KSA's Public Investment Fund Set For A Domestic Refocus

Yasir Al-Rumayyan, governor of Saudi Arabia's Public Investment Fund (PIF), has revealed that the sovereign wealth fund plans to cut its international investment share by nearly a third, with it aiming to align its strategy more closely with the domestic economy.  

Speaking at this year’s edition of the Future Investment Initiative (FII) conference in Riyadh, Al-Rumayyan said that the PIF, which manages about US$930 billion in assets, aims to slash its overseas investment allocation from the current 30 percent to between 18 and 20 percent. 

He added that this plan comes in support to Saudi Arabia’s economic diversification strategy being led by Crown Prince HRH Mohammed bin Salman Al Saud. Recently, the fund reduced stakes in several global companies, including BlackRock, Carnival Corporation, and Live Nation. 

“We’re more focused on the domestic economy, and we’ve been achieving and doing many significant projects,” Al-Rumayyan said, adding that investors are increasingly proposing co-investment opportunities rather than solely seeking the PIF’s capital. 

However, Al-Rumayyan did not specify a timeline for reaching the revised international investment target, although the PIF aims to reach $2 trillion in assets under management by 2030. 

According to filings with the US Securities and Exchange Commission, PIF’s US-traded stock holdings dropped from $35 billion at the close of 2023 to $20.5 billion in March, later stabilizing at $20.6 billion in the second quarter of this year. 

Over the past decade, the fund has made a range of investments, including a $45 billion stake in SoftBank’s Vision Fund, $20 billion in Blackstone’s infrastructure fund, as well as acquisitions such as Newcastle United Football Club and projects like LIV Golf. 

At FII, addressing an audience of over 7,000 delegates and 600 speakers, Al-Rumayyan introduced the theme of the event this year -- “Infinite Horizons: Investing Today, Shaping Tomorrow” -- as a framework to tackle interconnected global challenges through purposeful investment. 

“Over seven years, FII has facilitated more than $125 billion in deals, demonstrating what’s possible when global leaders come together with shared goals,” Al-Rumayyan stated. 

Al-Rumayyan also underscored the concept of "investing with purpose," which focuses on sustainable, long-term investments rather than short-term gains. "This approach demands a shift to sustainable growth that benefits both economies and societies," he explained, calling for targeted investments in sectors like green technologies, healthcare, and youth engagement.