PIF Private Sector Forum – New Insights and Direction
SBJBC’s Attendance at the PIF Private Sector Forum
The Saudi British Joint Business Council (SBJBC) was proudly represented at the recent Public Investment Fund (PIF) Private Sector Forum in Riyadh. The representation included productive engagement with key PIF stakeholders and portfolio companies, including Jerry Todd (Head of PIF National Development Program). SBJBC’s presence at this invitation-only event underscored the continued importance of Saudi British business relations.
Event Summary
The third edition of the PIF Private Sector Forum on 12-13 February 2025 in Riyadh brought together approximately 12,000 delegates, predominantly from Saudi Arabia. Most of PIF’s 99 portfolio companies were represented, including all the giga projects and some of PIF’s British investments, such as Newcastle United and Rocco Forte Hotels. The event’s structure included panel sessions, sector-specific workshops, and dedicated spaces for procurement specialists, facilitating meaningful business connections and opportunities. The forum serves as a bridge between the PIF, its subsidiaries, and private enterprises, helping to reinforce partnerships to accelerate the Kingdom’s economic diversification.
PIF is the investment engine driving economic transformation in Saudi Arabia. It has an ambitious program to deliver Vision 2030, investing in projects, companies, and partners to diversify the Kingdom’s economy while stimulating growth in all major sectors. This is designed to create new opportunities for investment and employment. PIF actively partners with innovative companies globally to accelerate their growth and transfer the technology and knowledge needed to build modern ecosystems in Saudi Arabia. Since 2017, the fund has established 99 portfolio companies and continues to drive for an increasingly sustainable economy through strategic investments and partnerships across both the Saudi public and private sector. This helps lay the foundation for local and international partners to invest in the Kingdom.
Abdullah Alhussaini, Senior Director at PIF, stated that the Forum witnessed the signing of 140 agreements valued at approximately SAR 14 billion. Participation from over 100 PIF companies saw an increase from 88 the previous year and from nearly 40 in the first edition, highlighting continuous development for PIF. Collaborations between private sector firms at the forum demonstrated PIF’s capacity to play a pivotal role in strengthening the private sector through new agreements between PIF subsidiaries and private sector firms. At the forum, the Minister of Investment Khalid Al-Falih said that the Saudi economy has attracted FDI worth $240 billion, an amount that has doubled since the launch of Vision 2030 in 2016.
PIF’s Strategic Direction
PIF has outlined a clear strategic vision prioritising domestic development while maintaining strategic international investments. Currently managing assets worth US$930 billion, PIF plans to reduce its international investment portfolio from 30% to 18-20%, emphasizing its commitment to domestic growth. The fund has set an ambitious target to increase the private sector’s share of GDP to 65% by 2030, focusing on development projects across 13 key industry sectors. The PIF plays a pivotal role in this transformation by fostering an attractive investment climate and establishing new economic sectors, such as the King Salman automotive cluster at King Abdullah Economic City (KAEC).
Minister of Economy & Planning Faisal Alibrahim emphasized PIF’s role as a catalyst for economic transformation. While the fund maintains its focus on investment returns, it has demonstrated a willingness to disrupt traditional business models, particularly in sports, entertainment & culture, advanced manufacturing, and real estate sectors. This approach aims to create new opportunities and build local supply chains while maintaining financial sustainability.
Key Insights from Engagement with PIF
Investment and Partnership Opportunities
PIF has established itself as an active investor ready to disrupt markets to strengthen the private sector. The fund welcomes both local and international partners who can contribute to its development goals through co-investment and collaboration. The newly promoted PIF Private Sector Hub (https://www.pif.gov.sa/en/private-sector-hub/) serves as a central platform for exploring these opportunities. Participation at the forum further reinforces PIF’s efforts in empowering the local sector and economy while advancing the objectives of Saudi Vision 2030.
Head of Transport and Logistics Sector in MENA Investments Bakr AlMuhanna told reporters that PIF is seeking to enhance its private-sector partnerships to raise the contribution of the local private sector into PIF projects and portfolio companies to 60% by the end of 2025. The core element in achieving the fund’s transport strategy is based on three pillars: maritime transport, port management and operation, and logistics.
Focus on Local Development
While maintaining international investments, PIF’s primary focus is on domestic development. Foreign suppliers and manufacturers are welcome to compete in the Saudi market, provided they establish a local subsidiary and register as a supplier through procurement portals, including for NEOM, ROSHN, and Qiddiya, to facilitate localization efforts.
Big plans were unveiled by the Saudi Minister for Transport, Saleh Al Jasser, who confirmed during the forum that 80% of the targeted investments in the logistics sector will come from the private sector as part of efforts to enhance public-private partnerships. He also revealed investment opportunities worth a total of SAR 240 billion that will be offered to the private sector in the fields of transportation and logistics services. Four airports are also currently on offer, with tenders in their final bidding stages to establish and manage Abha Airport.
The homegrown EV manufacturer Ceer agreed to 11 partnerships with SAR 5.5 billion at the forum, 80% of which were with Saudi businesses. The PIF is also offering investment opportunities worth SAR 40 billion to the private sector in a bid to stimulate and attract investments across the entire value chain.
Sustainability and Clean Technology
Sustainability has emerged as a cornerstone of PIF’s investment strategy. The fund’s success in developing and exporting Saudi cleantech expertise demonstrates its commitment to sustainable development and environmental considerations in investment decisions. At the forum, the French energy giant EDF formalised a deal with the TAQA Group, of which PIF owns 45%, to push forward with geothermal energy technology innovations. This agreement is expected to develop solutions for decarbonising the energy sector, aligning with Vision 2030’s targets for renewable energy capacity. This is a part of the TAQA plan to advance geothermal energy infrastructure and make it a significant proportion of its broader strategy to diversify its energy mix. This is another clear signal of the Kingdom’s growing commitment to achieving ambitious climate goals and strengthening its position as a leader in sustainable energy solutions.
International Relations and Economic Stability
Despite global market volatility, PIF maintains an optimistic outlook on international engagement, particularly regarding U.S. relations. The fund remains bullish about the opportunities to grow its US investment portfolio and engage with President Trump given the U.S.’s recognition of Saudi Arabia’s strategic and economic advantages, its role in facilitating talks on global conflicts (Ukraine), and its regional influence (Iran/Palestine). The Kingdom also remains committed to doubling down on economic diversification now that non-oil GDP contributions account for approximately 52% of GDP.
UK-Saudi Business Relations
The UK and London continue to hold strategic importance for PIF, as evidenced by its investments in Newcastle United, Selfridges, Heathrow Airport, Aston Martin, and Savvy Games Group. The fund seeks partnerships with UK businesses that can contribute to Saudi Arabia’s national development while generating returns. Priority sectors include advanced manufacturing and sustainable infrastructure, with an emphasis on co-investment, technology transfer, and talent development.
Saudi Arabia is looking for UK firms that offer unique and innovative products and services that are yet unavailable domestically. They want companies to set up in the Kingdom, work within the local ecosystem, enhance the business environment, and give back to the domestic economy. Commitment to a local presence is key for UK companies to be successful in KSA, and opportunities are rife, particularly in supporting large international consultancy and construction companies that need assistance with capacity.
Sources
https://www.argaam.com/en/article/articledetail/id/1789967
https://www.arabnews.com/node/2589802/business-economy
https://www.argaam.com/en/article/articledetail/id/1790494
https://english.aawsat.com/business/5111720-investments-saudi-arabia-double-launch-vision-2030
