Does the PIF compete with or complement the private sector? 
During the Public Investment Fund Private Sector Forum held in Riyadh on Feb. 6 and 7, the importance of cooperation between the PIF and the Saudi private sector was heavily emphasized.
The forum is designed to strengthen partnerships between the companies in the PIF’s portfolio and showcase opportunities for local cooperation in strategic sectors.
More than 8,000 people attended this year’s forum, including government ministers, senior PIF officials, participants from the private sector, and representatives of 80 companies affiliated with the PIF. Additionally, there were more than 100 exhibition booths where PIF portfolio companies and government bodies were able to showcase their services and collaboration opportunities.
The PIF launched its Private Sector Hub in 2023 as a one-stop-shop for private firms seeking to engage with the PIF and its portfolio companies. Since its launch, the hub has generated more than 200 opportunities with a total value exceeding $5.3 billion. Furthermore, $96 billion worth of businesses were secured with the private sector in 2023.
The PIF has also introduced three key programs to facilitate the growth of the private sector: the Local Content Growth Program (MUSAHAMA), the Supplier Development Program, and the Private Sector Portal.
MUSAHAMA is intended to realize the PIF’s aspiration of increasing its contribution to the Kingdom’s economy by raising the contribution of the PIF and its affiliates to local content to 60 percent by the end of 2025.
I believe that, rather than competing with the Saudi private sector, the PIF and its portfolio of companies complement it. This is evidenced by the value of private sector investments in portfolio companies and projects affiliated with the PIF, which amounted to $25.6 billion as of the third quarter of 2023.
Additionally, it aims to enable and support the private sector in alignment with Saudi Vision 2030, with the goal of increasing its contribution to the Kingdom’s gross domestic product from 40 percent to 65 percent by 2030.
The Supplier Development Program is designed to strengthen partnerships between the PIF’s portfolio companies and their suppliers. It addresses gaps in the local value chain across multiple industries to foster a more resilient economy.
The Private Sector Portal aims to showcase various partnership opportunities for the PIF and its portfolio companies with the local private sector. Additionally, it increases awareness of ongoing PIF private-sector engagement efforts.
In his opening speech at the forum, PIF governor Yasir Al-Rumayyan emphasized the importance of enhancing cooperation with the private sector to achieve the strategic objectives of the PIF. He explained that the PIF continues to function as an engine for economic transformation in Saudi Arabia by developing strategic sectors and involving the private sector through initiatives that enhance its role as an investor, partner, and supplier.
I believe that, rather than competing with the Saudi private sector, the PIF and its portfolio of companies complement it. This is evidenced by the value of private-sector investments in portfolio companies and projects affiliated with the PIF, which amounted to $25.6 billion as of the third quarter of 2023.
• Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz
