{"id":114254,"date":"2026-04-17T00:00:00","date_gmt":"2026-04-17T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/menaplus\/?p=114254"},"modified":"2026-04-17T07:05:13","modified_gmt":"2026-04-17T07:05:13","slug":"pif-has-a-new-strategy-it-wants-the-business-community-to-invest","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/menaplus\/2026\/04\/17\/pif-has-a-new-strategy-it-wants-the-business-community-to-invest\/","title":{"rendered":"PIF has a new strategy: It wants the business community to invest"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>Saudi\u2019s Public Investment Fund (PIF) has a new five-year strategy: It wants the <\/strong><strong>private-sector to co-invest with it<\/strong> <strong>\u2014 and it\u2019s culling its white elephants<\/strong>, including, it seems, high-profile sports franchises at home and abroad. The move suggests the era of the sovereign wealth fund as the sole underwriter of Saudi Arabia\u2019s economic transformation is over.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What happened:<\/strong> The fund\u2019s board of directors \u2014 chaired by MbS \u2014 <a target=\"_blank\" href=\"https:\/\/www.pif.gov.sa\/en\/news-and-insights\/press-releases\/2026\/chaired-by-hrh-crown-prince-pif-board-of-directors-approves-pif-2026-2030-strategy\/\" style=\"\">signed off on the<\/a><a target=\"_blank\" href=\"https:\/\/www.pif.gov.sa\/en\/news-and-insights\/press-releases\/2026\/chaired-by-hrh-crown-prince-pif-board-of-directors-approves-pif-2026-2030-strategy\/\" style=\"\">2026-2030 strategy this week<\/a>, pivoting from a build-at-all-costs stance to one that demands private-sector co-investment, trims spending by 15%, and recalibrates which gigaprojects are getting built. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The potential game-changer is a SAR 70 bn (c. USD 18.7 bn) \u201cprivate-sector support <\/strong><strong>facility\u201d<\/strong> that reads a lot like a co-investment fund. It\u2019s designed to pull private investors into PIF-backed ventures, with PIF boss Yasir Al-Rumayyan framing it as an opportunity: \u201cIt offers our partners more opportunities to invest in high-quality assets and ecosystems, alongside PIF.\u201d <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The official framing is pure Big Four:<\/strong> The strategy \u201cmarks a natural evolution as PIF moves from a period of rapid growth and acceleration to a new phase of sustained value creation,\u201d the fund said in a statement, with \u201ca strengthened focus on maximizing impact, raising the efficiency of investments, and applying the highest standards of governance, transparency and institutional excellence.\u201d <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Riyadh has used the war in the Gulf as the impetus for a long-overdue recalibration<\/strong>. It\u2019s what the PR types call \u201ctaking out the trash\u201d \u2014 putting out news you\u2019d rather have pass quietly when folks are paying attention to something else. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>We\u2019ve been tracking this for a while now.<\/strong> Trojena \u2014 Neom\u2019s mountain ski resort once in line to host the <a target=\"_blank\" href=\"https:\/\/www.dw.com\/en\/saudis-neom-replaced-by-almaty-as-asian-winter-games-host\/a-75851615#:~:text=Why%20are%20the%202029%20Asian,of%20the%20Neom%20mega%2Dproject.\" style=\"\">2029 Asian Winter Games<\/a> \u2014 has scrapped <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/menaplus\/2026\/03\/27\/another-neom-contract-canceled\/\" style=\"\"><\/a><a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/menaplus\/2026\/03\/27\/another-neom-contract-canceled\/\" style=\"\">contract<\/a> after <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/menaplus\/2026\/03\/30\/more-trojena-contracts-scrapped-2\/\" style=\"\">contract<\/a> in recent weeks as the fund redirects resources. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Al-Rumayyan <\/strong><strong><a target=\"_blank\" href=\"https:\/\/www.arabnews.com\/node\/2637870\/business-economy\" style=\"\">telegraphed the shift<\/a><\/strong><strong> last month:<\/strong> \u201cWe wanted to do most of these investments by ourselves and it\u2019s all equity. Now, we\u2019re looking into it in a greater way: How to invite people to come and work with us.\u201d That\u2019s about as close as a Saudi official gets to saying the cheque book has limits.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Officials are prioritizing three types of projects:<\/strong> Projects that carry hard international commitments, like the 2034 FIFA World Cup infrastructure and the 100,000+ hotel rooms the tourism ecosystem demands. Projects that have direct impact on citizens, like the <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/menaplus\/2026\/04\/15\/newly-cost-conscious-saudi-is-turning-to-egyptian-builders-to-deliver-on-its-housing-ambitions\/\" style=\"\">massive housing buildout<\/a> that backs a target of 705 home ownership. And a longer-term focus on the industries of tomorrow. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Even in long-term priority sectors, the approach is getting more pragmatic.<\/strong> PIF\u2019s tech investment vehicle Alat has <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/menaplus\/2026\/04\/10\/pif-pivots-alat-from-chip-manufacturing-to-data-center-buildout\/\" style=\"\"><\/a><a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/menaplus\/2026\/04\/10\/pif-pivots-alat-from-chip-manufacturing-to-data-center-buildout\/\" style=\"\">pivoted away from semiconductor manufacturing<\/a> toward data center buildout \u2014 a tacit acknowledgment that a chip fab built from scratch was always a stretch, while housing the AI infrastructure the world needs right now is not.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Gigaprojects are going to be built in phases.<\/strong> Al-Rumayyan has recently used language first pushed a couple of years back by Finance Minister Mohammed Al-Jadaan, who suggested that the buildout should be seen as \u201c <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/ksa\/2024\/04\/30\/of-modular-gigaprojects-and-a-30-year-timeline-to-rebuild-gaza\/\" style=\"\">modular<\/a>.\u201d The PIF governor <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/world\/middle-east\/pif-board-approves-2026-2030-strategy-saudi-sovereign-wealth-fund-2026-04-15\/\" style=\"\">told Reuters<\/a> that The Line doesn\u2019t need to be completed by 2030 \u2014 while Neom\u2019s industrial city, Oxagon, is being brought to the front of the queue.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">What, exactly, are PIF\u2019s new priorities?<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The PIF\u2019s new strategy will divide its investments into three portfolios<\/strong> \u2014 one for strategic investments, one for managing assets, and one for global markets investments.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The \u201cvision\u201d portfolio cuts across six sectors<\/strong>, down from 13 in the old plan, including tourism, travel, and entertainment; urban development; advanced manufacturing; industrials and logistics; clean energy; water and renewables; and Neom. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The strategic portfolio bucket <\/strong>includes existing <strong>national champions<\/strong> \u2014 think: telecoms powerhouse STC, ACWA Power, and Maaden \u2014 while the financial portfolio are <strong>return-seeking global investments<\/strong>. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">Backing away from sports?<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The PIF\u2019s sports spending spree is getting a hard look <\/strong>after years of over-investment. PIF <a target=\"_blank\" href=\"https:\/\/www.pif.gov.sa\/en\/news-and-insights\/press-releases\/2026\/pif-and-kingdom-holding-company-khc-sign-agreement-for-khc-to-acquire-70-of-al-hilal-club-company\/\" style=\"\">signed a binding agreement<\/a> yesterday that will see Prince Alwaleed bin Talal\u2019s Kingdom Holding Company buy 70% of Al Hilal football club at an enterprise value of SAR 1.4 bn (USD 370 mn). PIF Deputy Governor Yazeed Al-Humied said the move \u201caligns with PIF\u2019s strategy to maximize returns and redeploy capital within the domestic economy.\u201d PIF still holds Al Nassr, Al Ahli, and Al Ittihad.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>And then there\u2019s LIV Golf.<\/strong> The <a target=\"_blank\" href=\"https:\/\/www.nytimes.com\/2026\/04\/15\/world\/middleeast\/saudi-soverign-fund-liv-golf.html\" style=\"\"><\/a><a target=\"_blank\" href=\"https:\/\/www.nytimes.com\/2026\/04\/15\/world\/middleeast\/saudi-soverign-fund-liv-golf.html\" style=\"\">New York Times<\/a>, <a target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/76dfb7ee-ebf4-4030-8c8f-1c0c23ef5b67\" style=\"\"><\/a><a target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/76dfb7ee-ebf4-4030-8c8f-1c0c23ef5b67\" style=\"\">Financial Times<\/a>, and <a target=\"_blank\" href=\"https:\/\/www.wsj.com\/sports\/golf\/liv-golf-saudi-funding-e7c19130\" style=\"\"><\/a><a target=\"_blank\" href=\"https:\/\/www.wsj.com\/sports\/golf\/liv-golf-saudi-funding-e7c19130\" style=\"\">Wall Street Journal<\/a> all reported in recent days that PIF is about to cut funding for the upstart league. <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/sports\/golf\/liv-golf-2026-season-track-despite-reports-funding-crisis-sources-2026-04-15\/\" style=\"\">Reuters<\/a> later reported the opposite \u2014 that LIV\u2019s 2026 season remains on track with PIF\u2019s full backing. We\u2019re reading the coffee grinds against the broader strategy \u2014 a fund that\u2019s cutting capex by 15%, looking for private investors to commit capital, and selling football clubs is not one that\u2019s going to keep bankrolling a golf league that exists primarily as a geopolitical vanity project.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">Three questions you need to be asking<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>PIF\u2019s move is unquestionably the right one<\/strong> at the right time. Here\u2019s what we\u2019re keeping an eye on next:<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#1- Are international actors really willing to commit their own balance sheets to <\/strong><strong>Saudi?<\/strong> It\u2019s one thing to take MbS\u2019 money on a construction or consulting contract \u2014 and something else entirely to be asked to commit your own money to an investment in the Kingdom. The SAR 70 bn co-investment fund is designed to bring in risk-sharing partners, not just fee-seeking contractors repackaged as investors.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#2- Will the domestic private sector come in off the sidelines?<\/strong> PIF\u2019s domestic co-investment push assumes homegrown businesses will put their own money in alongside the fund. After the events of 2017-2019, many big Saudi family-owned businesses stepped up their investments outside the country. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>#3- Will the co-investment strategy make it even harder for the Saudi private-sector to <\/strong><strong>raise debt <\/strong>for projects not linked to Vision 2030? Giga-projects have already absorbed gobs of domestic bank liquidity. Saudi firms coming into PIF-backed ventures will need to raise debt from the same pool of bank credit that the non-gigaproject private sector depends on to sell cars, make food, and tend to their own businesses. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>BACKGROUND- <\/strong>Under the 2021 strategy, PIF invested more than USD 199 bn in new domestic projects and grew AUM to more than USD 900 bn at the end of last year from USD 150 bn in 2015 a decade ago. White elephants aside, it created entire sectors from a standing start: Neom, the Red Sea Project, Qiddiya, Roshn, and Humain. With oil below USD 90, we see the recalibration as a clear sign that the royal treasury can\u2019t fund both the fiscal deficit and another round of capital-hungry giga-project buildouts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The sovereign fund\u2019s plan through 2030 makes clear MbS\u2019 coffers can\u2019t finance the Kingdom\u2019s transformation without the private sector putting its own money on the table<\/p>\n","protected":false},"author":1,"featured_media":114255,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2608],"tags":[2538,2801,2802,2607],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-114254","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-lede","tag-enterpriseam","tag-public-investment-fund","tag-sovereign-funds","tag-the-lede","wpautop","entry"],"acf":{"mongo_id":"49d4ee22-bc63-48e6-b12a-0e15054b5f3f","order":"3","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2026\/4\/836.jpg","photo_position":"above","homepage_title":"","full_issue_title":"LIV and let die?","related_issue":[114250],"teaser":"The sovereign fund\u2019s plan through 2030 makes clear MbS\u2019 coffers can\u2019t finance the Kingdom\u2019s transformation without the private sector putting its own money on the table"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>PIF has a new strategy: It wants the business community to invest - MENA+ Edition<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/menaplus\/2026\/04\/17\/pif-has-a-new-strategy-it-wants-the-business-community-to-invest\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PIF has a new strategy: It wants the business community to invest\" 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