The Clap
The Public Investment Fund plans to invest significantly in the semiconductor and space sectors during the current year. This is part of Saudi Arabia’s plans aimed at diversifying its economic sources away from oil.
What
Minister of Communications and Information Technology, Abdullah Alswaha, revealed on the sidelines of the World Economic Forum held at the Swiss Resort of Davos that the Saudi Fund is seeking to establish a national space company.
This company will be involved in investing and acquiring assets in the space sector. The minister, who also chairs the board of the Saudi Space Agency, added that the space industry is “mature now” for mergers and acquisitions.
So What
In 2018, the Kingdom launched its space program, and last year it sent astronauts into space as part of a broader plan to invest in the sector.
Alswaha pointed out that his country is striving to become a “regional and then global leader in the new space economy,” which is valued at a trillion dollars.
Some Context
The Public Investment Fund represents one of the key pillars in the plan of Crown Prince Mohammed bin Salman, aimed at bringing about a radical change in the Saudi economy and reducing its reliance on oil sales. The fund has managed to accumulate assets of around $700 billion in a short period after substantial spending in various sectors. It is currently working towards managing assets reaching a trillion dollars by the year 2025.
