Role of Saudi Arabia Public Investment Fund in Achieving the Saudi Vision 2030

Posted: August 26th, 2021

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Role of Saudi Arabia Public Investment Fund in Achieving the Saudi Vision 2030

Saudi Vision 2030 refers to a strategic framework established on 25th April 2016 to moderate the nation’s over-dependence on oil trade, develop sectors in public service, and diversify the economy. The primary objectives of Saudi vision 2030 are reinforcing investment and economic activities, promote a secular image of the Kingdom, and increase international trade on non-oil products. Besides, the goals target to increase the government’s spending on manufacturing equipment, military, and ammunition. Therefore, the implementation of the vision would achieve a vibrant society, a thriving economy, and an ambitious nation in line with the stipulated objectives.

Public investment fund (PIF) is a sovereign wealth fund in the country and among the Vision Realization Programs (VRPs) launched on 24th April 2017set to achieve the Saudi vision by 2030. PIF has an asset base of approximately $382 billion. Its primary purpose is to invest funds on behalf of the Saudi Arabia government in specific projects by loans, guarantees, equity, and public funds allocation. The four fundamental objectives of PIF are in line with the Saudi vision 2030 and include growing PIF assets that help to grow and diversify the economy. Also, unlock new sectors such as industrial and manufacturing, waste management, and entertainment. This is achieved by creating new companies, embracing unique ecosystems, and developing large-scale real estate and infrastructure projects. Equally, it builds strategic economic partnerships in local and international markets. Also, the focus is to localize the cutting-edge technology and knowledge for purposes of encouraging local companies to conduct research and develop product innovation. Consequently, the PIF achieves its objectives by providing medium-term and long-term investment loans to private industrial projects and the government as well. Besides, it invests in holdings, development, real estate and development of infrastructure, international strategic investments, Giga-projects, and a global diversified financial pool.

Question 2

What Makes Tesla, Amazon, and Indetex Special

Tesla, Amazon, and Inditex are multinational companies, global leaders, and world movers in different countries and various industries. These companies are unique as they are at the center of transforming global technological advances that are key to the achievement of Vision 2025, particularly in Saudi Arabia. Tesla, Inc. is an alternative energy and electric vehicle, an American company whose headquarters are in Palo Alto, California. The corporation specializes in the manufacturing of the electric vehicle, battery energy storage, and solar energy. The company is listed in NASDAQ exchange and has total equity of $6.618 billion and total assets valued at $34.309 billion as of 2019. Inditex is a Spanish multinational Clothing Corporation that is based in Arteixo, Galicia. The company is ranked as the world’s biggest fashion group with over 93 markets and 7,200 stores worldwide. The company is listed in BME: ITX with total revenue of €19.820billion as of 2019. Besides, the company has several subsidiaries such as Pull & Bear, Zara, Bershka, Stradivarius, Oysho, Massimo Dutti Zara Home, and Uterqüe. Finally, Amazon is a multinational technology company headquartered in Seattle, Washington. The company is among the top technology companies that focus on e-commerce, digital streaming, cloud computing, and artificial intelligence. The corporation is listed in NASDAQ exchange with revenue of $87.4 billion as of 2019. Therefore, the three companies adopt innovative technology, product differentiation, and are a high performer in their respective industries.

Investment Course

An investment course entails studying various areas such as investment and portfolio management, financial management, financial markets, and corporate finance, among others. The learner’s expectations include financial modeling, use of valuation methods, analyze and make investment decisions. Financial modeling involves building an abstract representation of the actual world matters finance using mathematical models. The leaner should also be able to apply various valuation methods of investment, such as discounted cash flow analysis, precedent transactions, and comparable company analysis at the end of the course. Hence, the learner will manage and make investment decisions through the application of relevant models to qualify the desired investment options.