Middle-east Arab News Opinion | Asharq Al-awsat

Saudi Arabia Reinforces Stage of Reducing Dependency on Oil via PIF | ASHARQ AL-AWSAT English Archive 2005 -2017
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Saudi King Salman (C) attends the inauguration ceremony of several energy projects in Ras Al Khair, Saudi Arabia, November 29, 2016. Saudi Press Agency/Handout via REUTERS

Riyadh- The approval granted by Custodian of the Two Holy Mosques King Salman bin Abdulaziz over allocating USD26.6 billion of reserves to the Public Investment Fund (PIF) has boosted the investment force of the fund. This will make the PIF one of the most influential government funds in the world.

The fund commenced to take serious steps towards reinforcing investment and new partnerships that target technology, industry, nutrition and transport. In 2017, new investments are expected to take place not to mention that 2016 was one of the most vital years.

Through this fund, the kingdom seeks diversifying the economy and finding new income resources that are more sustainable. In the same context, up to USD100 billion are expected to be invested within the Saudi Vision 2030 in different timelines.

In 2015, PIF started to remarkably target technology contributing with around USD45 billion at SoftBank Vision Fund, which will play a major role in the field’s investment map.

Saudi Arabia also started to expand investment in technology through noon.com and Uber while PIF announced during this week that it will acquire a 50% stake of Adeptio Group LLC, which now owns 67% of Kuwaiti Food Co. Americana.

These positive steps taken by Saudi Arabia on the level of the PIF indicate that the kingdom is investing in the future and leaving its mark on the economy diversification map which will reduce dependency on oil during the upcoming years.

Moreover, PIF is forecast to become one of the biggest sovereign funds worldwide—the fund’s investment strategy will mainly focus on a number of promising opportunities in local and international markets.