Yasir Al-Rumayyan, Governor of Saudi’s Public Investment Fund (PIF), said that the fund invested 5 billion riyals in four national companies in the contracting sector: Nesma and Partners, Al-Saif, and “Al-Bawani, and Almabani, by increasing their capital to build solid entities in line with the Kingdom’s construction ambitions.
In his opening speech at the PIF Private Sector Forum, Al-Rumayyan stated that the fund aims to invest one trillion riyals in new projects in the region.
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He explained that to support the march of a thriving economy, Crown Prince Mohammed bin Salman pays special attention to involving and enhancing the private sector’s role in developing the national economy and achieving Saudi Vision 2030, which encourages innovation and economic diversification and aims to increase the private sector’s contribution from 40 percent to 65 percent by 2030.
“Within the framework of supporting national development as one of the most important pillars of PIF’s strategy, the fund has developed a strategy to develop 13 strategic sectors in the Kingdom. It also launched initiatives to develop a clear mechanism to involve the private sector as an investor and partner in those sectors. For instance, [real estate firm] Roshn has created opportunities for the private sector by allocating 30 percent of its land to real estate developers to build promising housing,” Al-Rumayyan said.
“We have worked to create the necessary environment to attract both domestic and foreign investment.”
Given the importance of the recycling sector and the work being done to support it, Al-Rumayyan mentioned the establishment of the Saudi Investment Recycling Company (SIRC), and how the fund is establishing specialized companies for joint investment and supporting the growth of the private sector.
Furthermore, PIF’s governor revealed that the fund intends to boost its contribution in increasing local content to 60 percent by the end of 2025.
Yasir Al-Rumayyan, Governor of Saudi’s Public Investment Fund (Photo Credit: SPA)
4 agreements
PIF signed four agreements with local entities to develop the private sector across several strategic industries in the Kingdom. The memoranda of understanding were signed on the sidelines of the inaugural PIF Private Sector Forum in Riyadh.
The agreements included the Local Content and Government Procurement Authority teaming up with PIF to increase the Kingdom’s local content through developing related programs and strategies, reported the announcement.
The sovereign fund inked a contract with the Building Technology Stimulus Initiative under the Ministry of Municipal and Rural Affairs and Housing to improve modern construction methods and their related know-how, besides cultivating the construction sector’s local content.
The third MOU was agreed upon with the Saudi Contractors Authority to follow through on the objectives of the PIF real estate schemes by cultivating the Kingdom’s local contracting sector.
The Federation of Saudi Chambers also partnered with the sovereign fund during the forum to strengthen the relationship between the private sector and the PIF’s current and future endeavors.
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