Signs of a shift in the dynamic between the private sector and the Public Investment Fund were clear as day at the Private Sector Forum held in Riyadh. The fund is moving from “building sectors” to “integrating ecosystems,” PIF Governor Yasser Al Rumayyan told the CEOs and operators gathered at the forum, which wrapped up yesterday with over SAR 60 bn in MoUs signed.

What it means

The fund now expects the private sector to move from “execution” to “value creation,” across the supply chain, as Al Rumayyan put it. The structure of the forum — shifting toward matchmaking and specific zones for advanced manufacturing, clean energy, and more — suggests the new scorecard will favor operators who bring skin in the game via JVs and localization, rather than just responding to RFPs.

The search for diversification partners

Mining and utility champions are already shifting gears: “We are not looking for suppliers anymore,” Maaden’s VP for Procurement Abdullah Al Osaimi said, adding the mining giant wants partners who will manufacture locally to support Maaden’s ambitious 10x growth target by 2040. Acwa Chairman Mohammad Abunayyan is also saying the renewables champion evolved from a local operator (paying foreign firms to set up plants in the Kingdom) into an exporter of desalination innovation, being actively solicited by the US and China to deploy its know-how.

EVs, too: Ceer CEO James Deluca also said demand is now for suppliers who can handle “ethical reverse engineering” to localize complex parts, not just import them. The EV maker signed 16 agreements worth SAR 3.7 bn to localize manufacturing at the forum, part and parcel of a goal to locally produce 45% of automotive materials and components by 2034, with Deluca confirming it will start manufacturing vehicles in 4Q.

Can’t forget AI: Humain took further steps towards its ambition to localize the full-stack AI capabilities. The company acquired a controlling stake in London-based sports tech company Ai.io, together establishing a new vertical called Humain Sport that will work on solutions geared towards data-driven athlete development, performance analysis, and fan engagement. Silicon Valley startup Luma AI, Humain’s entertainment and gaming partner, is also expanding into Saudi soon.

The new strategy

The forum presented a window for the PIF to test the waters, gauging investor interest and getting feedback to fine-tune the final version of its updated strategy, reported to be due this spring. The fund is set to refine its 2026-2030 investment playbook by concentrating capital on a tighter group of portfolio companies and scaling them into global champions across sectors such as manufacturing, AI, and aviation.

IN CONTEXT- Higher fiscal pressures — including lower oil prices, rising borrowing, and a widening deficit — are pushing the government to cut back on spending and prioritize time-sensitive projects and high-return sectors.

Word on the street so far: The fund reportedly plans to cut capital spending by some 15%, with new directives to prioritize projects meeting strict internal rate of return thresholds or serving a designated trophy event. Attracting capital from major global asset managers is also said to be a big focus under the new roadmap.

We got official confirmation that Neom and its futuristic city The Line are all but pushed to the bottom of the priority list, after months of media reporting delays and resizing of the flagship gogaproject. Investment Minister Khalid Al Falih said in a panel that the Kingdom is currently focusing on finishing up the infrastructure for the 2034 Fifa World Cup and the 2030 Expo, adding that “these are the priorities, and the feasibility of certain projects, such as The Line, may decline.”

Also worth noting

  • Roshn and Kuwaiti logistics player Agility are partnering on a new Grade A logistics park, signing a heads of terms to form a JV for the project.
  • Alupco inked three agreements worth SAR 1.8 bn to increase its production output, the company’s CEO Khaled Abdel Moneim told Asharq Business.
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