PIF Investments

The Public Investment Fund (PIF) is a key driver of the Saudi economy. The sovereign wealth fund is an investor in many sectors within the Saudi economy, but also across the world in industries as diverse as aerospace and agriculture satellites to soccer and everything in between.

PIF’s vast portfolio also mirrors the kingdom’s own ambition to make its mark in several fields and is central to a diversification strategy in line with Saudi Vision 2030. A key strategic move has been to invest in new technologies that will ensure Saudi Arabia is well positioned to take advantage of the new economy, which features space, robotics, artificial intelligence, and high-tech manufacturing.

INVESTING IN THE SPACE SECTOR

As part of its ground-breaking strategy to create new industries, PIF launched the Neo Space Group (NSG), poised to be a national champion for the satellite and space sector, supporting commercial satellite space operations locally and internationally. The group will invest in localisation, technology, start-ups, and knowledge in the space and satellite sector in Saudi Arabia.

“NSG will enhance the space and satellite sector by developing local capabilities and boosting its strategic position within the growing global space economy,” PIF said. “The group aims to develop and enhance commercial space operations in Saudi Arabia, providing innovative satellite and space solutions locally and globally. It will invest in local and international assets and capabilities, as well as promising venture capital opportunities, to catalyse the advancement and localisation of sector-specific expertise.”

In February, PIF launched Alat, aimed at making the kingdom a global hub for sustainable technology manufacturing that focuses on advanced technologies and electronics. It aims to create 39,000 direct jobs by 2030, and achieve a direct non-oil GDP contribution of USD 9.3 billion by that time.

“Alat will focus on manufacturing products that serve local and international markets within seven key strategic business units: advanced industries and semiconductors, as well as smart appliances, smart health, smart devices and smart buildings, in addition to next generation infrastructure,” PIF noted.

Alat will also enable the private sector through its strategic partnerships with leading international players in manufacturing and technology, which will enhance the economic ecosystem locally and regionally.

“Alat will manufacture more than 30 product categories that will serve vital sectors,” PIF noted. “These include robotic systems, communication systems, advanced computers and digital entertainment products, as well as advanced heavy machinery used in construction, building, and mining.”

CREATING AN EV ECOSYSTEM

Late last year, PIF and the Saudi Electricity Company (SEC) debuted the Electric Vehicle Infrastructure Company in a 75:25 joint venture.

The new company plans to deliver electric vehicle (EV) fast-charging infrastructure across the kingdom, further unlocking the local automotive ecosystem and accelerating the adoption of EVs. It plans to establish presence in more than 1,000 locations, installing over 5,000 fast chargers by 2030 in cities across Saudi Arabia and on the roads that connect them, in line with applicable regulations and standards.

The company will boost the country’s automotive ecosystem, through collaboration with EV companies, by supplying the necessary charging stations to meet future demand. It also aims to promote private sector participation in the development of its network of charging stations and support the localisation of R&D and manufacturing of technologically advanced materials, ultimately building domestic expertise and resilience.

The other leg of that strategy came weeks later, when PIF and South Korea’s Hyundai Motor Co. signed a joint venture to establish a highly automated vehicle manufacturing plant in Saudi Arabia. PIF will hold a 70% stake in the new joint venture with Hyundai holding the remaining 30%.

Hyundai will also act as a strategic technology partner to support the development of the new manufacturing plant by providing technical and commercial assistance. The total investment for the project is estimated to exceed USD 500 million.

The joint venture will manufacture 50,000 vehicles per year, including both internal combustion engine (ICE) and electric vehicles (EV). The plant groundbreaking is planned for 2024, and production is expected to begin in 2026.

PIF had also recently announced the launch of Tasaru, the National Automotive and Mobility Investment Company, dedicated to localising automotive supply chains and manufacturing capabilities.

These PIF investments are helping lay the foundation of a new future-ready Saudi economy.