In an event carried out on Sunday January 24th, 2021 in the presence of eight ministries and executives, Saudi Crown Prince Mohammed bin Salman (“MbS”) unveiled the details and targets of the new Strategy Plan “PIF Program 2021-2025”, in line with Vision 2030.
By doing so, he confirmed some of the key milestones that the previous plan, PIF Program 2018-2020 had aimed at, and achieved: US$ 400 billion AuM, an 8% Total Shareholder Return, 20% share of assets in “new sectors”, 18% of portfolio in international assets and 331,000 direct and indirect jobs created (half of them by Uber).
The new PIF Program 2021-2025 sets up some equally ambitious goals, as a half-point through the US$ 2 trillion to be reached by 2030: US$ 1.07 trillion AuM, US$ 40 billion to be invested every year within the Kingdom (which seems attainable given the scale of the giga-projects), a 21% in new and growth sectors (1% up) and – wait for it – 1.8 million direct and indirect jobs to be created.
According to Reuters, the jobless rate hit a record high 12.9% in the second quarter of 2020, and the IMF expected the Saudi economy to decline a 5.4% in 2020, despite the positive picture painted by PIF.
In the meantime, SAMA, now known as Saudi Central Bank, changed its Governor back to Fahad Al-Mubarak, who held the post in 2011-2016, and is adopting a more passive role as it keeps financing the growth of PIF. Lots of changes for the Kingdom, as it prepares to host the Future Investment Initiative (FII, dubbed as Davos in the Dessert) later this week.
With US$ 400 billion AuM, PIF becomes the world’s eighth largest SWF, ahead of Qatar’s QIA. According to our forecasts included in our 2021 Annual Report, PIF would rise to the world’s second largest fund, US$ 45 billion short of Norway’s NBIM. The Saudi fund received the “Fund of the Year” award thanks to its bold vision and transformation, as well as its growth and performance during 2020.