. He credits this progress to the sovereign investor’s rigorous deal screening process and focus on broader impact beyond financial returns.
Strategic Growth and Targets
Al-Rumayyan revealed that PIF’s average internal rate of return has significantly improved, reaching about 7.2% after a strategic reset in 2015. The fund currently manages assets totaling around $925 billion to $945 billion, with a target of $1.075 trillion by the year-end and a long-term goal of at least $2 trillion by 2030, potentially reaching $3 trillion.
Proactive Investment Strategy
PIF’s current strategy for 2021–25 focuses on 13 sectors domestically and internationally, with a proactive approach to identifying opportunities across various asset classes. The fund plans to announce its next five-year strategy soon, extending its vision to 2040 and beyond.
Focus on Impactful Investments
Al-Rumayyan emphasized that returns are just one aspect of PIF’s investment criteria. The fund evaluates contributions to GDP, job creation, local content, and economic diversification away from oil. Saudi Arabia’s non-oil GDP share has increased to 53%, with the overall economy growing from under $600 billion in 2016 to about $1.1 trillion today.
Organizational Growth and International Presence
PIF has expanded from 30 staff in 2015 to 2,964 employees today, with offices in Riyadh, New York, London, Hong Kong, Paris, Beijing, and regional offices in Cairo, Amman, Manama, and Muscat. The fund’s subsidiaries also have a presence in San Francisco to tap into venture and technology ecosystems.
Impact Across Sectors
Al-Rumayyan highlighted PIF’s involvement in sectors beyond oil and gas, such as technology investments through Aramco. He mentioned Aramco’s low lifting cost and its focus on technology to enhance efficiency and production capacity.
Investment in Sports and Tourism
Al-Rumayyan discussed PIF’s involvement in sports, particularly in golf and football, as well as the success of Saudi tourism in surpassing its targets. He emphasized the fund’s commitment to investing $600 billion in the United States and encouraged partnerships to boost local content and attract foreign direct investment.
