Public Investment Fund

Saudi Arabia US$ 5.3 Billion
Established: 2008
Transparency Rating: 4
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Origin: Oil
Firm Investment Style: N/A
Entity Structure: Fund
Population Est.: 29.2 million – 2012
Wealth Per Capita Est.: $181.50
Summary
The Public Investment Fund (PIF) was originally established in 1971 to facilitate the development of the Saudi Arabian national economy. In 1974, PIF was mandated to hold equity positions in joint-stock ventures within its domestic economy. In 2008, PIF will manage and fully own a new sovereign wealth fund. The new sovereign wealth fund managed by the PIF will take on a long term investment horizon similar to that of most sovereign wealth funds.

The fund created Sanabil Investments. Sanabil is a closed joint stock company with a share capital of twenty billion (20,000,000,000) Saudi Riyal and is headquartered in the city of Riyadh. Sanabil Investments seeks to realize sustainable superior returns based on long-term investment strategies built on diversification of investments, optimizing risk management and careful selection of investment opportunities.

Background
The Public Investment Fund (PIF) was established by Royal Decree No. M/24, dated 25-06-1391H corresponding to 17-08-1971. The purpose of establishing PIF was to provide financing support to productive projects which are of a commercial nature and are strategically significant for the development of the national economy and cannot be implemented by the private sector alone either because of insufficient experience or inadequate capital resources or both.

Main Office
Ministry Of Finance Compound
Building No.2
6Th Floor
Riyadh
Kingdom Of Saudi Arabia

Mailing Address
P. O. Box # 6847
Riyadh 11452
Kingdom of Saudi Arabia
Tel: 009661-4050000/2006[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Strategy & Objectives
The portfolio of the PIF includes mostly loans, equity interests in national firms and equity shares in corporations.

Governance
The general secretariat assumes the responsibility of receiving and verifying applications and of reviewing and appraising studies conducted by concerned parties of the proposed projects in order to ensure the feasibility and profitability of the projects with respect to the national economy. It also proposes allocations to be earmarked in the budget for the replenishment of PIF resources and approval of its financial position.

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