Sovereign wealth funds benefit a nation’s economy and citizens through investments designed for optimal, lasting results
Sovereign wealth funds (SWFs) are reshaping economies through strategic investments that generate long-term national benefits. There are now 179 SWFs worldwide, collectively managing more than $13.2tn in assets, according to a 2024 Sovereign Wealth Research report. Many SWFs operate under double-bottom-line or even triple-bottom-line mandates – meaning that they seek returns, but also resilience, national development and long-term stability. A 2024 BCG report notes the rise of double-bottom-line funds as a global trend, especially among SWFs that align their portfolios with climate goals and socioeconomic development.
One of the world’s largest, most influential SWFs, PIF is designed to achieve cascading benefits for Saudi Arabia and the world – an example of how such funds can drive transformation and prosperity. With approximately $925bn in assets under management, it has formed 103 portfolio companies and created more than 1.1mn direct and indirect jobs domestically and globally. “The PIF Effect” delivers on immediate, economic and human levels to innovate and speed positive impacts. As a catalyst of Vision 2030, Saudi Arabia’s wide-ranging diversification programme, PIF invests in 13 key sectors – including automotive, clean energy and aviation – to promote development and attract private sector participation, fostering economic partnerships worldwide.
Innovation and industrial development: the automotive sector
The automotive industry is a powerful economic driver, linking technological advancement, job creation and industrial development. PIF’s push into this sector is designed to position Saudi Arabia as a global player in mobility and sustainability. Ceer, the country’s first car brand, is a joint venture with Foxconn that embraces electrification and autonomous driving. With a target of creating 30,000 direct and indirect jobs and attracting more than $150mn in foreign direct investment, Ceer aims to contribute $8bn to Saudi Arabia’s GDP by 2034.
The commitment to a robust automotive ecosystem extends further. A joint venture with Pirelli will manufacture high-quality tyres domestically, while a collaboration with Hyundai is expected to produce 50,000 electric and internal combustion engine vehicles annually at a $500mn manufacturing plant. Supporting infrastructure is also advancing, with TASARU Mobility Investments streamlining logistics and supplier efficiencies and the Electric Vehicle Infrastructure Company (EVIQ) working on the roll-out of a nationwide fast-charging network.
PIF is an investor in U.S. luxury EV maker Lucid Group
Advancing clean energy: utilities and renewables
Economic expansion hinges on a stable energy supply. Saudi Arabia is adopting a diversified energy model to include cleaner energy sources for domestic power generation. The country aims to increase renewable capacity to account for 50 per cent of the energy mix by 2030 – through solar, wind and green hydrogen – to secure energy resilience. PIF is the main driver of this goal, given its target to develop 70 per cent of the nation’s renewable energy target by 2030, while creating large-scale employment opportunities.
ACWA Power, a PIF-backed global leader in power generation and desalination, is spearheading projects to deliver clean, affordable energy. ACWA Power is collaborating with Saudi Aramco and the PIF-owned Water and Electricity Holding Company (Badeel) to develop large-scale solar photovoltaic (PV) plants, including the $3.3bn Haden, Muwayh and Al Khushaybi projects. Together with existing facilities such as Sudair and Al-Kahfah, these developments are expected to provide 13.6 GW of solar energy.
Other PIF-owned companies are also accelerating sustainability within tourism and infrastructure. Red Sea Global, a developer of luxury tourism destinations, is constructing hotels designed to be powered entirely by renewable energy. In a BOOT (build, own, operate, transfer) consortium led by ACWA Power, five solar stations were built during The Red Sea’s first phase and 760,000 solar panels were installed last year to support the giga-project’s infrastructure. Additionally, a partnership with Zain KSA has launched the world’s first solar-powered 5G network.
Shebara, the first luxury resort owned and operated by Red Sea Global, is powered entirely by an on-site solar farm
Elevating connectivity and tourism: the aviation sector
With Saudi Arabia receiving more than 100mn tourists in 2023, investments in aviation are key to unlocking economic potential. The development of King Salman International Airport is set to make it one of the world’s largest airports, catering to a projected 120mn travellers annually by 2030. Riyadh Air, a new flagship carrier owned by PIF, will capitalise on the country’s location as a global aviation hub. A major order of 60 Airbus A321 aircraft in 2024 underscores its commitment to operational efficiency and sustainability.
Investments in aviation are strengthening the ecosystem. The Helicopter Company, PIF’s first commercial helicopter operator, provides medical, tourism and private charter services. AviLease, a fast-growing aircraft leasing firm, ensures access to next-generation fuel-efficient aircraft, while an investment in Saudia Technic aims to bolster aircraft maintenance, repair and overhaul capabilities.
The Helicopter Company provides commercial services ranging from emergency medical transport to corporate and tourism travel
The multiplier effect: growth beyond borders
New and emerging industries are positioned to future-proof growth by catalysing and sustaining innovation at multiple levels. Infrastructure investment and local content development are enabling private-sector growth, deepening value chains and enhancing resilience. At the same time, stewardship is raising standards in clean energy and resource efficiency, accelerating progress on climate goals while expanding access to affordable, sustainable energy exports.
Sovereign wealth funds, particularly those with long-term, mission-driven mandates, are increasingly at the forefront of this transformation. “The PIF Effect” exemplifies this shift, reflecting PIF’s role as an investment engine designed to drive economic transformation. By deploying capital at scale across borders, sectors and technologies, PIF means to shape the industries of tomorrow, fostering innovation ecosystems and building bridges for economic cooperation.
Bold partnerships are creating mutual advantage – driving investment, developing future-ready workforces and facilitating high-value technology exchange. Investments are not only delivering impact and opportunity at scale but also generating a powerful ripple effect – multiplying benefits across communities throughout Saudi Arabia and around the world.