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PIF drives Saudi Arabia’s diversification agenda with bold moves in 2024

PIF’s investments in 2024 reflect its multi-pronged approach to transforming Saudi Arabia’s economy. Shutterstock
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Updated 30 December 2024
Nirmal Narayanan
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PIF drives Saudi Arabia’s diversification agenda with bold moves in 2024

  • PIF ranks among the world’s most influential sovereign wealth funds
  • PIF’s activities in 2024 were not limited to cutting-edge technologies
Updated 30 December 2024
Nirmal Narayanan

RIYADH: Saudi Arabia’s Public Investment Fund continues to play a key role in the Kingdom’s economic transformation, leading efforts to diversify revenue streams and reduce reliance on oil. 

With assets under management reaching $925 billion, PIF ranks among the world’s most influential sovereign wealth funds, driving investments in technology, infrastructure, sustainability, and culture throughout 2024.

The non-oil sector now contributes 52 percent to Saudi Arabia’s gross domestic product, reflecting the success of Vision 2030, the Kingdom’s ambitious plan to create a sustainable and diversified economy. Central to this progress, PIF has expanded its reach both domestically and internationally, with landmark initiatives designed to reshape industries and enhance the Kingdom’s global competitiveness.

PIF’s tech ventures

In February, the fund launched Alat, a company dedicated to making Saudi Arabia a global hub for sustainable technology manufacturing. Alat’s partnership with Lenovo Group in May underscored this vision, with the two entities committing $2 billion through zero-coupon convertible bonds. 

The collaboration will establish a regional headquarters in Riyadh for the Middle East and Africa, alongside a new manufacturing hub to support Lenovo’s global operations. By June, Alat had expanded its focus with two new business units in electrification and artificial intelligence infrastructure, aimed at meeting the soaring demand for renewable energy technologies and AI-driven solutions.

The electrification initiative is geared toward strengthening grid technology, addressing the increasing energy needs driven by renewables like solar, wind, and hydrogen. Simultaneously, the AI infrastructure segment is set to position Saudi Arabia as a manufacturing powerhouse, leveraging advanced capabilities to cater to global industries.

Space industry leap

Another major milestone came in May when PIF launched Neo Space Group, a company designed to advance Saudi Arabia’s presence in the commercial satellite and space industry. 

Neo Space Group announced its focus on satellite communications, earth observation, remote sensing, and navigation technologies, along with a venture capital fund targeting space-focused startups.  

“NSG will contribute to the development and deployment of the latest cutting-edge technologies in the space industry through its four dedicated business segments: satellite communications, earth observation and remote sensing, satellite navigation and Internet of Things, as well as a satellite and space-focused venture capital fund,” said PIF.   

In December, Neo Space Group made headlines with its acquisition of UP42, a geospatial platform developed by Airbus. This acquisition is expected to significantly enhance Saudi Arabia’s geospatial capabilities, enabling applications across agriculture, infrastructure monitoring, and more, aligning with the Kingdom’s Vision 2030 goals.

Cultural heritage projects

PIF’s activities in 2024 were not limited to cutting-edge technologies. In September, it launched National Interactive Entertainment Co., known as QSAS, which is focused on creating immersive storytelling experiences rooted in Saudi heritage and Islamic culture. 

The initiative reflects Saudi Arabia’s broader efforts to balance cultural preservation with business development. QSAS plans to develop and operate interactive exhibitions across the Kingdom while fostering partnerships in construction, event management, and technology.

AI and ICT expansion

The fund also made a major push in artificial intelligence this year. In October, it signed a landmark partnership with Google Cloud to establish an advanced AI hub near Dammam. The agreement, inked during the Future Investment Initiative, is projected to create thousands of jobs and generate $71 billion in economic impact over the next eight years. 

Beyond economic benefits, the hub will offer AI training to millions of students and professionals, contributing to national goals of expanding the information and communication technology sector by 50 percent.

Infrastructure investments

Housing infrastructure also came into focus, with the October launch of Smart Accommodation for Residential Complexes Co., or SAARC. This company aims to address the rising demand for workforce housing tied to Saudi Arabia’s large-scale infrastructure projects. SAARC plans to develop residential complexes that adhere to international standards, creating modern living spaces that support the country’s rapid urbanization.

PIF expanded its global investment footprint with a memorandum of understanding signed with Brookfield Asset Management in October. The deal positions PIF as a strategic anchor investor in Brookfield Middle East Partners, a $2 billion fund targeting key sectors such as industrials, health care, and technology. The partnership underscores PIF’s strategy of leveraging international opportunities to strengthen Saudi Arabia’s economic base.

Tourism and hospitality growth

In the hospitality sector, PIF introduced Adeera in December, a new company tasked with operating and managing hotels that combine world-class standards with authentic Saudi hospitality. Adeera is expected to work closely with local developers, fostering private-sector participation and supporting the growth of homegrown brands as Saudi Arabia positions itself as a premier global tourism destination.

Sustainability and innovation took center stage with the December launch of Milaf Cola by PIF subsidiary Thurath Al-Madina. Unlike conventional soft drinks, Milaf Cola is crafted from Saudi dates, eliminating added sugars and emphasizing natural, nutrient-rich ingredients. Introduced during the Riyadh Date Festival, the drink represents PIF’s focus on creating value-added products from local resources while adhering to global food safety standards.

Strategic acquisitions

Throughout the year, PIF pursued an aggressive acquisition strategy, bolstering its portfolio with high-profile deals. 

In January, the fund increased its stake in Middle East Paper Co. to 23.08 percent, enabling the company to expand production and enhance operational efficiency. 

February saw PIF acquiring a 40 percent stake in Zamil Offshore Co., a key player in the Kingdom’s energy sector. 

October marked another milestone as PIF purchased a 40 percent stake in Central Group, a Thai conglomerate interested in retail, real estate, and hospitality. 

Rounding the year, PIF announced plans in November to acquire a 54 percent stake in MBC Group for $1.99 billion, solidifying its influence in the entertainment industry.

PIF’s investments in 2024 reflect its multi-pronged approach to transforming Saudi Arabia’s economy. The fund has played a pivotal role in advancing Vision 2030’s objectives, from technology and space exploration to cultural preservation and hospitality. With a focus on sustainability, innovation, and global partnerships, PIF is laying the foundation for a diversified, resilient economy that can compete on the world stage.

As the Kingdom prepares for the next phase of its transformation, PIF’s initiatives in 2024 serve as a testament to its commitment to redefining Saudi Arabia’s economic landscape.

Topics: Saudi Arabia Saudi Arabia’s Public Investment Fund (PIF) PIF

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World must prioritize resilience over disruption, economic experts warn

Saudi Arabia’s Finance Minister Mohammed Al-Jadaan urged policymakers and investors to “mute the noise” and focus on resilience.
Updated 8 sec ago
Nadia Al Faour
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World must prioritize resilience over disruption, economic experts warn

  • Al-Jadaan said that much of the anxiety dominating markets reflected a world that had already been shifting for years
  • Pointing to Asia and the Gulf, Al-Jadaan said that some countries had already built models based on diversification and resilience
Updated 8 sec ago
Dalal Awienat Nadia Al Faour

DAVOS: Saudi Arabia’s Finance Minister Mohammed Al-Jadaan urged policymakers and investors to “mute the noise” and focus on resilience, as global leaders gathered in Davos on Friday against a backdrop of trade tensions, geopolitical uncertainty and rapid technological change.

Speaking on the final day of the World Economic Forum in Davos, Al-Jadaan said that much of the anxiety dominating markets reflected a world that had already been shifting for years.

“We need to define who ‘we’ are in this so-called new world order,” he said, arguing that many emerging economies had been adapting to a more fragmented global system for decades.

Pointing to Asia and the Gulf, Al-Jadaan said that some countries had already built models based on diversification and resilience. In energy markets, he pointed out that the focus should remain on balancing supply and demand in a way that incentivized investment without harming the global economy.

“Our role in OPEC is to stabilize the market,” he said.

His remarks were echoed by Saudi Arabia’s Minister of Economy and Planning Faisal Alibrahim, who said that uncertainty had weighed heavily on growth, investment and geopolitical risk, but that reality had proven more resilient.

“The economy has adjusted and continues to move forward,” Alibrahim said.

Alibrahim warned that pragmatism had become scarce, trust increasingly transactional, and collaboration more fragile. “Stability cannot be quickly built or bought,” he said.

Alibrahim called for a shift away from preserving the status quo towards the practical ingredients that made cooperation work, stressing discipline and long-term thinking even when views diverged.

Quoting Saudi Arabia’s founding King Abdulaziz Al-Saud, he added: “Facing challenges requires strength and confidence, there is no virtue in weakness. We cannot sit idle.”

President of the European Central Bank Christine Lagarde stressed the importance of distinguishing meaningful data from headline noise, saying: “Our duty as central bankers is to separate the signal from the noise. The real numbers are growth numbers not nominal ones.”

Managing Director of the IMF Kristalina Georgieva echoed Lagarde’s sentiments, saying that the world had entered a more “shock prone” environment shaped by technology and geopolitics.

Director General of the World Trade Organization Ngozi Okonjo-Iweala said that the global trade systems currently in place were remarkably resilient, pointing out that 72 percent of global trade continued despite disruptions.

She urged governments and businesses, however, to avoid overreacting.

Okonjo Iweala said that a return to the old order was unlikely, but trade would remain essential. Georgieva agreed, saying global trade would continue, albeit in a different form.

Georgieva warned that AI would accelerate economic transformation at an unprecedented speed. The IMF expects 60 percent of jobs to be affected by AI, either enhanced or displaced, with entry-level roles and middle-class workers facing the greatest pressure.

Lagarde warned that without cooperation, capital and data flows would suffer, undermining productivity and growth.

Al-Jadaan said that power dynamics had always shaped global relations, but dialogue remained essential. “The fact that thousands of leaders came here says something,” he said. “Some things cannot be done alone.”

In another session titled Geopolitical Risks Outlook for 2026, former US Democratic representative Jane Harman said that because of AI, the world was safer in some ways but worse off in others.

“I think AI can make the world riskier if it gets in the wrong hands and is used without guardrails to kill all of us. But AI also has enormous promise. AI may be a development tool that moves the third world ahead faster than our world, which has pretty messy politics,” she said.

American economist Eswar Prasad said that currently the world was in a “doom loop.”

Prasad said that the global economy was stuck in a negative-feedback loop and economics, domestic politics and geopolitics were only bringing out the worst in each other.

“Technology could lead to shared prosperity but what we are seeing is much more concentration of economic and financial power within and between countries, potentially making it a destabilizing force,” he said.

Prasad predicted that AI and tech development would impact growing economies the most. But he said that there was uncertainty about whether these developments would create job opportunities and growth in developing countries.

Professor of international political economy at the University of New South Wales in Australia, Elizabeth Thurbon, said that China was driving a Green Energy transition in a way that should be modeled by the rest of the world.

“The Chinese government is using the Green Energy Transition to boost energy security and is manufacturing its own energy to reduce reliance on fossil fuel imports,” she explained.

Thurbon said that China was using this transition to boost economic security, social security and geostrategic security. She viewed this as a huge security-enhancing opportunity and every country had the ability to use the energy transition as a national security multiplier. 

“We are seeing an enormous dynamism across emerging market economies driven by China. This boom loop is being driven by enormous investments in green energy. Two-thirds of global investment flowing into renewable energy is driven largely by China,” she said.

Thurbon said that China was taking an interesting approach to building relationships with countries by putting economic engagement on the forefront of what they had to offer.

“China is doing all it can to ensure economic partnership with emerging economies are productive. It’s important to approach alliances as not just political alliances but investment in economy, future and the flourishment of a state,” she said.

The panel criticized global economic treaties and laws, and expressed the need for immediate reforms in economic governing bodies.

“If you are a developing economy, the rules of the WTO, for example, are not helpful for you to develop. A lot of the rules make it difficult to pursue an economic development agenda. These regulations are not allowing the economies to grow,” Thurbon said.

“Serious reform must be made in international trade agreements, economic bodies and rules and guidelines,” she added.

Prasad echoed this sentiment and said there was a need for national and international reform in global economic institutions.

“These institutions are not working very well so we can reconfigure them or rebuild them from scratch. But unfortunately the task of rebuilding falls into the hands of those who are shredding them,” he said.

WEF attendees were invited to join the Global Collaboration and Growth meeting to be held in Saudi Arabia in April 2026 to continue addressing the complex global challenges and engage in dialogue.

Topics: WEF 2026

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