Is the PIF crowding out the private sector? 
The Public Investment Fund, the sovereign investment arm of 黑料社区, was established in 1971 to initially help establish companies of foundational importance to the Saudi economy.
The fund underwent restructuring in 2015 and was placed under the direction of the Council of Economic and Development Affairs and chaired by Crown Prince Mohammed bin Salman.
The PIF announced its investment program (2018-2020) in 2017 and its strategy and Vision Realization Program (2021-2025) in 2021, drawing a solid investment roadmap for the fund.
These programs have enabled the fund to diversify its investment portfolio locally and abroad and achieve rewarding returns within acceptable risks.
The restructuring was a significant step in the PIF鈥檚 investment journey since it provided the fund with greater autonomy and better-defined national strategic responsibilities.
It went together with the Kingdom鈥檚 Vision 2030, as it positioned the fund to be a key driver for the reform plan in achieving positive economic and social change.
Over the past seven years and since the restructuring of the fund, the assets under management have grown from $152 billion to $620 billion as of the first quarter of 2022, and it is on track to achieve $2 trillion by 2030.
The PIF was able to improve the return on its investment portfolio significantly from 2 percent to a minimum of 7 percent.
Additionally, the PIF succeeded in establishing 71 companies operating in the 13 economic sectors it has targeted.
The fund was able to create over 500,000 new job opportunities for Saudi nationals (both male and female), which has helped significantly in reducing the unemployment rate in the Kingdom.
The fund was able to create over 500,000 new job opportunities for Saudi nationals (both male and female), which has helped significantly in reducing the unemployment rate in the Kingdom.
The PIF injected $40 billion into the Saudi economy in 2021 and 2022, making it a key growth driver.
Achieving such outstanding results has not only made the PIF the main vehicle for boosting investments in the Kingdom and abroad but also has contributed greatly to diversifying the Kingdom鈥檚 economy away from oil.
The PIF鈥檚 strategy has focused on investing in projects that are unique and that comply with environmental, social and governance requirements. 听
For example, one of the most prominent giga-projects of the PIF is NEOM, located in the Red Sea 鈥 an audacious vision of what a new future might look like, especially when considering that it will provide a plethora of unique development opportunities.
The solid investment strategy of the PIF, the distinctiveness of its projects and its strong financial position have earned the fund the respect and recognition of prominent international rating agencies.
Moody鈥檚 Investors Service has changed the PIF鈥檚 credit rating outlook to 鈥減ositive鈥 and affirmed the fund鈥檚 A1 issuer rating.
It is important to note that PIF is not in any way competing with the private sector, since its financial strength and longstanding experience in creating and managing businesses will support the growth and development of the private sector. 听
Also, it will stimulate the sector to meet the Kingdom鈥檚 Vision 2030, raising its contribution to the gross domestic product to 65 percent by 2030.
鈥 Talat Zaki Hafiz is an economist and financial analyst. Twitter: @TalatHafiz
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