How Saudi Arabia’s PIF is Powering Economic Growth: [Key Projects & Numbers]

Introduction:

Saudi Arabia is on a clear and ambitious path toward achieving the goals of Vision 2030, a strategy designed to reshape life in the Kingdom and take concrete steps toward a promising future. This vision focuses on three pillars: building a vibrant society, creating a thriving economy, and fostering an ambitious nation. Today, we focus on the booming economy that Vision 2030 aims to establish—specifically, one of its most powerful growth engines: the Public Investment Fund (PIF). The Public Investment Fund (PIF) has emerged as a key driver of Saudi Arabia’s economic growth. As a sovereign wealth fund with a history spanning over 50 years, PIF has played—and continues to play—a critical role in developing major companies within the Kingdom. It serves as a vital financier for numerous strategic national projects and has greatly contributed to accelerating Saudi Arabia’s economic progress, ultimately positioning it among the world’s leading economies as a member of the G20. A significant turning point for the fund occurred in 2015 when it was placed under the oversight of the Council of Economic and Development Affairs, chaired by His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud. Today, PIF manages assets worth 3.47 trillion SAR, has generated over 1.1 million direct and indirect jobs locally and globally, and holds a portfolio of 103 established companies.

Given its immense economic significance, this article delves deeper into the Public Investment Fund, exploring its major initiatives, landmark projects, and the key sectors it has invested in over the past years.

Key Initiatives of the Public Investment Fund

As a central pillar of Vision 2030, the Public Investment Fund (PIF) plays a vital role in driving Saudi Arabia’s economic transformation. Recognizing its importance, Vision 2030 established a dedicated PIF Program to expand the fund’s assets, positioning it among the world’s largest sovereign wealth funds. Additionally, the program fosters groundbreaking projects in high-potential sectors, accelerating the diversification of the Kingdom’s non-oil economy and unlocking new avenues for growth and prosperity. To achieve these ambitious goals, PIF has launched several key initiatives aimed at empowering the private sector and enabling businesses to thrive in alignment with Vision 2030. Some of the most notable initiatives include:

1. Musahama Program The Musahama Program enhances the private sector’s growth by boosting its competitiveness, expanding its capabilities, and fostering innovation. The initiative focuses on strengthening local industries and businesses through four key areas:

• Prioritizing local content in procurement processes.
• Investing in domestic industries to boost their development.
• Enhancing the global competitiveness of local manufacturers.
• Encouraging innovation in materials and design while promoting national pride in Saudi-made products.

2. Accelerated Manufacturing Program This program supports emerging industrial companies in developing innovative and competitive products and services while expanding their market presence within Saudi Arabia. The initiative aligns with PIF’s goals by fostering local content development and creating a robust ecosystem for industrial startups.

3. Contractor Program The Pre-Qualification Contractors Program is a digital platform that streamlines the registration and qualification process for contractors wishing to work with PIF-affiliated companies. Developed in collaboration with the Saudi Contractors Authority, this platform complements traditional registration channels, providing a more efficient and transparent way for contractors to access major projects.

4. Private Sector Forum The PIF Private Sector Forum serves as a bridge between PIF, its subsidiaries, and the private sector, aiming to strengthen localization efforts and build resilient supply chains across key industries. The forum provides businesses with:

• Diverse partnership opportunities with PIF and its subsidiaries.
• Direct networking access to PIF decision-makers.
• Streamlined supplier registration for high-priority projects.
• Insights into PIF programs designed to empower the private sector.

5. Portfolio Companies' SME Programs PIF and its subsidiaries have introduced various initiatives to empower small and medium enterprises (SMEs), fostering their growth and competitiveness across multiple sectors. These programs fall into three main categories:

• Entrepreneurship Ecosystem Support: Training and mentorship programs designed to nurture innovative startups and strengthen Saudi Arabia’s entrepreneurial landscape.
• Financial Support: Direct equity investments and debt financing solutions are provided by PIF-affiliated companies to fuel SME growth.
• Scale-Up Programs: Initiatives that help SMEs expand their capabilities, seize new growth opportunities, and integrate into major projects within the Kingdom.

Through these initiatives, PIF continues to accelerate economic diversification, empower businesses, and shape a dynamic, sustainable future for Saudi Arabia.

Major Projects Implemented by the Public Investment Fund

The Public Investment Fund (PIF) has not only launched initiatives to stimulate private sector growth but has also established major projects that contribute to diversifying Saudi Arabia's economy and reducing its reliance on oil. Some of the most significant projects include:

NEOM

NEOM is one of the most prominent projects undertaken by the Public Investment Fund in Saudi Arabia. Positioned as a launchpad for transformation, NEOM presents an ambitious vision for the future, creating a global hub for entrepreneurship and innovation.
Covering an area of 26,500 square kilometers, NEOM will be powered entirely by renewable energy, serving as a destination and home for dreamers and a dynamic community that fosters impactful and innovative solutions.
Aligned with Saudi Vision 2030, NEOM will implement a circular economy model, adopting a zero-carbon emissions approach. Its innovative design and advanced technological solutions aim to redefine urban living, enhance environmental sustainability, and improve quality of life.

Qiddiya

Led by Qiddiya Investment Company, established in 2018, Qiddiya is one of PIF’s flagship projects designed to become the capital of entertainment, sports, and culture.
As the first-of-its-kind destination in the region dedicated to entertainment, sports, and culture, Qiddiya is expected to become a world-class attraction. It will offer visitors a diverse range of innovative and immersive experiences.
Spanning an area of 376 square kilometers, Qiddiya seeks to drive Saudi Arabia’s economic growth and open new career pathways that enrich the lives of Saudi youth.

Red Sea Global

Founded in 2018, Red Sea Global (RSG) is the developer behind two of the world’s most ambitious tourism projects: The Red Sea and Amaala—both designed with a strong commitment to nature and people.
The Red Sea destination covers over 28,000 square kilometers and includes the world’s fourth-largest thriving coral reef system. The project aims to attract one million visitors by 2030.
RSG plays a key role in achieving Saudi Vision 2030 by diversifying the economy, creating jobs in promising sectors such as tourism and hospitality, and preserving the nation’s environmental and cultural heritage.

Roshn

Established in 2018, Roshn is a leading national real estate developer reshaping the lifestyle, living, working, and recreational landscape in Saudi Arabia.
Roshn builds sustainable communities and contributes to Saudi Vision 2030’s goal of increasing homeownership rates to 70% by 2030.
The company is developing fully integrated residential communities across the Kingdom, featuring a variety of high-quality amenities inspired by Saudi Arabia’s rich heritage. These include parks, pedestrian pathways, cycling tracks, restaurants, cafes, schools, and mosques—offering a modern and vibrant lifestyle for Saudi citizens.

Diriyah Company

Established in 2022, the Diriyah Company is responsible for developing the Diriyah project—home to one of Saudi Arabia’s most historically significant sites, which is listed as a UNESCO World Heritage site.
Diriyah blends cultural, historical, and tourist attractions, proudly showcasing 300 years of Saudi Arabian history to the world.
With a mission aligned with PIF’s strategy to unlock the potential of promising sectors, Diriyah Company aspires to become the world’s largest cultural and heritage destination, elevating Saudi Arabia’s global standing in tourism and culture.

Renewable Energy Projects

PIF has signed three agreements to localize the manufacturing and assembly of wind turbines, solar panels, and their components for renewable energy production in Saudi Arabia. These agreements align with the Ministry of Energy’s efforts to localize renewable energy components.
These three joint projects represent PIF’s latest investments in the energy and utilities sector to support Saudi Arabia’s energy needs and strengthen its position in renewable energy.
Currently, through its subsidiaries ACWA Power and Badeel, PIF is developing eight renewable energy projects with a total capacity of 13.6 GW, representing an investment of over $9 billion from PIF and its partners. These projects include Sudair, Shuaiba 2, Al-Rass 2, Al-Kahfah, Saad 2, Hodn, Al-Muwaiah, and Al-Khushaybi—all aimed at enabling the local private sector by leveraging domestic supply chains to meet significant local content requirements and procure necessary equipment, materials, and services.

Middle East and North Africa Investments

The Public Investment Fund (PIF) of Saudi Arabia is expanding its investments across the Middle East and North Africa (MENA) to diversify the economy and strengthen strategic partnerships. In October 2022, PIF announced the establishment of five new regional companies targeting investments in Jordan, Bahrain, Sudan, Iraq, and Oman.
This announcement was made during the sixth edition of the Future Investment Initiative in Riyadh, which was attended by global investors, innovators, and leaders. These companies aim to enhance PIF’s investment partnerships and support private sector growth in Saudi Arabia. The targeted investments for these entities amount to approximately SAR 90 billion and will focus on key sectors such as infrastructure, real estate development, telecommunications, and technology.
This regional expansion follows the launch of the Saudi Egyptian Investment Company in August 2022, which focuses on investments in infrastructure, logistics, agriculture, manufacturing, and financial services in Egypt.
Additionally, PIF is strengthening collaborations with international financial institutions to support its regional investments. In March 2025, PIF announced its role as a major investor in new funds launched by Goldman Sachs Asset Management, which focuses on Gulf Cooperation Council (GCC) countries. These funds aim to attract global capital for investments in publicly listed companies in Saudi Arabia and provide credit financing to businesses operating across the Gulf region.

These initiatives underscore PIF’s commitment to advancing economic development in the MENA region, creating diverse investment opportunities, and fostering regional collaboration in alignment with Saudi Vision 2030.

Sectors in Which PIF Invests

PIF has been actively stimulating Saudi Arabia’s private sector by investing in emerging and high-potential industries that generate employment, enhance capabilities, and position the local economy for regional and global competitiveness. The fund continues to manage and develop its portfolio by identifying strategic growth opportunities across multiple sectors, including:

• Aerospace and Defense
• Automotive Industry
• Building Materials and Construction
• Consumer Goods and Retail
• Entertainment, Tourism, and Sports
• Financial Services
• Food and Agriculture
• Healthcare
• Metals and Mining
• Real Estate
• Telecommunications, Media, and Technology
• Transportation and Logistics
• Utilities and Renewable Energy