The Governor of Saudi Arabia’s Public Investment Fund (PIF) said the country’s economic transformation could grow faster than China’s during its rapid growth in the 1980s, 1990s, and early 2000s. Speaking at the Economic Club in Washington, Yasir Al-Rumayyan stressed the need for a strict investment screening process, called a “filtration” system, to make sure investments match the country’s long-term goals.
Al-Rumayyan said PIF’s average internal rate of return rose from less than 2% before 2015 to about 7.2% after a major strategy overhaul when Crown Prince Mohammed bin Salman became chairman. The fund manages assets worth between $925 billion and $945 billion. It aims for $1.075 trillion by the end of this year and hopes to reach $2 trillion, possibly $3 trillion, by 2030.
PIF’s current strategy, running from 2021 to 2025, focuses on 13 important sectors in Saudi Arabia and abroad. Al-Rumayyan said the fund now takes a more active approach in finding and investing in opportunities, including brownfield, greenfield, and financial assets in different sectors.
Beyond money, PIF looks at how investments can boost GDP, create jobs, support local industries, and reduce oil dependence. Al-Rumayyan said Saudi Arabia’s non-oil GDP share has grown to about 53% from 10% in 2015. The total economy rose from under $600 billion in 2016 to around $1.1 trillion today.
The new five-year plan, to be revealed soon, will guide investments through 2030 and beyond. It shows PIF’s strong role in leading the country’s economic transformation. Al-Rumayyan sees PIF as a key investor that drives growth, helps achieve Vision 2030 goals, and supports national development. Overall, PIF’s careful investment strategy and strict screening process will drive Saudi Arabia’s economic transformation. potentially surpassing other nations’ growth trajectories.
