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It is a mixed bag for Saudi in the foreign press today, with PIF’s spending shift, the Kingdom’s renewable energy ambitions, potential weaponry from the US, and an expulsion of Iranian media crew in Saudi all making the rounds.
#1- The Public Investment Fund’s renewed appetite for domestic spending has international asset managers worried it may be deploying less capital abroad, Bloomberg reports citing people it says are familiar with the matter. With a USD multi-bn pipeline of giga-projects at home — think USD 500 mn development Neom — the deep-pocketed wealth fund may be shifting its focus away from passive outflows into “global private equity, infrastructure and hedge funds,” the sources said.
REMEMBER- The PIF is ramping up its annual deployment capacity to USD 70 bn a year starting 2026, out of which 25% are set to be earmarked for international investment, and c. 70% earmarked to drive economic growth and diversification at home, governor Yasir Al Rumayyan had said at the FII Priority conference in Miami in February. This is a big step-up from its current annual spending clip of USD 40-50 bn.
What could be on Rumayyan’s mind: The PIF could opt to focus on injecting capital in leading firms abroad, two unnamed executives at two private equity firms told the business news service. It could also explore investments in local companies with a solid market base, they said.
#2- Meanwhile, Forbes claims to know which advanced weaponry Saudi may be getting out of its pending defense pact with the US, basing its predictions on Saudi’s previous military purchase history from the US. Those include the F-15SA Saudi Advanced fighters which was the most advanced multirole strike fighter until recently or the more advanced F-15EX Eagle II developed by the US for Qatar.
#3- The Kingdom’s ambitious plan to rely on renewables for 50% of its electricity generation by 2030 is the subject of a piece in The New York Times exploring Saudi’s renewables potential the obstacles the Kingdom may face on the road.
