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2025-10-28 17:30:14
[Saudi Arabia's Strategic Shift: Sovereign Funds Shrink to Make Way for Private Capital] ⑴ On Tuesday, Saudi Arabia's Minister of Investment publicly called on the sovereign wealth fund (PIF) to reduce spending on domestic projects to create more space for private sector investment. ⑵ This statement stands in stark contrast to the PIF Chairman's announcement at the same forum last year that the focus on domestic investment would be on Saudi Arabia's economic strategy, indicating that Saudi Arabia is adjusting its economic strategy. ⑶ Although foreign direct investment is expected to grow 24% to $31.7 billion in 2024, with 90% of the funds flowing into non-oil sectors, low oil prices and fiscal deficits have forced the delay or reduction of several flagship projects. ⑷ The CEO of BlackRock Group confirmed that the Jaful gas pipeline project was five times oversubscribed, reflecting the high level of international capital interest in Saudi Arabia's transformation plan.
