Saudi Arabia steers investment strategy towards domestic areas

Saudi Arabia is adjusting its international investment policy in favor of increased domestic focus. Yasir Al Rumayyan, the governor of the Public Investment Fund (PIF), announced at the Future Investment Initiative in Riyadh that the sovereign wealth fund would reduce the proportion of foreign investments from 30% to about 18%. During the conference, dubbed the 'Davos in the Desert,' Al Rumayyan highlighted the country's track record in expanding its domestic economy. Despite this strategic realignment, the volume of the PIF's international transactions continues to grow in absolute terms. The fund's prestigious projects include international sports teams, the entertainment sector, airport infrastructures, and the ride-sharing service Uber. These measures are part of Saudi Arabia's Vision 2030, which aims to reduce the economy's oil dependency and transform the kingdom into a significant global economic player. At last year's conference event, deals worth nearly 18 billion US dollars were concluded, reported the Saudi Press Agency. In recent years, the kingdom has also reduced its spending in favor of increased domestic investments and clarified that foreign fund managers should invest in Saudi Arabia if they wish to continue securing contracts. In U.S. stock trading, the value of the PIF portfolio fell from around 35 billion US dollars at the end of 2023 to 20.6 billion US dollars by June 30, as reported by the Financial Times. The shift in investment strategies is also being adapted by investors, as Al Rumayyan reports: 'In the past, people came to us asking for money. Now we see many who want to invest together with us.' Al Rumayyan also promised ambitious steps to establish Saudi Arabia as a leading destination for companies and investors in the field of artificial intelligence. This technology is considered an economic driving force for the country, which seeks to position itself as a global hub.