The PIF is of strategic nature for Saudi Arabia since it is part of its economic reform plan. The fund aims to invest in educational and medical projects and create 20,000 jobs in the next two years.
On Tuesday, the managing director of Saudi Arabia’s Public Investment Fund (PIF) stated, it will contribute $20 billion to a $50 billion fund along with Blackstone, a U.S. private equity firm.
During a major investment conference in Riyadh, PIF disclosed that the fund will invest in “conventional economy” sectors including education and medical, said Yasir Al Rumayyan.
In May, BlackStone and PIF had announced the execution of a memorandum of understanding (MOU) for the launch of an infrastructure investment vehicle with an anchor $20 billion contribution by PIF.
This is part of the Kingdom’s economic reforms which it began last year as part of a strategic plan to finance development projects in the country.
As a result of it, 20,000 jobs created by 2020 said Al Rumayyan.
“With our short term plans, we will have more than 20,000 jobs in 2020 and beyond it’s going to be a lot more.”
The Public Investment Fund (PIF) has a portfolio made up of listed holdings, but also unlisted equity investments, international investments, real estate, loans, bonds and sukuk.