Saudi Arabia has doubled down on its investment diversification strategy, allocating a further 100 billion Saudi riyals (Dh97.92bn) for its sovereign wealth fund following several high-profile tech investments.
King Salman issued a directive allocating the funds from the country’s reserves for the Public Investments Fund (PIF), “aiming to diversify the investment portfolio and improve the revenues of investment”, according to a statement by the Saudi Press Agency on Wednesday.
The sovereign wealth fund will draw on the additional funds to pursue investment opportunities in both domestic and international markets, the statement said, “particularly some expected high-yields opportunities in the local market that supports the private sector investments and promote economic growth”.
The extension of extra credit to the PIF reaffirms the government’s commitment to bolstering overseas investments as a means of lessening the country’s reliance on oil revenues.
“The government is aggressively pursuing its investment diversification plan,” John Sfakianakis, the director of economic research at the Gulf Research Center, told Bloomberg.
“It also sends a powerful message that the local economy is seen as a tremendous opportunity and will boost private sector confidence after a series of government spending cuts.”
News of the government cash injection, coupled with increased investor confidence ahead of on Wednesday’s landmark oil production deal in Vienna, sent Saudi shares soaring to their highest level of the year so far. More info