Saudi fund aims to double assets to $400bn
Finance minister: Financial transparency vital to attract foreign investment
The Public Investment Fund disclosed it plans to double its assets to more than SR1.5 trillion ($400 billion) by 2020 as it outlined targets for investments and returns through the end of the decade.
It will target six key sectors and predicted long-term annual returns of between 6.5 percent to 9 percent according to the plan that was published at the Future Investment Initiative (FII).
Saudi Finance Minister Mohammed Al-Jadaan told the conference that increased financial transparency was vital to attract foreign investment.
“If we are expecting investors to partner with us to take advantage of opportunities to move the economy to 2030, we need to make sure we are giving them what they need, which is predictability, more transparency, more information and the sharing of data,” he said
Masayoshi Son, the founder and CEO of SoftBank of Japan said that now was the time to invest in the high-tech sector because the future prospects of artificial intelligence (AI) and robotics were so positive.
“This is just the start for tech valuations. I would not call it a peak at all, it is just the beginning,” he said.
Son described how Crown Prince Mohammed bin Salman had first talked to him about hightech investment in Tokyo.
“People say that I convinced him to put $45 billion into the fund during a 45-minute conver- sation, but that is not how it happened.
“He already had the idea to go for artificial intelligence, robots and super technology, and we found we had a lot in common. That’s how we created friendship, partnership and a bonding of the mind,” Son said.
He mapped out a future for the business world where artificial intelligence and robotics would become the driving commercial forces.
“Ten years ago, the only technology company in the top ten biggest in the world by market capitalization was Microsoft. Today, there are seven tech companies in that list, and two of them are Chinese,” he said.
“Artificial intelligence will redefine every industry. The Internet is only a small part of the big change. AI will revolutionize all sectors,” he added.
RIYADH: Saudi Arabia on Wednesday revealed plans to double the assets of its sovereign wealth fund as a huge investment gathering in Riyadh made global headlines.