Saudi crown prince says PIF to inject $40 bln annually in economy in 2021,2022

. The 34-year-old prince said that PIF managed to double its assets to over 1.3 trillion riyals ($347 billion), from 560 billion, and is on track to achieve a target of 7 trillion riyal worth of assets by 2030. Saudi PIF is backing Prince Mohammed's mega projects such as the flagship tourism project at the Red Sea, planned $500 billion Neom economic zone and the entertainment hub at Qiddya.

Saudi Arabia's Crown Prince Mohammed bin Salman said that the kingdom's sovereign wealth fund, the Public Investment Fund (PIF) will inject 150 billion riyals annually ($40 billion) in the economy in 2021 and 2022, state news agency SPA reported on Thursday. The fund is the main vehicle for boosting Saudi Arabian investments at home and abroad as the young prince, known in the West as MbS, seeks to diversify the kingdom's oil-heavy economy through his Vision 2030 strategy.

"PIF has become one of the key growth drivers for the Saudi economy. Economic diversification is key to the kingdom's sustainability, and we are working hard to achieve this through PIF investments in tourism, sports, industry, agriculture, transportation, mining, space and other sectors," he said in a statement published by SPA. . The 34-year-old prince said that PIF managed to double its assets to over 1.3 trillion riyals ($347 billion), from 560 billion, and is on track to achieve a target of 7 trillion riyal worth of assets by 2030.

Saudi PIF is backing Prince Mohammed's mega projects such as the flagship tourism project at the Red Sea, planned $500 billion Neom economic zone and the entertainment hub at Qiddya. As part of the economic reforms, the Saudi government has expanded the role of PIF, founded in 1971, to finance development projects in the country.

PIF's local investments reached 58 billion riyals in 2019 and it targets to invest 96 billion riyals locally in 2020. It managed over the past few years to create 190,000 jobs, he said. The fund managed to create higher return of investments at a minimum of 7%, from 2% since its establishment, with some investments exceeding 70% and others making a return of more than 140%, he added. ($1 = 3.7504 riyals)