Saudi Arabia is set to channel the vast majority of its $925 billion sovereign wealth fund into domestic investment as part of a new five-year strategy aimed at accelerating economic transformation and strengthening national industries.

The Public Investment Fund will focus heavily on projects within the kingdom, supporting infrastructure, technology, tourism and other key sectors aligned with Saudi Arabia’s long-term development objectives.

The move reflects a strategic shift toward maximising internal growth and reducing reliance on external markets.

Officials have indicated that the plan is designed to drive sustainable economic expansion, create employment opportunities and enhance the country’s global competitiveness.

By directing capital into local initiatives, the fund aims to play a central role in advancing diversification efforts beyond the traditional oil sector.

The strategy forms part of a broader national vision to modernise the economy and build new sources of revenue.

Major projects backed by the fund are expected to contribute to urban development, innovation ecosystems and large-scale infrastructure, reinforcing Saudi Arabia’s position as a leading investment destination.

While international investments will continue, the emphasis on domestic deployment signals a recalibration of priorities, with a stronger focus on long-term value creation within the kingdom.

Analysts note that this approach could accelerate economic resilience while supporting structural reforms.

The initiative underscores the growing importance of sovereign wealth funds in shaping national economic strategies, as governments leverage financial resources to achieve ambitious development goals and respond to evolving global conditions.