The Governor of the Saudi Public Investment Fund (PIF), Yasir Al-Rumayyan, said that Saudi Arabia will announce the fund’s new strategy within the next two months, reported Argaam.
Speaking at the Economic Club in Washington on Monday, Al-Rumayyan noted that the PIF’s strategy for the next five years will build on current plans through 2030 and extend to 2040 and beyond.
He added that the PIF’s average internal rate of return (IRR) climbed to 7.2% from less than 2% before 2015, attributing this to a strategy reset that took place when Crown Prince Mohammed bin Salman became the fund’s chairman of the board, according to Saudi Gazette.
Moreover, Al-Rumayyan said that the PIF’s investment decisions take several factors in consideration, particularly returns. However, certain sectors receive more investments to boost their contribution to the GDP, create jobs, and support economic diversification efforts.
Managing assets valued at $925 billion to $945 billion, Al-Rumayyan noted that the PIF aims to increase its assets to $1.075 trillion by the end of the year and at least $2 trillion by 2030. He added that the current strategy targets 13 sectors domestically and internationally, pointing out that the fund is “more proactive rather than reactive” in originating opportunities.
Furthermore, the PIF’s governor spoke about Saudi Aramco, saying that it is “more than oil and gas.” He highlighted the company’s adoption of advanced technology and AI as a reason behind its low lifting cost of around $3.5 per barrel.
Al-Rumayyan added that despite producing 10 million barrels per day, Aramco has the capacity to produce 12 million barrels per day, and could boost production by 20% within days.
