Saudi Arabia has embarked on ambitious initiatives spanning sectors such as technology, tourism, and renewable energy to diversify its economy and reduce dependence on oil revenues.

This strategic vision has now taken another significant step forward with signing a memorandum of understanding (MoU) between Saudi Arabia’s Public Investment Fund (PIF) and Bahrain’s sovereign wealth fund, Mumtalakat. 

This agreement aims to enhance cooperation and create fresh investment avenues across Bahrain’s strategic sectors. Under the terms, PIF plans to boost investments in Bahrain’s key sectors, while Mumtalakat seeks collaborative opportunities with the Saudi wealth fund.

In a joint statement, both entities highlighted the agreement’s potential to expand collaboration and unlock promising investment avenues in Bahrain. PIF stated that the MoU would enhance its existing investments in the country and create additional opportunities for private-sector players in both nations.

“The MoU also supports PIF’s objectives of building long-term strategic regional partnerships that bring additional value to local economies,” said Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF. 

The agreement is anticipated to generate sustainable returns, contributing to the maximization of PIF’s assets under management and supporting the diversification of the Saudi economy in line with Vision 2030.

This agreement follows the establishment of the Saudi-Bahraini Investment Company, a subsidiary of PIF, mandated to invest up to $5 billion across various promising sectors within Bahrain.

PIF actively supports neighboring countries through investments, loans, and central bank deposits.

According to research consultancy Global SWF, the $700 billion wealth fund emerged as the most active sovereign investor globally in 2023, recording a record $31.6 billion deal activity.

Following 2025, PIF aims to increase its annual capital deployment to $70 billion further, surpassing the current range of $40 billion to $50 billion.

The fund actively invests across various sectors as part of Saudi Arabia’s Vision 2030 diversification strategy. Its portfolio includes futuristic projects like the $500 billion NEOM city and the Red Sea Development Company’s mega-tourism initiative.

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