PIF Seeks to Invest $66 Bln Annually on New Saudi Projects

The PIF Governor holds a press conference on Tuesday. (SPA)
The PIF Governor holds a press conference on Tuesday. (SPA)
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PIF Seeks to Invest $66 Bln Annually on New Saudi Projects

The PIF Governor holds a press conference on Tuesday. (SPA)
The PIF Governor holds a press conference on Tuesday. (SPA)

The Governor of the Public Investment Fund (PIF), Yasir bin Othman Al-Rumayyan, stressed on Tuesday that the Fund was seeking to invest between SAR150 and 200 billion (USD66 billion) annually in new projects in Saudi Arabia.

Al-Rumayyan held a press conference to highlight the size of the remarkable growth and development of the PIF, which has become a major engine in achieving the Kingdom's Vision 2030 and a catalyst for diversifying the local economy's resources away from oil, reported the Saudi Press Agency (SPA).

He held the briefing days after the Board of Directors of the PIF approved, Under the chairmanship of Crown Prince Mohammed bin Salman bin Abdulaziz, Deputy Prime Minister and Chairman of the Council of Economic Affairs and Development, the Fund's five-year strategy.

Al-Rumayyan presented the most prominent achievements of the Public Investment Fund during the past four years, the importance of the impact on the local economy, the features of the Fund’s strategy for the next five years 2021-2025 and the future goals of the fund.

The PIF, he said “renews commitment to continue working to support development and economic diversification efforts in Saudi Arabia and to achieve the goals of the Kingdom's Vision 2030 in building an integrated economy for generations.”

The Fund has witnessed an important shift in its development process, in order to activate its strategic role in diversifying sources of income and non-oil revenues, he continued. In the past four years, it realized domestic and global investments, and today, it has become a main pillar in achieving financial and developmental sustainability of the Saudi economy.

Al-Rumayyan said the Fund's efforts are not limited to developing the Kingdom's wealth by investing in financially viable projects only, but also to new sectors through which it aims to enhance the growth of promising sectors and achieve a sustainable economic and development impact.

He stated that the Fund has made great achievements between 2018 and 2020. It contributed to achieving a clear impact at the local and global levels, such as raising the volume of assets by the end of 2020 to nearly SAR 1.5 trillion, and achieving a significant increase in the total shareholder return, which doubled from about 3% in the period between 2014 and 2016 to about 8% between 2018 and 2019.

On the most prominent targets of the new strategy, Al-Rumayyan said that the Fund aspires to achieve its goals by the end of 2025 that support the achievement of the Kingdom's ambitions to diversify the economy and develop new sectors.

This include raising the value of its assets under management to SAR 4 trillion, SAR 1 trillion cumulative investment in new projects locally and raising the percentage of investments in new sectors of the fund’s assets from 15% in 2020 to 21% in 2021. These targets will help the PIF’s contribution to non-oil GDP by SAR 1.2 trillion cumulatively, creating 1.8 million jobs, in addition to contributing to local content to reach 60% of the Fund and its subsidiaries.

On the local priority sectors, Al-Rumayyan said that during the next five years the Fund aims to focus on 13 vital sectors such as food, agriculture, aviation, defense, entertainment, tourism, sports, minerals, mining, transportation, logistics, financial services and others.

He explained that the selection of these sectors was evaluated based on the local and global perspective in terms of analyzing the attractiveness of the market, its size, expected growth and available opportunities, evaluating the sectors in which the Kingdom has a potential for development and a competitive advantage at the regional and global level, its impact on the economy, and prioritizing the sectors according to the Vision 2030 and its realization programs.

Al-Rumayyan said three main pillars are developed by the fund, namely, an investment pillar aimed at launching and developing local sectors, developing local real estate projects, developing major projects, developing and diversifying the assets of the PIF. The second pillar is value-realization that supports national development and enables Vision 2030, developing aspects of cooperation between investment portfolios and diversifying sources of financing and strengthening the financial position of the fund. The third is an institutional pillar to strengthen the institutional system of the PIF.

Al-Rumayyan said that over the past three years, the PIF and its subsidiary companies invested more than SAR 170 billion, created 331,000 direct and indirect jobs, until the end of the third quarter of 2020. These investments covered 10 vital sectors, such as real estate development, infrastructure, tourism, hospitality, entertainment, transportation, transportation, recycling, renewable energy and others.

He underscored the importance of the Fund investing in emerging international companies or in future industries would pave the way for the transfer of international expertise to Saudi Arabia. He cited the Fund’s partnership with The Lucid Company, which benefitted a number of Saudi graduates in gaining knowledge of the electric vehicle industry.

PIF seeks to support private sector investment opportunities, and creating partnerships to contribute to the Kingdom's economic development, he stressed The Fund has developed important strategic partnerships with the private sector through major projects, infrastructure projects and others, to boost many important sectors such as housing, hospitality, tourism and entertainment.



Is Black Friday Still a Holiday Shopping Juggernaut in 2024?

People wait in a queue to enter the Lego store during Black Friday shopping in New York, New York, USA, 29 November 2024. (EPA)
People wait in a queue to enter the Lego store during Black Friday shopping in New York, New York, USA, 29 November 2024. (EPA)
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Is Black Friday Still a Holiday Shopping Juggernaut in 2024?

People wait in a queue to enter the Lego store during Black Friday shopping in New York, New York, USA, 29 November 2024. (EPA)
People wait in a queue to enter the Lego store during Black Friday shopping in New York, New York, USA, 29 November 2024. (EPA)

After weeks of pushing early deals, retailers in the United States and some other countries tried to seduce customers with promises of bigger discounts on Black Friday, the sales event that still reigns as the unofficial kickoff of the holiday shopping season even if it's lost some luster.

Department stores, shopping malls and merchants — big and small — see the day after Thanksgiving as a way to energize shoppers and to get them into physical stores at a time when many do the bulk of their browsing and buying online.

Enough consumers enjoy holiday shopping in person that Black Friday remains the biggest day of the year for retail foot traffic in the US, according to retail technology company Sensormatic Solutions.

“Black Friday is still an incredibly important day for retailers,” Grant Gustafson, head of retail consulting and analytics at Sensormatic, said. “It’s important for them to be able to get shoppers into their store to show them that experience of what it’s like to browse and touch and feel items.”

At Macy’s Herald Square in Manhattan, a steady stream of shoppers early Friday found some shoes and handbags priced half-off, special occasion dresses marked down by 30%, and 60% off the store's luxury bedding brand.

Keressa Clark, 50, and her daughter Morghan, 27, who were visiting New York from Wilmington, North Carolina, arrived at 6:15 a.m. at the store that served as the setting for the 1947 Christmas movie “Miracle on 34th Street.”

“We don’t have a Macy’s where we are from. I am actually shocked to see so many Black Friday deals because so many things are online,” Morghan Clark said.

Clark, who works as a nurse practitioner, said she was feeling better about the economy because of President-elect Donald Trump’s pending return to the White House and plans to spend $2,000 this holiday season, about $500 more than a year ago.

She said she would not mind if prices are higher next year as a result of the tariffs on foreign-made goods Trump has pledged to implement. “Anything that can encourage production in the US I am all for it,“ Clark said.

In the US, analysts envision a solid holiday shopping season, though perhaps not as robust as last year’s, with many shoppers cautious with their discretionary spending despite the easing of inflation.

At many stores, the frenzied crowds of Black Fridays past never returned after the coronavirus pandemic. Early Friday morning, a Walmart in Germantown, Maryland, had only half of the parking spots filled. Some shoppers were returning items or doing their routine grocery shopping.

Bharatharaj Moruejsan, a 35-year-old software engineer, said he typically doesn't shop on Black Friday but decided to check out the deals at Walmart because he was jet-lagged after returning from a month-long family vacation to India. He scored an iPad for his 1-year-old daughter for $250 compared to the original $370 price tag.

“That’s a good deal,” Moruejsan said.

Retailers are even more under the gun to get shoppers in to buy early and in bulk since there are five fewer days between Thanksgiving and Christmas this year.

Target had an exclusive book devoted to Taylor Swift's Eras Tour and a bonus edition of her “The Tortured Poets Department: The Anthology” album that it said would only be available in stores on Black Friday. Customers can buy them online starting Saturday.

Best Buy has introduced an extended-release version of the doorbuster, the limited-time daily discounts that for years were the rage and sometimes sparked brawls. The United States’ largest consumer electronics chain has released doorbuster deals every Friday since Nov. 8 and planned to continue the weekly promotion through Dec. 20.

Impulse purchases and self-gifting were potential areas for big sales growth, said Marshal Cohen, chief retail advisor at market research firm Circana. Shoppers are three times more likely to buy on impulse at a physical store than online, according to Circana research.

Tara Rutherford, 53, headed straight to Macy's Herald Square to shop for herself after finishing her overnight nursing shift at a Manhattan hospital. A newlywed, Rutherford said she rarely shops on Black Friday because of her work schedule but was “feeling festive.”

“This is all about me," she said, eyeing boots that carried a 40% discount.

Black Friday no longer is an American-only holiday event. Retailers in Australia, Canada, France, Germany and the UK also appealed to holiday shoppers looking to save money.

In India, about 200 Amazon warehouse workers and delivery drivers, rallied Friday in New Delhi, some wearing masks of Amazon chief Jeff Bezos, to demand better wages and working conditions. Similar protests were planned in other countries.

Camilla Bjorkqvist, 48, and her friend Tessa Goosens, 48, were visiting New York from the Netherlands to spend the Thanksgiving weekend with friends and to shop at Macy’s. Even though Black Friday has become a commercial event in The Netherlands, the women said it's not the same.

“Macy’s is special. It’s iconic,“ said Goosens, who bought a Samsonite suitcase and a suit for work on sale.

The National Retail Federation predicted that shoppers would increase their spending in November and December by between 2.5% and 3.5% over the same period a year ago.

Vivek Pandya, the lead analyst at Adobe Digital Insights, said more shopper interest in bargain-hunting this year would drive what sells and when.

For example, Thanksgiving Day is the best time to shop online to get the deepest discount on sporting goods, toys, furniture and appliances, according to Adobe's analysis. But Black Friday is the best time to buy TVs online. People shopping for televisions earlier in the season found discounts that averaged 10.8%, while waiting until this Friday is expected to yield 24% discounts, Adobe Digital Insights said.

Cyber Monday, however, is expected to be the best time to buy clothing and gadgets like phones and computers online.

Across the board, Black Friday weekend discounts should peak at 30% on Cyber Monday and then go down to around 15%, according to Adobe’s research.