Posted on: 8th May 2026

What is the Saudi Public Investment Fund?

Saudi Arabia is reshaping its economy. Driving this change is the Saudi Public Investment Fund (PIF), one of the world's largest sovereign wealth funds.

If you are considering investing in Saudi Arabia, understanding the Public Investment Fund is essential. The PIF shapes sectors, directs investments, and defines long-term national objectives.

This article covers what the Public Investment Fund is, how it works, and why it is important.

What is a sovereign wealth fund?

To understand the Saudi PIF, or Public Investment Fund, you first need to understand what a sovereign wealth fund is.

A sovereign wealth fund is an investment fund owned by a government. These funds invest in assets both inside the country and around the world, including:

• Public equities

• Private companies

• Infrastructure

• Real estate

• National projects

Their main purpose is to support national goals and generate financial returns. The Saudi Public Investment Fund is a leading example of this approach.

What is the Saudi Public Investment Fund?

The Saudi Public Investment Fund, or PIF, is Saudi Arabia’s sovereign wealth fund. It invests in key sectors at home and abroad, and plays a major role in driving Saudi Vision 2030.

Owned by the Saudi government, the PIF is one of the world’s largest and most active sovereign wealth funds.

Saudi Public Investment Fund quick facts

• The fund was established in 1971.

• It is responsible for carrying out national projects and helping the economy grow.

• The PIF is one of the world’s largest sovereign wealth funds, managing over $925 billion in assets under management.

• The fund has created more than 1 million jobs in Saudi Arabia and around the world.

The role of the Saudi Public Investment Fund in Vision 2030

Vision 2030 is Saudi Arabia’s long-term plan to move its economy beyond oil and grow the private sector. The PIF is central to reaching these goals.

The Saudi Public Investment Fund supports Vision 2030 by:

• Developing new sectors such as tourism, entertainment and technology

• Funding large-scale infrastructure and giga projects

• Stimulating non-oil GDP growth

• Creating employment opportunities for Saudi nationals

The PIF does more than invest money. It also acts as a market maker, helping to lower risk and attract more capital from private investors.

How the Saudi Public Investment Fund works

The PIF follows a broad investment strategy, investing in projects both in Saudi Arabia and abroad.

Domestic investments

In Saudi Arabia, the Public Investment Fund mainly works to create new areas of the economy that do not rely on oil.

• Large-scale ‘giga-projects’

• Local infrastructure and urban development

• Tourism and hospitality

• Renewable energy

• Technology and digital transformation

These investments aim to build lasting industries for future growth. Many large projects and sectors begin with PIF support before attracting private investment.

International investments

Internationally, the Saudi PIF invests in both public and private markets. Its global strategy includes:

• Equity stakes in global companies

• Investments in venture capital funds, private equity, and financial institutions

• Global infrastructure related to transport, energy, and logistics

• International sports and partnerships

This gives a general overview of how the PIF works. For a broader look at how investments work, read our guide.

Key sectors backed by the Saudi Public Investment Fund

The PIF’s portfolio is made up of over 220 companies across 13 strategic sectors. Below is an overview of the key sectors.

Tech and innovation

The Public Investment Fund aims to make Saudi Arabia a centre for innovation.

Recent data shows the fund owns large stakes in major tech companies like Uber, Electronic Arts (EA), and Claritev Corporation. The PIF also plans to make Saudi Arabia an AI hub by launching HUMAIN in 2025.

HUMAIN, a company owned by the PIF, provides a range of AI services, products, and tools. The PIF has also teamed up with NVIDIA and AMD to build AI factories in Saudi Arabia.

Renewable energy and sustainability

Saudi Arabia is working towards cleaner energy sources. PIF-backed renewable energy projects help meet environmental goals and build new industries.

Tourism and entertainment

Saudi Arabia wants to attract more visitors. The goal is to raise the number of tourists each year from 41 million to 120 million by 2030.

The PIF supports large projects to attract international visitors and offer more leisure options at home. Key investments include esports events, leisure parks, and professional sports teams.

Infrastructure and giga projects

Major transport, logistics, and urban development projects often start with PIF investment.

These large 'giga projects' change the economic landscape and make Saudi Arabia more competitive. Examples include NEOM, a futuristic city project, and Red Sea Global, a sustainable tourism destination.

Financial services

The Saudi Public Investment Fund helps grow the country’s financial services sector, which is expected to make up 4.7% of Saudi GDP by 2030.

The PIF owns the Saudi Tadawul Group, which runs the Saudi Stock Exchange. The fund also holds shares in major financial companies like Saudi National Bank (SNB).

Sports and partnerships

Vision 2030 aims to make Saudi Arabia a global sports hub. To support this, the PIF invests billions in international sports like football, golf, tennis, boxing, and motorsports.

Some key investments include:

• Golf: Owns LIV Golf

• Football: A majority stake in Newcastle United and Saudi Pro League teams

• Tennis: Partnership with the ATP and WTA

• Boxing: Organised some of the biggest events in the sport's recent history

• Motorsport: Investments and sponsorship in Formula 1 and Formula E

Why the Saudi Public Investment Fund matters for investors

Expats and foreigners can invest in or alongside the Saudi Public Investment Fund.

One main way to invest is through the Saudi Stock Exchange (Tadawul), where you can buy shares in public companies that form the PIF’s portfolio. Another option is the PIF Public Sector (PS) Hub.

In recent years, the PIF portfolio has outperformed the Saudi Exchange. Since 2017, the PIF portfolio has returned an average of 7.2% per year, while the Tadawul All Shares Index averaged about 4.9%.

Beyond portfolio returns, the Public Investment Fund in Saudi Arabia also acts as a guide. When the PIF invests in a sector, it often attracts more private investment.

For investors, knowing where and how the PIF invests can help spot growth opportunities in the Saudi economy.

Final thoughts

The Saudi Public Investment Fund is at the centre of the Kingdom's economic transformation, shaping its future.

For international investors, the PIF offers both insight and opportunity. It shows long-term national priorities, reduces market risk in new sectors, and shapes the wider investment environment.

It’s important to choose the right types of investments based on your risk tolerance and goals. To learn more or start your investment journey with Holborn Assets, visit our investments page and talk to one of our expert advisers.