The eighth edition of the Future Investment Initiative (FII) taking place in Riyadh is expected to see deals worth over USD 28 billion, FII’s CEO, Richard Attias, noted.
A Major Global Gathering
Attias revealed that key sectors are expected to see an influx of investment agreements including food, entertainment, renewable energy, cybersecurity, and sports industries.
The global summit is expected to witness participation from over 5,000 people representing around 90 countries, including heads of state, government representatives, and industry leaders in finance, business, and technology.
Sessions from October 29 to 31, under the theme “Infinite Horizons: Investing Today, Shaping Tomorrow,” will cover important topics such as:
– The role of Africa in the global economy.
– Enhancing the role of women in leadership positions.
– Economic stability, equitable development, and combating climate change.
– Artificial intelligence, innovation, and health.
So what
Yasir Al-Rumayyan, Chairman of the FII and Governor of the Public Investment Fund (PIF), mentioned that the initiative has generated deals worth over USD 125 billion since its launch in 2017.
He added that artificial intelligence could contribute approximately USD 20 trillion to the world’s economy by 2030, with the power to transform industries, boost productivity, and address critical global challenges.
Al-Rumayyan said the Kingdom is well-positioned to become a global hub in this essential sector.
He also noted that the lowe energy costs for fossil fuels and renewables will be vital going forward.
Al-Rumayyan pointed out that major players in the energy sector have invested over USD 65 billion in low-carbon technologies since 2017.
It is worth mentioning that the sovereign wealth fund is leading efforts to diversify the Saudi economy through investments amounting to hundreds of billions of dollars, aimed at developing new sectors and creating more sustainable income sources.
However, the fund recently had to scale back some of its “mega projects” due to rising costs.
Some context
This annual event, often called “Davos in the Desert,” is part of Saudi Arabia’s efforts to attract foreign investment to wean the world’s largest oil exporter’s economy from relying on oil revenues.
The international event reflects Saudi ambitions to become a global economic hub amidst rising regional tensions and increasing prospects of military confrontation between Israel and Iran.
It is important to note that Wall Street and Silicon Valley firms are increasingly looking to the oil-rich Middle East at a time when liquidity is shrinking in other parts of the world, particularly China.
Now what
Yasir Al-Rumayyan noted that the Saudi sovereign wealth fund has invested in major local projects over recent years. He mentioned during the first session of the initiative that the share of foreign investments used to hover at around 2% but has increased to 30%.
However, PIF now aims for the percentage to be between 18% to 20% of total assets managed by the fund. This comes as Saudi Crown Prince Mohammed bin Salman, who heads the fund’s board, looks to focus on supporting local ambitions rather than investing that money abroad.
The total assets of the Public Investment Fund stand at almost USD 1 trillion.
