Saudi PIF ranks first among 100 wealth funds in Middle East
RIYADH: The Saudi Public Investment Fund (PIF) ranked seventh globally and first in the Middle East among 100 sovereign wealth funds according to Global SWFs Governance, Sustainability and Resilience (GSR) rating.
The 44-page report by the international organization discussed the Fund’s sustainability in a special section, “Champions in Sustainability: The Public Investment Fund.” In November 2022, the PIF became the first SWF in the Middle East and one of the first globally to announce aims to achieve net-zero emissions by 2050.
“But this was nothing really new, as PIF had been working on sustainable initiatives since 2017.” The report pointed out that two examples can illustrate the efforts of the Fund on future sustainability trends. The first one is electric vehicles (EV), one of the main targets for decarbonization and economic diversification. PIF invested over $ 1 billion in Lucid Motors, and the company last year announced it is building a factory in the Kingdom. Lucid is listed on Nasdaq, and PIF’s 61 percent stake is valued at $8 billion.
In addition, the SWF announced in November 2022 the launch of Saudi Arabia’s first electric vehicle brand, Ceer, in a joint venture with and based Hon Hai Precision Industry Company (Foxconn). The first Ceer models are scheduled to roll off the production line in 2025, and the brand is projected to contribute $8 billion to Saudi GDP by 2034, creating 30,000 jobs. In 2022, the Crown Prince, Prime Minister, and Chairman of the Board of Directors of PIF, Prince Mohammed bin Salman, launched Ceer, the first Saudi brand to manufacture e-vehicles in the Kingdom, in line with the Fund’s strategy.
It focuses on launching and boosting promising sectors to diversify the sources of the Saudi economy, following Vision 2030, and in line with the Kingdom’s goals in reducing carbon emissions and preserving the environment. Additionally, PIF is mandated to develop 70 percent of Saudi Arabia’s renewable energy capacity by 2030, and an example of the significant progress that is being made towards this is the investment of over $6 billion by PIF and its partners in five solar power projects, with a cumulative capacity of approximately 8 gigawatts.
These investments will support Saudi Arabia’s target of a 50 percent renewable energy mix by 2030. The Head of Strategy Development and Innovation at PIF, Chad Richard, said the report reinforces the Fund’s status as one of the world’s leading impactful and responsible investors, with world-class governance and sustainable practices. PIF has led the way in supporting the clean energy transition globally.
He pointed out that the Fund organized the largest voluntary carbon credit auctions, with 3.6 million credits sold to several local and international entities and companies. Richard added that the Fund is the first sovereign wealth fund to issue green bonds, including the first-ever century green bonds, with a combined value of $8.5 billion, and the first Fund in the region to commit to targeting net zero by 2050. – Agencies.
