The Public Investment Fund is Set to Place Saudi Arabia on a Path to Increased Growth
Saudi Arabia is to attract local and international opportunities with the inception of the Public Investment Fund. The fund is to promote economic diversification in the country through strategic international and domestic investment. Undoubtedly, the fund will set Saudi Arabia on an increased pace to a significant positive growth curve.
Why the Public Investment Fund
The public investment fund program is one of the initiatives of the Saudi Arabian government. Primarily, the program promotes the diversification of the oil-prone economy through maximization and cultivation of the fund’s investment.
The public investment fund program came to be in 2017 to pioneer Saudi Arabia’s vision 2030. The country foresees that it will be the world’s largest sovereign wealth fund with the capacity to build concrete partnerships that will contribute to the Kingdom’s role in regional and global scenes.
The fund also aims to develop initiatives resting on certain pillars. For instance, developing local projects, launching and supporting major projects, and increasing the fund’s global assets are some of the posts on which the Public Investment Fund rests.
Although initiated in 2017, specific attention grew towards the investment fund in 2015. Stakeholders undertook to establish guidelines to govern decisions and investments geared to building a diversified portfolio for long-term returns.
What are the Likely Effects of the Fund
The Public Investment Fund program has been predicted to be a point for significant growth in Saudi Arabia. The program is quickly making its way to be the most preferred investment partner and the world’s largest sovereign wealth fund in the world.
Late last year, the fund single-handedly raised a $17 billion loan from banks to directly inject the fund into the Kingdom to diversify the largely oil-dependent economy. The fund has previously combined private equity and venture capital to raise revenue. It has also created several companies, resorts, housing communities, parks, and an international airport with the capacity to receive 120 million passengers by 2030.
One can also not leave out the significant role the public investment fund has played in financing the newly proposed clean city, Neom. It has continued to finance the city in line with the Prince of Saudi Arabia’s intention to invest $160 billion in the city come 2030. Indeed, the prospects available to the country are numerous when the tool of the public investment fund is present. One should only hope that the government knows how best to wield the shield that it has created for itself
Conclusion
As it stands, Saudi Arabia is set to overtake India by being the world’s fastest-growing economy in 2023. This achievement is no small feat; it is neither one that occurs by chance. A look at the intent behind establishing the public investment fund will show that the country is dedicated to improving its standard and ensuring continual development and growth for the present and future.
Last Updated on 9 months by News Editor
