Saudi Arabia’s Public Investment Fund (PIF), one of the world’s largest sovereign wealth funds, is reorienting its investment strategy to prioritize domestic growth and economic diversification.

PIF Governor Yasir Al-Rumayyan announced at the Future Investment Initiative (FII) summit that the fund will reduce its overseas investments from 30% to between 18% and 20% of its total portfolio. This strategic shift aligns with Saudi Arabia’s Vision 2030, which aims to reduce the Kingdom’s reliance on oil revenue.

While scaling back international investments, the PIF will continue to engage in global partnerships and co-investments. This approach will allow the fund to leverage international expertise while focusing on domestic projects contributing to Saudi Arabia’s economic transformation.

The PIF has been a key driver of Saudi Arabia’s ambitious economic reform agenda. However, rising costs and global economic uncertainties have prompted the fund to reassess its investment priorities. By focusing on domestic projects, the PIF aims to create jobs, stimulate economic growth, and develop new industries.

One of the PIF’s flagship projects is NEOM, a futuristic city under construction in northwest Saudi Arabia, which is expected to attract significant foreign investment and create new economic opportunities. In addition to infrastructure and real estate projects, the PIF invests in technology and innovation, focusing on artificial intelligence (AI) as a key driver of future economic growth.

Al-Rumayyan emphasized the importance of AI in tackling global challenges such as climate change and healthcare. Saudi Arabia aims to establish itself as a global AI hub, investing heavily in research and development.