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“Public Investments” Spending $66 billion a year on New Saudi Projects

Governor of Saudi “Public Investments,” Yasser Al-Rumayyan, confirmed during a conference to highlight the fund’s strategy until 2025, that they are seeking to invest between 150 to 200 billion riyals ($66 billion) a year in new Saudi projects. He stressed that the coming period will see capital spending on new projects substantially doubling.

The press conference was held by the Governor of the Public Investment Fund, during which he reviewed the Fund’s strategy 2021-2025, which was approved by the Board of Directors headed by Saudi Crown Prince Mohammed bin Salman.

Al-Rumayyan highlighted that one of the main portfolios in the fund is focused on developing sectors, referring to the development of several companies such as the helicopter company, the recycling company, and entertainment companies. Simultaneously, he stressed that they are considering electrical appliances too, in addition to projects in cars.

Furthermore, the fund launched 10 new sectors and 30 new companies in various fields, which had an impact on attracting and opening many projects and developing other sectors, Al-Rumayyan said, referring to the model of Roshen Real Estate. The real estate company aims to develop residential neighborhoods according to international standards in 9 cities around the Kingdom. It also aims to contribute to raising the percentage of citizens’ ownership of housing to 70 percent by 2030.

He stressed that the coming period will be greatly more significant for capital spending in new projects, which will significantly multiply, as one trillion riyals ($266 billion) will be invested until 2025.

Regarding the 150 billion riyals that will be increasingly pumped until 2025 into the local economy, the CEO indicated that it will be funded from 4 financing sources. The first is the cash in the fund, followed by the assets that the fund receives from the government, in addition to the profits that come from the fund’s investments, while the fourth is financing, which they started about two years ago.

Moreover, the fund is seeking to reach 4 trillion riyals, saying that the net assets of the fund tripled. Currently they want to attain from 1.5 trillion riyals to 4 trillion riyals, through several resources, including profits, assets and other projects they are working on, Al-Rumayyan pointed out.

He explained that many large companies registered in the fund with one riyal, but when business starts, their value will dramatically increase.

Meanwhile, the Governor of the Public Investment Fund said that shareholders of Saudi Aramco may consider selling more shares of the company if market conditions are favorable.

Concerning investing in “Softbank,” he said that the return on investment in it rose in 2020, and is still rising.

Regarding the human cadres that will lead the fund, Al-Rumayyan confirms that 80 percent of them are Saudi nationals, stressing that they mainly look at the positive impact that will be achieved to reach the targets.

The Governor of the Fund, Al-Rumayyan, spoke during the press conference on 13 sectors in which the fund works, adding that the benefits for citizens will be numerous, such as jobs, quality of life, new services, and many others, explaining that with reference to many companies in different sectors such as entertainment, transportation and energy. However, since they are only at the beginning, there will be more investments in the coming period.

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