Saudi Arabia to Focus Sovereign Wealth Fund Efforts at Home Amidst Global Summit Discussions

Saudi Arabia plans to cut overseas sovereign wealth fund investments to focus on domestic economic growth. At the Future Investment Initiative summit, leaders discussed economic transformation amidst Middle East tensions. The fund aims for sustainable revenue in new sectors but scales back some projects due to rising costs.


Devdiscourse News Desk | Updated: 29-10-2024 20:35 IST | Created: 29-10-2024 20:35 IST
Saudi Arabia to Focus Sovereign Wealth Fund Efforts at Home Amidst Global Summit Discussions
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Saudi Arabia's sovereign wealth fund is planning to reduce its overseas investments by approximately one-third, a move announced by the fund's governor at a Riyadh conference. The decision reflects a strategic shift toward supporting domestic economic growth and reducing the fund's international investment share to 18%-20% from the current 30%.

The announcement came during the Future Investment Initiative (FII) summit, which attracted global business, technology, and financial leaders to Riyadh. As the Kingdom seeks to diversify its economy away from oil dependency, the sovereign wealth fund is critical in driving investments into new sectors. However, the fund is scaling back on some ambitious 'giga-projects' due to increased costs.

Speakers at the event also addressed the potential impacts of geopolitical tensions in the Middle East on investor confidence. Crown Prince Mohammed bin Salman's diversification plans, articulated by leading participants, emphasize forming joint ventures and co-investments to ensure sustainable economic transformation.

(With inputs from agencies.)

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