Saudi Arabia's Public Investment Fund

Saudi Arabia's Public Investment Fund (PIF) is a Sovereign Wealth Fund based in Riyadh, Saudi Arabia. The PIF was originally established in 1971 to facilitate the development of the Saudi Arabian national economy. In 1974, PIF was mandated to hold equity positions in joint-stock ventures within its domestic economy. In 2008, PIF managed and fully owned a new sovereign wealth fund. The fund has expanded its coverage of domestic and overseas investments in industries to real estate, petrochemicals and technology. The purpose of establishing the fund is to provide financing support to productive projects which are of a commercial nature and are strategically significant for the development of the national economy and cannot be implemented by the private sector alone either because of insufficient experience or inadequate capital resources or both. PIF's primary function is to finance investments in productive projects having a commercial character whether belonging to the government in total or in partial and its industrial lending institutions, or to public enterprises, and whether these projects are undertaken independently or in partnership between the said administrative authorities and private sector entities. The general secretariat assumes the responsibility of receiving and verifying applications and of reviewing and appraising studies conducted by concerned parties of the proposed projects in order to ensure the feasibility and profitability of the projects with respect to the national economy. It also proposes allocations to be earmarked in the budget for the replenishment of PIF resources and approval of its financial position. The assets of the fund are managed by Finance Ministry of Saudi Arabia.