Saudi Public Investment Fund… Global Influence
Translation of a Business Insider article
The sovereign wealth fund invests in everything from Uber and Blackstone to Heathrow Airport and LIV Golf.
In 2015, Crown Prince Mohammed bin Salman became chairman of the sovereign wealth fund, which was established by a former king in 1971 at a time when it was ready for transformation.
The Public Investment Fund is no longer just a slow-moving cog in the state machinery; it was poised to become an investment giant with a global presence.
This is a mission that Crown Prince Mohammed bin Salman did not hesitate to pursue. Under the leadership of Governor Yasir Al-Rumayyan, the Public Investment Fund has officially intensified its mission to invest in globally prominent assets in recent years to help achieve its goal of reducing Saudi Arabia’s economic dependence on oil.
This mission, which is a core part of an ambitious program called Vision 2030, partially depends on how successful the Public Investment Fund is in generating returns from its large bets abroad—and leveraging these bets to build new, hot industries at home.
“Crown Prince Mohammed bin Salman’s personal ambition is to make Saudi Arabia a prominent and respected economy in the post-oil era,” said Stephen Hertog, associate professor at the London School of Economics, to Business Insider.
He added, “The Public Investment Fund is his most important tool in this endeavor.”
The Saudi Public Investment Fund has heavily bet on names like Uber, led by CEO Dara Khosrowshahi. Spencer Platt
A look at the Public Investment Fund’s portfolio offers a glimpse into some of the most productive names in global business.
In technology, it has pumped $3.5 billion into Uber, poured $45 billion into the SoftBank Vision Fund, acquired a 60% stake in Tesla rival Lucid, and become the largest owner of augmented reality startup Magic Leap.
Additionally, it has invested billions into LIV Golf, led a $415 million acquisition of Newcastle United, supported Blackstone’s infrastructure fund with $20 billion, and invested in Carnival, the world’s largest cruise operator. In June, PIF expanded its stake in Heathrow Airport in London.
Figures published by GlobalSWF in July, a data company tracking sovereign wealth fund activity, found that PIF deployed more capital in the first half of 2024 compared to all other state-owned investors, who collectively invested around $100 billion during the six-month period.
For global companies, fund managers, and bankers, Saudi Arabia’s wealth has been a major draw at a critical time. While other investors have been cautious amid a high-interest-rate environment, the kingdom has maintained its capital flow.
This is partly because the fund has set a $2 trillion assets-under-management target by the end of the decade and is racing against time to meet the deadline for its ambitious Vision 2030 program.
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