Saudi Arabia’s investment fund has been set an impossible task
It must earn eye-watering returns while speeding the shift to a post-oil economy
About a decade ago, a flashy, deep-pocketed investor made an appearance. Saudi Arabia’s Public Investment Fund (PIF) had a mandate to go big, and was ready to: it picked up a $3.5bn stake in Uber, placed $45bn in the world’s largest technology-investment fund, SoftBank’s Vision Fund, and provided half the capital for a $40bn infrastructure fund run by Blackstone, a private-equity giant. It has since bought stakes in everything from Heathrow Airport and Nintendo to Hollywood studios and French hotels. Last year it deployed more than $30bn of fresh capital, making it the highest-spending wealth fund in the world (see chart).
Explore more
This article appeared in the Finance & economics section of the print edition under the headline "Princely demands"
Finance & economics March 16th 2024
- Is the bull market about to turn into a bubble?
- China’s economic bright spots provide a warning
- China is churning out solar panels—and upsetting sand markets
- Saudi Arabia’s investment fund has been set an impossible task
- The private-equity industry has a cash problem
- Russia’s economy once again defies the doomsayers
- How NIMBYs increase carbon emissions
More from Finance and economics
What campus protesters get wrong about divestment
Will withdrawing money hurt Israel?
Hedge funds make billions as India’s options market goes ballistic
The country’s retail investors are doing less well
Russia’s gas business will never recover from the war in Ukraine
Hopes of a Chinese rescue look increasingly vain