In line with the objectives set forth in the Kingdom’s Vision 2030, the Saudi Public Investment Fund (PIF) has officially launched the ‘Al Balad’ development company. Led by Saudi Crown Prince Mohammed bin Salman, this strategic initiative aims to rejuvenate Jeddah’s historic region and position it as a globally acclaimed tourist destination.
The newly established company is dedicated to improving the infrastructure of Jeddah’s Al Balad region while overseeing the restoration of its historic buildings. Additionally, it will focus on developing a range of facilities including recreational, residential, commercial, hotel, and office spaces. The ambitious project covers a vast area of approximately 2.5 million square meters, with a construction scope totaling 3.7 million square meters. It aims to deliver around 9,300 residential units, 1,800 hotel units, and an expansive 1.3 million square meters of commercial and office space.
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In a collaborative effort with the private sector and specialized entities, the newly formed company aims to develop the infrastructure of Jeddah’s historic region, adhering to the highest standards of urban planning for such areas. With a strong focus on environmental sustainability and the preservation of the unique heritage of ‘Historic Jeddah’ — a UNESCO World Heritage site — the company strives to transform it into an enticing tourist destination for visitors worldwide.
In addition to its cultural significance, the company recognizes the economic potential of the region. To contribute to its economic development, the company will present numerous investment opportunities and attractive business options, catering specifically to the residents of Jeddah.
Immersive experience
Al Balad development company is dedicated to creating an immersive experience that allows visitors to delve into the rich cultural and historical dimensions of the region. By providing a harmonious and integrated environment that is alluring for both living and working, as well as cultural and recreational activities, the company aims to elevate the quality of life in the region and enhance visitors’ overall experience.
The establishment of Al Balad aligns seamlessly with PIF’s strategic vision to foster economic diversification by focusing on the development and empowerment of pivotal sectors, including real estate and tourism. This strategic move is in perfect harmony with the overarching goals of Vision 2030, aimed at achieving sustainable growth and unlocking the full potential of the local economy.
SAR2.234 trillion in assets
The Fund’s managed assets witnessed an exceptional growth rate of 12.8 percent in the past year, reaching SAR2.234 trillion by the end of the year, a significant increase compared to SAR1.98 trillion in 2021.
Since the inception of Vision 2030, the Fund has consistently delivered an annual total shareholder return of 8 percent, demonstrating its ability to generate favorable returns and provide value to its stakeholders.
In 2022, the Fund experienced substantial expansion, with the addition of 666 new staff members, representing a remarkable 33 percent increase. By the end of the year, the Fund’s dedicated workforce reached a total of 1,940 professionals, further enhancing its capabilities and expertise.
Significant investments
PIF has recently announced a significant investment of SAR120 billion in strategic sectors during the year 2022.
In its annual report for 2022, the Fund highlighted its successful establishment of 25 new companies. This strategic move has enabled PIF to further expand its portfolio and diversify its investments, contributing to its overall growth and long-term sustainability.
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