Saudi Arabia’s Sovereign Wealth Fund To Cut Overseas Investments By A Third, Focus On Domestic Growth

Riyadh: In a strategic shift to fuel domestic economic growth, Saudi Arabia’s Public Investment Fund (PIF) plans to reduce its overseas investments by approximately one-third, Governor Yasir Al-Rumayyan announced at the annual Future Investment Initiative (FII) conference in Riyadh. Speaking to an audience of global business, technology, and finance leaders, Al-Rumayyan emphasized that the sovereign wealth fund’s priority is now to support Saudi Arabia’s economic transformation, decreasing international investments from the current 30% to between 18% and 20% of the fund’s $925 billion portfolio.

The PIF, a crucial player in the Kingdom’s Vision 2030 initiative to diversify its economy beyond oil, is redirecting resources to boost domestic sectors such as technology, tourism, and infrastructure, reflecting the Kingdom's goal of achieving economic independence from oil revenues.

The FII conference, which has attracted an array of influential global leaders and investors, serves as a premier networking venue for establishing new partnerships with Saudi Arabia’s biggest companies and investment platforms. However, this year’s summit arrives amid heightened regional tensions, prompting discussions on the resilience of Saudi Arabia's ambitious economic reforms against a backdrop of potential Middle Eastern conflict.

The PIF’s shift in focus underscores Saudi Arabia’s commitment to building a self-sustained economy, reducing reliance on volatile oil markets, and driving innovation within its borders. The Kingdom hopes that its Vision 2030 transformation, backed by the PIF’s strategic domestic investments, will position Saudi Arabia as a key player in the global economy’s shift toward a sustainable, diversified future.