Saudi Arabia’s sovereign wealth fund has committed to spending at least $40bn annually in the domestic economy over the next five years as it prepares to break ground on its latest mega-project.
Yasir al-Rumayyan, governor of the Public Investment Fund, told the Financial Times that after 2025, “these amounts, maybe, will grow higher” as he described the investment vehicle becoming the “engine of economic growth” in the kingdom. The PIF invested about $15.5bn in the kingdom in 2019.
Mr Rumayyan was speaking days after the PIF unveiled its most ambitious project to date — the creation of a futuristic, carbon-free city that will stretch along a narrow, 170km strip of Neom, Crown Prince Mohammed bin Salman’s flagship development. The cost of infrastructure for the city, known as “The Line” is expected to be between $100bn and $200bn, with the PIF its cornerstone investor.
Mr Rumayyan said financing for the project would come through a combination of bonds, loans and equity from the $400bn PIF, as well as outside investments.
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