Saudi Arabia’s Public Investment Fund will inject $40 billion on an annual basis in 2021 and 2022 to promote growth in its economy, according to the kingdom’s Crown Prince Mohammed bin Salman.
The PIF manages about $320bn in assets on behalf of the Saudi state. The Crown Prince has been pushing for greater diversification of Saudi Arabia’s oil-reliant economy though the Vision 2030 strategy.
“Economic diversification is key to the kingdom’s sustainability, and we are working hard to achieve this through PIF investments in tourism, sports, industry, agriculture, transportation, mining, space and other sectors,” he said in a statement to the Saudi Press Agency.
Earlier this month, the PIF said it was investing $1.3bn in Reliance Retail Ventures, India’s largest retail chain controlled by Asia's richest man Mukesh Ambani.
The sovereign wealth fund signed a definitive agreement to acquire a 2.04 per cent equity stake in the company, it said in a statement on its website. The investment is in line with PIF's strategy to invest globally in industry leaders.
The fund is the latest to invest in the retail giant after Mr Ambani recently started selling equity stakes, a move that has attracted attention from global investors.
Abu Dhabi Investment Authority, Singapore’s sovereign wealth fund GIC, global private equity firm TPG Capital, Abu Dhabi’s strategic investment arm Mubadala Investment Company and General Atlantic are among investors who have bought stakes in Reliance Retail in recent months.