Custodian of the Two Holy Mosques King Salman on Wednesday approved the allocation of SR100 billion ($26.67 billion) from the Kingdom's reserves to the Public Investment Fund (PIF), according to a statement carried by Saudi Press Agency. The funds will be used to support both foreign and local investments and diversify the investment portfolio. PIF explained that, according to its investment strategy, it will focus on a number of promising opportunities in the domestic and international markets, particularly some expected high yields opportunities in the local market that supports private sector investments and promotes economic growth and local content. The allocated funds would be invested in phases and in light of the Kingdom's Vision 2030. Such investments are expected to have a positive impact on the overall investment revenues and the diversification of the national income resources as well, PIF said. Under economic reforms announced early this year, the Saudi government said it aims to expand the PIF, founded in 1971 to finance development projects in the country, from $160 billion to about $2 trillion by transferring assets such as ownership of state oil giant Saudi Aramco. The fund will increase investments abroad. In June, it bought a stake in US ride-hailing firm Uber for $3.5 billion. But it will still focus much of its attention on local projects designed to reduce Saudi Arabia's reliance on oil exports. On Monday, the fund announced plans to buy a major stake in Adeptio, the Gulf-based investment firm which controls Kuwait Food Co (Americana). It is also set to take over a stalled financial district project in Riyadh and to buy a stake in the King Abdullah Economic City north of Jeddah.
