In 2016, Saudi Arabia enacted Vision 2030, an economic diversification plan met with skepticism due to the Kingdom's longstanding reliance on oil.
Seven years on, the Vision has significantly developed its non-oil sectors and energized the economy with new industries, supported by the sovereign wealth fund, the Public Investment Fund (PIF).
The PIF directs investments into pivotal local and international projects, invigorating both government and private enterprises and prompting substantial economic transformation within Saudi Arabia.
The fund has credit for launching more than 79 companies and creating over 500,000 jobs, holding over $700 billion in assets under management as of 2023.
Here's a summary of the PIF's major 2023 initiatives driving Saudi Arabia's economic growth:
1. DAN CO.: Launched in December, this PIF-created company aims to boost ecotourism and agricultural tourism in Saudi Arabia. Dan Co. plans to contribute $1.6 billion by 2030, developing high-end resorts in partnership with local communities, starting with a diverse resort complex in Al-Ahsa.
2. TASARU MOBILITY INVESTMENTS: With an October launch, Tasaru focuses on enhancing the Saudi automotive landscape through strategic investments. Its inaugural venture is an automotive logistics hub in King Abdullah Economic City, backed by influential Saudi corporations.
3. AL BALAD DEVELOPMENT CO.: This company seeks to transform Jeddah's historic district into a cultural and economic hub, generating residential and hospitality spaces alongside commercial developments in line with Vision 2030.
4. SRJ SPORTS INVESTMENT CO.: Joining the sports industry in August, SRJ focuses on developing sports events and scaling up the Middle East's sports sector, including an investment in the Professional Fighters League for regional influence.
5. SAUDI FACILITY MANAGEMENT CO. (FMTECH): Established in August, FMTECH serves Saudi Arabia's facilities sector, offering maintenance and management services across various industries.
6. SAWANI CO.: In July, Sawani began efforts to advance Saudi camel farming, working with the private sector to enhance production and implement new technologies, including the rollout of the "Noug" camel milk brand.
7. SAUDI TOURISM INVESTMENT CO. (Asfar): As initiated in July, Asfar is set to boost tourism investments and support small and medium-sized enterprises in developing hospitality, retail, and dining attractions throughout the Kingdom.
8. LIFERA: The Pharmaceutical Investment Co., under the acronym Lifera, joined the healthcare scene in June, focusing on manufacturing essential pharmaceuticals. In collaboration with Sanofi and Arabio, it aims to expand local
vaccine production.
Besides these initiatives, the PIF made significant equity investments, acquiring stakes in Rocco Forte Hotels, a 10% share of Heathrow Airport, and increased its holdings in Aston Martin. These strategic moves signal optimism and align with the Kingdom's Vision 2030 objectives, encouraging a dynamic workforce to contribute to the nation's ambitious goals.