Saudi Arabia’s sovereign wealth fund is turning homeward.
Handed $40 billion earlier this year to buy global stocks, the Public Investment Fund will plow the same amount into the domestic economy next year and again in 2022. Some of the local investments could be funded by liquidating existing assets, Crown Prince Mohammed bin Salman said in a rare statement last week.
The $347 billion sovereign investor is a key lever for the kingdom’s de facto ruler to revive growth and get his economic master plan, known as Vision 2030, back on track after what may be the deepest recession the world’s largest crude exporter has experienced since 1987. The PIF declined to provide further details on the planned investments.
The fund intends to play a leading role in refocusing the economy toward underdeveloped industries like tourism and diversifying away from oil. The amount it’s set to invest is equivalent to more than 10% of government expenditure in 2021 -- and nearly equal to what the PIF, chaired by the crown prince, spent locally in the previous two years combined.
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