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Saudi Arabia's sovereign wealth fund aims to expand assets to $400B by 2020


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Saudi Arabia's sovereign wealth fund aims to expand assets to $400B by 2020

Saudi Arabia's sovereign wealth fund is considering the establishment of more offices abroad as its seeks to expand its assets under management to $400 billion by 2020 through overseas and domestic investments, the Financial Times reported March 27.

The Public Investment Fund of Saudi Arabia, or PIF, is considering setting up offices in New York and San Francisco in the U.S., the U.K. and Japan, Managing Director Yasir al-Rumayyan told the FT.

"We don't want to invest just in the current things. we want to enable new industries," said Al-Rumayyan, adding that the focus for Saudi Arabia is on robotics and artificial intelligence. The PIF recently agreed to invest $400 million in Magic Leap, which develops "mixed reality" headsets, the FT said.

Al-Rumayyan said PIF's major investments are in companies with "outstanding growth rates" as PIF puts a premium on financial returns.

Some of these investments include a $3.5-billion stake in ride-hailing company Uber in 2016. PIF also agreed to funnel $45 billion into a technology fund with Japan's Softbank and contributed half of the $40-billion infrastructure fund managed by private equity firm Blackstone.

PIF currently has more than $250 billion assets under management and aims to raise funds from the proceeds of privatizing state assets, including the planned IPO of state-owned Saudi Arabian Oil Co. Saudi officials are in New York as part of a U.S. tour with Saudi Crown Prince Mohammed bin Salman to drum up investment for the kingdom, the FT said.