The Council of Ministers granted the PIF license to independently fund new firms both inside and beyond the Kingdom in July 2014, either in collaboration with the public and private sectors or on its own, without the council’s prior approval.
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In March 2015, the Ministry of Finance subsequently transferred the operation of the PIF to the Council of Economic and Development Affairs (CEDA). As part of this transition, a new PIF board was chosen, headed by Crown Prince Mohammed bin Salman.
According to the board, the PIF is in line with the government’s Vision 2030 program, which aims to diversify the Saudi Arabian economy.
The PIF improved its financial position and supported its investments in foreign companies like Uber and Tesla by receiving cash injections from the Saudi Central Bank, issuing debt, and reaping the benefits of the privatization of Saudi state assets.
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The PIF purchased Saudi Aramco’s 4% ownership holding in 2022. Saudi Aramco is a state-owned oil company. A similar transfer of ownership was performed following this one in 2023 as part of the fund’s plan to increase the amount of assets under management to more than $1 trillion by 2025.
The second 4% stake’s anticipated value in 2023 was $78 billion. In keeping with the primary goal of the PIF, which is investment diversification.
What companies are owned by PIF?
How many companies are there in PIF? PIF has founded 77 businesses and created more than 500K direct and indirect jobs in recent years. PIF made local investments totaling SAR 311 billion between 2017 and 2020.
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