PIF Launches Local Content Growth Program to Grow Competition and Innovation in the Private Sector

The Public Investment Fund (“PIF” or the “Fund”) today announced the launch of its Local Content Growth Program which aims to leverage PIF spending to catalyze the development of at-scale, competitive, and innovative sectors and industries in Saudi Arabia. The Program will aim to achieve the Fund’s aspiration of increasing its contribution to the Saudi economy by increasing PIF and its affiliates’ contribution to local content to 60% by the end of 2025, thereby enabling and supporting the country’s private sector in line with Saudi Arabia’s Vision 2030.
The Program also includes a Local Content Policy, in which PIF’s portfolio companies will encourage and support local products and services from project design stage to implementation, with priority given to private sector service providers and suppliers based on the size of their contribution to local content. With progress reported on a regular basis, this will support the competitiveness of local industries, driving innovation and confidence in local materials and designs.
The announcement comes at the sixth Edition of the Future Investment Initiative (FII) in Riyadh.
Jerry Todd, Head of the National Development Division at PIF, said, “Launching the PIF Local Content Growth Program strengthens PIF’s position as a key enabler of a thriving private sector and a more resilient domestic economy in Saudi Arabia. This move will help build local capabilities, create opportunities for private sector players across the value chain, and build on Saudi Arabia’s position at the regional and global level in line with Vision 2030.”
In 2021, PIF’s portfolio companies awarded SAR140 billion worth of contracts to local private sector companies, nearly 60% of which went to the construction materials and services, information technology and telecommunications, and financial services sectors. This initiative is in line with PIF’s strategic objective of building partnerships with and enabling the private sector to boost Saudi Arabia’s GDP and create jobs in strategic sectors.
The National Development Division was created to support PIF’s contribution to the local economy by defining PIF’s strategic directions regarding Saudi Arabia’s economic and social development, and evaluating the economic impact of PIF’s strategy and investments.
PIF has launched several initiatives to grow competitive and innovative industries in Saudi Arabia, focusing on its 13 strategic sectors. It facilitates creation of investment opportunities for local players, strengthens supply chains, creates high value jobs, and stimulates the local private sector.
About PIF
The Public Investment Fund (“PIF” or the “Fund”) is one of the largest and most impactful sovereign wealth funds in the world. Since 2015, when the Board was reconstituted and oversight transferred to the Council of Economic and Development Affairs, the Fund’s board of directors has been chaired by His Royal Highness Crown Prince Mohammad bin Salman bin Abdulaziz Chairman of the Council of Economic and Development Affairs, and Chairman of the Public Investment Fund. The Fund plays a leading role in advancing the Kingdon of Saudi Arabia’s economic transformation and diversification, as well as contributing to shaping the future of the global economy. Since 2017, the Fund has established 58 companies and created, directly and indirectly, more than 500,000 jobs as at the end of 2021.
PIF is building a diversified portfolio by entering into attractive and long-term investment opportunities in 13 strategic sectors in the Kingdom of Saudi Arabia and globally. The Fund’s strategy, as set out in the PIF Program 2021-2025 – one of the Vision 2030 realization programs – aims to enable many promising sectors and contribute to increasing local content by creating partnerships with the private sector, in addition to injecting at least 150 billion riyals annually into the local economy. PIF works to transfer technologies and localize knowledge to build a prosperous and sustainable economy in the Kingdom of Saudia Arabia. As the investment arm of the Kingdom of Saudi Arabia, the Fund looks to make unique investments, and is building strategic alliances and partnerships with prestigious international institutions and organizations, which contribute to achieving real long-term value for the Kingdom in line with the objectives of Vision 2030. PIF has also created an operational governance model that reflects its main tasks and objectives, in line with best international practices. Applying this model of governance enhances the level of transparency and effectiveness in decision-making and future progress.