Several years from now, an American executive who flew to Saudi Arabia could get off the airlines established by sovereign wealth funds and ordered Uber, a company where the same funds have 4% shares. Taken across the capital, the executive might examine the boutique hotel in a used palace, which is also owned by public investment funds.
Attending the PIF Annual Conference, they can take a sip of coffee planted through a business led by the funds, then sign an agreement with a defense company owned by PIF. That night, the executive might watch dinner and movies in a complex developed by his entertainment arm, flying home without touching a single business that is not related to PIF.
As the crown prince Mohammed bin Salman competed to diversify the economy that depends on Saudi Arabian oil, PIF $ 620 billion – which he seats – is the center of attention, replacing the pedigreed business class to become one of the most powerful institutions in the economy that changes rapidly.
Receding is a conservative Islamic empire from a long time, which lives from its oil income while investing carefully in a safe US treasury and disbursing profitable state contracts. This is Saudi Inc. And its own -style founder tore up the rules.
Within five years, PIF became the main international investor, taking US blue chips like Uber and investing in electric cars. It was also made into sports, buying a Newcastle United English soccer team and investing $ 200 million in an international golf business.
It was given by MBS, as the author of De facto was known, more influence on the international stage, with Western officials who sought the largest oil exporting in the world to help experience inflation and pour petrodollars into the stuttered world economy. US President Joe Biden will visit Riyadh in mid -July, forced to rethink his promise to turn SBM into “Paria” for the 2018 Washington Post Columnist Murder Jamal Khashoggi.
But at home that PIF made the biggest impact, changing the economy with the brand of state capitalism. PIF aims to invest at least $ 40 billion per year in Saudi Arabia and have created 54 new companies, branching into sectors from real estate to luxury cruise ships.
Critics say it is part of the extensive accumulation of power that Prince Mohammed, 36, controls oil policies, security, domestic and foreign affairs, critics who are imprisoned and silenced independent sounds. The Saudi executive also raised concerns, initially said they felt crowded by the entity that was so rich and connected a little that could compete.
“SBM is not too concerned with the structure of the Saudi Arabia or Saudi business and wants to build new Saudi Arabia,” said Steffen Hertog, a professor at the London School of Economics. “He was completely renewed (it was PIF) and turned it into the main vehicle for diversification strategies, passing most well -established and more clearly, well -established government.”
Founded in 1971 as part of the Ministry of Finance, PIF was initially charged with providing loans to develop the economy and have a significant percentage of the Saudi stock market but is slightly known abroad.
Then, in March 2015, the funds were “born again,” the website stated, and was placed under MBS.
In the midst of thousands of princes who filled his rapiten world, MBS saw himself as a nuisance. It was only 29 years old when his father became king, he looked at technology entrepreneurs such as Steve Jobs and Mark Zuckerberg as role models, he said to Bloomberg in 2016. “If I work according to their method, what will I make?”
When the prince began to expand his authority with enthusiasm, PIF became the main tool, giving him the opportunity to run a newer Saudi Arabia more like a technology startup than a slow moving bureaucracy.
He recruited Yasir al-Rumayyan, a Saudi banker, as governor. A year later, when he launched his vision 2030 to overhaul the Saudi economy and ended his dependence on oil, PIF was at the forefront. MBS said that he would have assets worth more than $ 2 trillion in 2030, making it the largest country’s wealth funds in the world.
Since 2017 – When MBS got rid of older cousins to become the heir to the throne – PIF has doubled, in part because of the transfer from the central bank and the IPO of Stock in State Oil Aramco.
In the process, increasingly overshadowing used electrical centers such as the Ministry of Finance, the Ministry of Economy and the central bank to become the country’s main growth machine.
The expansion has ruffled feathers between the business elite.
Saudi Arabia has been a monarchy since its establishment, but power is more decentralized a decade ago and traders are important to enjoy their own influence.
The old business class suffered a devastating blow in 2017, when Prince Mohammed held a controversial anti-corruption campaign, holding back noise, businessmen and former officials at the Ritz-Carlton Riyadh Hotel. Most are accused of carrying out unwanted transactions, pressed to submit assets, released and prohibited from traveling abroad.
Prince Alwaleed bin Talal, who was long counted among the richest people in the world, was expelled from the list of billionaires forbes
In five years, PIF became the main international investor, taking blue chips like Uber and investing in electric cars. It was also made into a sport, buying a Newcastle United English soccer team and investing $ 200 million in the international golf business.
It was given by MBS, because the writer de facto was known, more influence on the international stage, with western officials who sought the largest oil exports in the world to help experience inflation and pour petrodollars into the stuttered world economy. US President Joe Biden will visit Riyadh in mid -July, forced to rethink his promise to turn SBM into “Paria” for the 2018 Washington Post columnist, the murder of Jamal Khashoggi.
But in that home PIF made the biggest impact, changing the economy with the brand of state capitalism. PIF aims to invest at least $ 40 billion per year in Saudi Arabia and have created 54 new companies, branching into the sector of real estate to luxury cruise ships.
Critics say it is part of the extensive accumulation of power that Prince Mohammed, 36, controls oil policies, security, domestic and foreign affairs, critics who are imprisoned and silenced independent voices. The Saudi executive also raised concerns, initially said they felt crowded with such rich and connected entities that could compete.
“SBM is not too concerned with the structure of Saudi Arabia or Saudi business and wants to build new Saudi Arabia,” said Steffen Hertog, a professor at the London School of Economics. “He was really renewed (that was PIF) and turned it into the main vehicle for diversification strategies, passing the most obvious and clearer government, which was well built.”
Founded in 1971 as part of the Ministry of Finance, PIF was initially charged with providing loans to develop the economy and have a significant percentage of the Saudi stock market but is slightly known abroad.
Then, in March 2015, the funds were “born again,” the website stated, and was placed under MBS.
In the midst of thousands of princes who filled his rapit world, MBS saw himself as a disturbance. It was only 29 years old when his father became king, he saw technology entrepreneurs such as Steve Jobs and Mark Zuckerberg as role models, he said to Bloomberg in 2016. “If I work according to their method, what will I make?”
When the prince began to expand his authority with enthusiasm, PIF became the main tool, giving him the opportunity to run a newer Saudi Arabia more like a technology startup than a slow moving bureaucracy.
He recruited Yasir al-Rumayyan, a Saudi banker, as governor. A year later, when he launched his vision 2030 to overhaul the Saudi economy and ended his dependence on oil, PIF was at the forefront. MBS said that he would have assets worth more than $ 2 trillion in 2030, making it the largest country’s wealth funds in the world.
Since 2017 – When MBS has been eliminating older cousins to become the heir to the throne – PIF has multiplied, in part because of the transfer of the central bank and the stock of stock in the State Oil Aramco.
In the process, which increasingly overshadowing electric centers using electricity centers such as the Ministry of Finance, the Ministry of Economy and the Central Bank to become the main growth machine of the country.
Expansion has ruffled the feathers between the business elite.
Saudi Arabia has been a monarchy since it was founded, but power was more decentralized a decade ago and traders were important to enjoy their own influence.
The old business class suffered a devastating blow in 2017, when Prince Mohammed held a controversial anti-corruption campaign, withdrawing noise, businessman and former officials at the Ritz-Carlton Riyadh Hotel. Most are accused of carrying out unwanted transactions, pressed to submit assets, released and prohibited from traveling abroad.
Prince Alwaleed bin Talal, who has long been counted among the richest people in the world, was expelled from the list of billionaires forbes
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