Saudi wealth fund to sharpen focus on building global champions
The plan dovetails with its broader goals of developing areas such as tourism, entertainment and gaming
[RIYADH] Saudi Arabia’s US$1 trillion wealth fund plans to sharpen its focus on portfolio companies like artificial intelligence firm Humain in coming years, with an eye on attracting investors and building some of its subsidiary firms into global champions.
Besides Humain, the Public Investment Fund intends to put more emphasis on firms like manufacturer Alat, aircraft lessor AviLease and new airline Riyadh Air in its 2026-2030 investment strategy, according to people familiar with the matter.
The plan dovetails with the kingdom’s broader goals of focusing on developing aspects of the local economy like tourism, entertainment and gaming, while potentially paring back some elements – including megaprojects like Neom. It represents a continuation of PIF’s efforts during the current five-year plan and marks an evolving focus on making Saudi companies more international, the people said.
The strategy for portfolio companies has been agreed and is likely to be made public in the first quarter of next year, the people said, declining to be identified as the information is private. The PIF declined to comment.
The fund is still working out how exactly it will approach international investments, the people said. After the review is complete, allocations to global deals may increase slightly as portfolio companies are expected to become more active as they look to expand overseas, they added.
Since its inception, the PIF has established about 100 companies in sectors ranging from tourism to AI. The goal is to focus on growing firms in six key areas outlined this week by governor Yasir Al-Rumayyan, in what he called a “sneak peek” of the investment strategy.
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The plan will lean on consolidation to create more companies that are able to raise their own financing and draw in foreign investment, people familiar with the matter said.
The PIF has already been encouraging portfolio companies to tap financing independently, leveraging their balance sheets and growth plans, Bloomberg News has reported. It has also listed some of these entities on the local bourse.
Foreign direct investment is another key priority for the kingdom, which drew about US$32 billion of FDI in 2024, and the fund’s move would support Riyadh’s goal of attracting US$100 billion annually by 2030.
The PIF is the main entity tasked with driving Crown Prince Mohammed Salman’s Vision 2030 programme, which includes building dozens of mega projects geared toward diversifying the economy away from crude oil.
That mission is becoming more challenging in recent years, with the government facing a fiscal squeeze that has limited its ability to invest more in the economy. In one sign of the challenges of diversification, the PIF cut the value of major projects on its books, including Neom, by US$8 billion last year.
Still, in his opening speech at Riyadh’s annual Future Investment Initiative, Al-Rumayyan lauded progress made on Vision 2030. “You can see the results everywhere – new cities, new industries, new ecosystems and supply chains,” he said. He later singled out Neom as one of the six areas of focus for the 2026-2030 investment roadmap, though didn’t offer further details.
The wealth fund is currently reviewing the overall plan for Neom and there’s yet to be clarity on the exact path forward for projects there, including The Line, according to people familiar with matter. Other projects in the crown prince’s plan, including the tourism resorts of Red Sea Global and the entertainment city of Qiddiya, are expected to have more priority going forward, the people said.
Overall, the PIF deployed nearly US$57 billion across priority sectors last year and international investments made up 17% of its portfolio. It plans to boost total annual deployment to US$70 billion a year after 2025, and its investments in absolute dollar terms will continue to rise abroad even as it focuses at home.
Its recent role in what stands to be the biggest leveraged buyout in history underscores that those deals abroad may just now be a bit more strategic.
The US$55 billion deal for Electronic Arts would boost investment in the US as part of a pledge made by the Saudi crown prince to US President Donald Trump, while also driving ambitions to create a home-grown gaming industry. BLOOMBERG
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