Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), plans to have more than US$1 trillion in assets under management (AuM) by 2025 as part of its five-year strategy.
The Vision Realisation Program (VRP) 2021-2025 was approved at a recent board meeting chaired by crown prince Mohammed bin Salman.
Other measures announced in the plan include a minimum annual investment of $40 billion in domestic projects, a cumulative contribution of $320 billion to non-oil GDP through its portfolio companies and the creation of 1.8 million indirect and direct jobs.
The crown prince has used the fund as a central plank of his economic reforms and as a means to attract international investment to the kingdom. Over the last four years, its assets under management (AuM) have tripled to nearly $400 billion.
A major contributor to the fund’s assets was the initial public offering of the state-run oil company, Saudi Aramco, in December 2019, which raised more than $25 billion. While unveiling the five-year plan, Mohammed Bin Salman announced that more Aramco shares are likely and the cash will be transferred to the PIF to “be re-injected inside and outside the kingdom of Saudi Arabia for the benefit.
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