RIYADH: Saudi Arabia’s Public Investment Fund is increasingly relying on the private sector to drive value across its portfolio, a senior executive said, as the sovereign fund expands operational partnerships.
The fourth edition of PIF’s Private Sector Forum concluded on Feb. 10, bringing together executives from the local and global private sector across strategic industries, alongside 121 companies from the fund’s portfolio.
PIF’s Head of MENA Direct Investments Raid Ismail spoke to Arab News about the Operational Value Creation Group, digitization in the private sector, and the government’s role in partnering with businesses.
He said: “If you look at PIF from one side, it’s a private equity firm. If you look at it from another side, it's a national economic development arm. You look at it from another side, it’s an asset manager, but in our essence, we are a sovereign wealth fund.”
He explained that achieving returns requires going deep into portfolio companies and enhancing operations beyond initial business plans. “The only way you can really get the returns you want is by going deep into the company and exceeding the business plan that they had by operational enhancement. So that’s the premise of it.”
