Public Investment Fund

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The Public Investment Fund ( PIF ; Arabic صندوق الاستثمارات العامة, DMG Ṣundūq al-Istiṯmārāt al-ʿāmma  'Public Investment Fund') is a sovereign wealth fund of Saudi Arabia . It is one of the largest sovereign wealth funds in the world, with total assets estimated at $ 320 billion. It was established in 1971 for the purpose of investing on behalf of the government of Saudi Arabia. After initially pursuing a conservative investment policy and primarily providing loans for national development projects, he has since grown into a global investor. As part of its Vision 2030 development plan, the government plans to build the Public Investment Fund into the largest sovereign wealth fund in the world.

The fund is headquartered in Riyadh . The current chairman is the Saudi Crown Prince Mohammed bin Salman , who has a decisive influence on his decisions.

history

The Public Investment Fund was founded in 1971 by royal decree to finance projects of strategic economic importance. Since its inception, the PIF has been the kingdom's main line of investment and has played an important role in funding major projects in the country, including in the petroleum refining , fertilizer , petrochemical and electricity sectors . In July 2014, the Council of Ministers gave the PIF authorization to fund new ventures inside and outside the UK independently or in collaboration with the public and private sectors without the Council's prior consent.

In 2015, supervision of the fund was transferred from the Ministry of Finance to the Council for Economic Affairs and Development, which was established in 2014. Following these changes, the Board of Directors took steps to improve its investment skills and allow the Fund to manage a broader portfolio of current and new assets to ensure the country can modernize its economy and become independent of oil prices through foreign investment . The aim is to diversify state resources and the economy and to contribute to the development of strategic sectors.

Investments

Starting in 2015, the PIF made a number of significant investments, including in July 2015 the acquisition of a 38 percent stake in the South Korean company Posco Engineering & Construction Co. In July 2016 the fund acquired 5% of the shares in the company Uber . Together with the Japanese company Softbank , it is involved in the VisionFund, which is to invest over 100 billion US dollars in technology companies.

In March 2016 it was announced that ownership of Saudi Aramco would be transferred to the PIF. By selling shares, the Public Investment Fund is to become the largest sovereign wealth fund in the world.

On May 20, 2017, during the Saudi CEO Forum, which was part of President Donald Trump's official trip to Saudi Arabia , the Public Investment Fund announced plans to invest $ 40 billion in infrastructure projects, primarily in the US USA . Deals were concluded with various US companies.

On July 31, 2017, PIF announced that it would launch a Red Sea project to build over 50 islands to expose 125 miles of coastline for luxury beach resorts to be built. This is supposed to promote tourism in Saudi Arabia. In addition to the PIF, private investors should also be involved.

On January 29, 2019, Saudi Arabia announced the formation of a closed stock corporation called NEOM. The goal of this company, which is wholly owned by the sovereign wealth fund PIF, is to develop the new Neom Economic Zone , which is expected to raise $ 500 billion.

After Jamal Khashoggi's assassination in 2019, the fund paid a New York PR firm $ 120,000 a month to avert diplomatic damage to the Saudi government.

Web links

Individual evidence

  1. ^ Public Investment Fund (PIF) - Sovereign Wealth Fund, Saudi Arabia - SWFI. Retrieved November 10, 2019 .
  2. ↑ Gulf states are becoming more adventurous investors . In: The Economist . June 15, 2019, ISSN  0013-0613 ( economist.com [accessed November 10, 2019]).
  3. ^ PIF - Public Investment Fund. Retrieved November 10, 2019 .
  4. ^ Saudi's refine blueprint for post-oil economy. April 26, 2016, accessed November 10, 2019 .
  5. ↑ Public Investment Fund Program | Saudi Vision 2030. Retrieved November 10, 2019 .
  6. ^ SoftBank Group Corp. to Establish SoftBank Vision Fund | SoftBank Group Corp. Accessed November 10, 2019 .
  7. ↑ Saudi Arabia's Vision 2030. Accessed November 10, 2019 .
  8. ↑ Julia Manchester: Blackstone, Saudis set to invest $ 40 billion in primarily US infrastructure. May 20, 2017, accessed November 10, 2019 .
  9. ^ Rob Hodgetts: Saudi Arabia launches Red Sea beach resort project. August 3, 2017, accessed November 10, 2019 .
  10. ↑ UPDATE 1-Saudi NEOM set up as joint stock company run by state fund - SPA . In: Reuters . January 29, 2019 ( reuters.com [accessed November 10, 2019]).
  11. ↑ Saudi Arabia fund hires PR firm in the wake of Khashoggi murder | Fin ... March 25, 2019, accessed November 10, 2019 .