SAUDI'S PIF AIMS FOR $ 400BN IN ASSETS BY 2020
Saudi Arabia’s Public Investment Fund ( PIF) plans to increase its assets under management to SAR1.5 trillion ($ 400bn) by 2020. The goal was laid out by the PIF on the second day of an international conference in Riyadh in October. The sovereign wealth fund also published its first comprehensive business programme, outlining targets for investments and returns for 2018- 2020. The PIF is expected to receive proceeds from the planned sale of a 5 per cent stake in state oil company Saudi Aramco next year. It currently has around $ 230bn of assets under management. The fund's other objectives include creating 20,000 direct domestic jobs and 256,000 construction jobs by 2020. This would help increase its contribution to Saudi Arabia’s gross domestic product from 4.4 per cent to 6.3 per cent. The fund's investments will be in traditional sectors like real estate and infrastructure but also new areas through the establishment of companies such as the Saudi Arabian Military Industries Company and the Saudi Real Estate Refinancing Company.
One of its biggest tasks will be the delivery of a $ 500bn project to build a business and industrial zone extending into Jordan and Egypt, announced at the start of the conference.