Russian-Saudi investment fund. Saudi Arabia's sovereign wealth fund is investing $10 billion in a partnership with the Russian Direct Investment Fund. $2 billion agreements
Saudi Arabia is the world's largest oil exporter. This creates the preconditions for the creation of a sovereign wealth fund in this country. However, for a long time, Saudi Arabia has been hesitant to embrace a sovereign wealth fund as an active participant in global financial markets. The country's geographic location, economic status and population size require a significant degree of financial liquidity and a low degree of risk. For this reason, the country's investment policy differs significantly from other Gulf countries. It was only in April 2008 that Saudi Arabia announced the creation of a sovereign wealth fund. Until this time, its foreign assets were managed by the Saudi Arabian Monetary Agency (SAMA), the Central Bank of the Kingdom of Saudi Arabia.
In 2008, the agency's non-reserve foreign assets exceeded $300 billion. Reserves amounted to about 30 billion dollars. In addition to these funds, the Saudi Arabian Monetary Authority (SAMA) managed approximately $60 billion in assets, including Saudi Arabia's pension funds, on behalf of and on behalf of other agencies. These assets were placed primarily in liquid, low-risk bonds, but also included investments in stocks and high-risk bonds, making the agency a conservative investor. McKinsey estimates the fund's investments in cash and deposits at 20%, investments in fixed income financial instruments at 55-60%, investments in stocks at 20-25%, and the share of investments in US dollars - up to 85%. At the same time, there are other data according to which the share of the fund’s investments in US dollars is about 75%, in other currencies - about 25% (see Table 64).
Table 64.
Investment structure of the Saudi Arabia fund
Source: .
Saudi Arabia's SAMA Foreign Holdings fund is the third-largest fund in the world, behind the UAE and Norway, according to the Sovereign Wealth Fund Institute (SWF). Its assets are about 439 billion dollars. The main source of income is revenue from oil exports. About 65% of the fund's investments are in investments in fixed income financial instruments, about 25% are in investments in stocks, and about 10% are in investments in deposits.
According to the Sovereign Wealth Fund Institute (SWF), this fund has a low Lynaburg-Mudwell Transparency Index of 2. Saudi Arabia's SAMA Foreign Holdings fund is a fund at the country's Central Bank. The Saudi Arabian Monetary Agency (SAMA), the central bank of the Kingdom of Saudi Arabia, was established on November 4, 1952. The Central Bank of Saudi Arabia is the second oldest bank among Arab countries. It manages the Saudi Arabia fund SAMA Foreign Holdings. The Saudi Arabian Monetary Agency (SAMA) serves as the Central Bank of Saudi Arabia and also manages the government's assets and accounts. The main functions of the Saudi Arabian Monetary Agency (SAMA) are:
- managing the issue of the national currency, the Saudi rial; functioning as banker to the government;
- management of commercial banks;
- management of the country's foreign exchange reserves;
- conducting monetary policy;
- measures to ensure growth and stability of the financial system.
The governance structure of the Saudi Arabian Monetary Agency (SAMA) includes the Board of Directors, the Governor, the Vice Governor, the Legal Department, the Banking Institute, the General Investment Authority, and the Technical and Administrative Department (see Table 65).
As of June 30, 2010, the balance sheet currency of the Saudi Arabian Monetary Agency (SAMA) amounted to 589.094 million rials (as of January 14, 2011, 1 Saudi rial was equal to 8.007 Russian rubles), (see Table 127). In the structure of assets, the largest share was made up of investments in securities abroad (1144.319 million rials). In the structure of liabilities, the largest share was made up of government deposits (860.301 million rials). In the first quarter of 2010 there was an increase of 2.6% in government deposits and government agencies and institutions.
Table 65.
Governance structure of the Saudi Arabian Monetary Agency (SAMA)
Source: .
As the dynamics of changes in the exchange rate of the Saudi rial to the Russian ruble over the last 180 days as of January 15, 2011 shows, the rate of the Saudi rial fluctuated in the range from 8.3912 rubles per rial to approximately 7.9 rubles per rial (see Fig. 22 ) .
Fig.22.
Dynamics of changes in the ratio of the Saudi rial to the Russian ruble.
Source:
Revenues of the Saudi Arabian Monetary Authority (SAMA) as of June 30, 2009 according to the income statement amounted to 3.042 million rials. Among the expenses, the largest share was made by contributions from the Saudi Arabian Monetary Agency SAMA to the Public Pensions Agency (see Table 66).
Table 66.
Income Statement of the Saudi Arabian Monetary Authority (SAMA) as of June 30, 2009. (million rials)
As shown by the dynamics of changes in the financial position of the Saudi Arabian Monetary Agency (SAMA) in the period from 2005. to 2010 (first quarter), overall there was an increase in assets. The largest share of assets was occupied by investments in foreign securities, which also had increasing dynamics. Among liabilities, the largest share belonged to government deposits (see Table 67).
Table 67.
Dynamics of changes in the financial position of the Saudi Arabian Monetary Agency (SAMA), data at the end of the year, million rials
|
Liabilities |
||||||
|
Issue of banknotes |
||||||
|
Government deposits |
||||||
|
Commercial bank deposits |
||||||
|
Foreign deposits |
||||||
|
organizations in rials |
||||||
|
Other obligations |
||||||
|
Deposits in foreign |
||||||
|
Investments in foreign |
||||||
|
securities |
||||||
|
Other assets |
||||||
Source: .
In 1971 Saudi Arabia's Public Investment Fund (PIF) was created. Its goal was to contribute to the development of the national economy of Saudi Arabia. In 1974 The Public Investment Fund (PIF) has been given the authority to allocate assets to the shares of joint ventures of the national economy.
The Public Investment Fund (PIF) is managed by the Saudi Arabian Ministry of Finance. April 15, 2008 The creation of a new sovereign wealth fund for Saudi Arabia, Sanabil al-Saudia, was announced, with a planned capital of $5.3 billion (20 billion rials). Management of the fund is expected to be entrusted to an investment company wholly owned by the Public Investment Fund. The purpose of creating the fund is to diversify the country's financial assets and improve investment risk management, as well as diversify the country's economy through the development of its financial services sector. The creation of the Sanabil al-Saudia Foundation was preceded by the following events (see Table 68):
The possibility of creating a sovereign wealth fund is associated with the development of the country's economy. In 2009, the Saudi Arabian economy continued to grow despite unfavorable global conditions and the financial crisis, which resulted in a significant decline in oil prices during the year. There was also a decline in prices, including a decline in the price of oil. According to OPEC, the average price of Arabian Light oil fell by 35.2% from $94.8 per barrel in 2008 (when oil prices were at their highest) to $61.4 per barrel in 2009 (see Table 69). Average daily oil production in Saudi Arabia, according to the Ministry of Petroleum and Mineral Resources, fell from 9.2 million barrels. per day in 2008 to 8.2 million barrels. per day or by 11.3%. As a result of the decline in oil prices and production in 2009, GDP at current prices, of which the oil sector accounts for 47.7 percent, fell by 21.2 percent from 1.8 trillion rials in 2008. up to 1.4 trillion rials in 2009. At constant 1999 prices. GDP increased by 0.6 percent from 836.1 billion rials in 2008 to 841.2 billion rials in 2009. The government budget deficit amounted to 86.6 billion rials or 6.1% of 2009 GDP. In 2008 there was a surplus of 580.9 billion rials or 32.5% of 2008 GDP.
Table 68.
Establishment of the Sanabil al-Saudia Foundation
Source: .
The current account of the balance of payments recorded an increase of 85.4 billion rials or 6.1% of GDP in 2009. The M3 money supply increased by 10.7% to 1028.9 billion rials.
Table 69.
Main indicators of economic development of Saudi Arabia in 2005-2009.
|
Index |
|||||
|
Population, million people |
|||||
|
GDP at current prices, billion, rials |
|||||
|
GDP in constant 1999 prices (billion, rials) |
|||||
|
Non-oil GDP deflator |
|||||
|
Inflation rate (consumer prices) |
|||||
|
Aggregate indicator of money supply M3, billion, rials |
|||||
|
Average daily oil production, million barrels |
|||||
|
Average Arabian Light oil prices, USD |
|||||
|
Effective rial exchange rate (2000=100) |
|||||
|
Index of the ratio of currency in circulation to aggregate money supply |
|||||
|
Index of the ratio of total deposits to total money supply |
|||||
|
Net foreign assets of national banks, billion, rials |
|||||
|
Interest rates on deposits in national currency, %, for the last 3 months |
|||||
|
Bank capital adequacy index |
|||||
|
Current government revenues, billion, rials |
|||||
|
Current government expenditures, billion, rials |
|||||
|
Fiscal deficit index / income to GDP |
|||||
|
Export of goods, billion, rials |
|||||
|
Import of goods CIF, billion, rials |
|||||
|
Current account surplus to GDP index |
|||||
|
Current accounts, billion, rials |
|||||
|
Stock price index (1985=1000) |
Source: .
At the end of 2009, the overall equity index increased by 27.5 percent over the year from 4803 in 2008 to 6121.8 in 2009. Market capitalization of shares increased from 924 billion rials in 2008 to 1195.5 billion rials in 2009 According to OPEC data, the world spot price of crude oil in 2009. decreased. The average annual price of Arabian Light oil fell from $94.77 per barrel in 2008. to 61.18 dollars per barrel in 2009, the average annual price of Dubai oil fell from 93.48 dollars per barrel in 2008. to $61.65 per barrel in 2009, the average annual price of North Sea Brent oil fell from $97.01 per barrel in 2008 to $61.5 per barrel in 2009, the average annual price of North Sea Brent oil West Texas
Intermediate fell from $99.63 per barrel in 2008 to $61.66 per barrel in 2009. During the first quarter of 2010. The average price of Arab Light oil increased from $42.9 per barrel. for the same period in 2009 up to $75.75/barrel or by 76.6% (see table 70), Fig. 23.
Average annual spog prices for types of oil in 1995 - 2010. US dollars per barrel
Table 70.
|
North sea (Brent) |
||||
|
Source: .
Fig.23.Dynamics of changes in various types of oil in the period from 1995 to 2010. Source: .
Real crude oil prices declined in 2009. The average price of Arab Light oil fell by 36.4 percent from $16.31 per barrel in 2008 to $10.38 per barrel in 2009, the average price of North Sea Brent oil fell by 37.5 percent from $16.69 per barrel in 2008 to $10.43 per barrel in 2009. (see table 71). Over the past 5 years, the real price of Arab Light oil reached its highest level in 2008 ($16.31 per barrel). The lowest level was observed in 2005. and amounted to $9.31 per barrel.
Nominal and real prices for types of oil (by 1970),
dollars/barrel
The completion of the transaction will occur after receiving approval from the Federal Antimonopoly Service (FAS), RDIF said in a statement. A consortium with the participation of RDIF and Saudi Aramco and PIF made the first application for the purchase of a stake in Novomet, an appeal for clarification, back in February 2019, and the second (for approval of the transaction) - at the end of September. “The applicant was asked for additional information. The petition is under consideration,” a FAS representative told RBC. The deal is expected to be completed before the end of the year, one of RBC’s interlocutors clarified.
The sale to Saudi Aramco of a stake in Novomet is a trial balloon for the admission of investors from Saudi Arabia to the Russian market, said Maxim Khudalov, senior director of ACRA. “Relations between countries are improving, and perhaps we will still see Arab money in Russian projects,” he believes. Previously, Saudi Aramco purchased a stake in NOVATEK's second liquefied natural gas (LNG) project, Arctic LNG-2, intending to invest up to $5 billion in it, but the parties did not agree. An additional condition for the deal with Novomet shares may be the admission of this Russian company to the Saudi Arabian market, the expert thinks.
$2 billion agreements
During the Russian-Saudi forum, 30 agreements worth about $2 billion should be signed, RDIF head Kirill Dmitriev. The largest of them, in addition to purchasing a stake in Novomet:
- RDIF, the Saudi sovereign wealth fund PIF and the German financial group KGAL on the creation of a new leasing company Roal, which will supply aircraft to Russian airlines under long-term lease agreements. Investments will exceed $600 million.
- RDIF and PIF will also invest $300 million in NefteTransService (NTS), one of the largest railway operators in Russia. These investments will help expand the company's rolling stock fleet and strengthen its competitiveness in the railway sector, the Russian fund said in a statement.
- The world's largest petrochemical company Sabic, based in Saudi Arabia, together with RDIF, will invest in a methanol production plant with a capacity of up to 2 million tons per year of the ESN group of Grigory Berezkin in the Amur region. The size of Sabic's investment is not disclosed, but it was previously estimated at $700 million.
Pumps for Saudi Arabia and the Middle East
Novomet, which has two industrial sites and its headquarters in Perm, produces oil submersible equipment and provides drilling services to oil companies in Russia and abroad. According to RDIF, the company ranks sixth in the world among oil production solutions providers (3.9% of the global oilfield service equipment market).
Rusnano, together with the Baring Vostok and Russia Partners funds, invested in Novomet in 2011. During this time, the state-owned company invested 3.92 billion rubles. directly into the project, and the funds bought the shares of the founders, notes a representative of Rusnano. Now the six founders have 49.9% of the company left, while Baring Vostok and Russia Partners have less than 20%. “Over the past nine years, with the participation of Rusnano, Novomet has become one of the leaders in the Russian oilfield service equipment market and entered the top 10 of the world market. "Rusnano's investments allowed the company to modernize the Perm production of submersible pumps for oil production, increase revenue by 3.5 times, to 23.2 billion rubles, expand the international equipment supply network to 25 countries and open 12 service centers for equipment maintenance around the world." ,” Anatoly Chubais, Chairman of the Management Board of Rusnano Management Company, reported (his words are given in the message).
Chubais expects that the arrival of a strategic investor in Novomet in the person of one of the world's largest oil producing companies, Saudi Aramco, will strengthen the high status of the Russian company in the international oilfield services market and give new impetus to its development. RDIF, in partnership with Saudi Aramco and PIF, intends to significantly expand Novomet’s business in Saudi Arabia and other key markets in the Middle East, Dmitriev confirmed. According to him, Novomet will be able to expand its portfolio of orders for the production and maintenance of equipment, and will also have the opportunity for further development and the creation of an updated product line.”
This is not the first attempt to attract a strategic investor to Novomet. Previously, the American oilfield services company Halliburton was going to buy 100% of the company, but at the beginning of 2018 it withdrew its application from the FAS. Then the head of the service, Igor Artemyev, suggested that Halliburton was waiting for the next sanctions against Russia and the Americans “simply feel in this situation that they themselves no longer need anything.” “If we compare it with the deal with Halliburton, which acted as a strategic investor with a premium for 100% of Novomet, the consortium with the participation of Saudi Aramco and RDIF acts more like a financial investor,” a source close to one of the parties to the deal told RBC. However, even having agreed on the sale to this consortium, the Rusnano company could earn more than 3.5 billion rubles from this investment.
“Baring Vostok does not plan to participate in a deal with Saudi Aramco and RDIF, but is considering the possibility of selling its stake in the company and is negotiating with potential buyers,” a representative of the investment fund told RBC.
Novomet has been growing well in recent years and has had access to international markets (40% of revenue is exported), so Saudi Aramco’s interest in the company is understandable, notes Khudalov. According to him, taking into account the growth of the order portfolio, the return on investment for new shareholders could be up to three years. Novomet receives about half of its revenue abroad, mainly from North and South America, confirms Danila Shaposhnikov, a partner at the investment company TerraVC. Entering a new region (the Middle East) is logically integrated into Novomet’s development strategy: the company is actively diversifying its business and launching new high-tech oilfield services production and services.
“Bilateral cooperation between Russia and Saudi Arabia in the trade and economic sphere has reached an unprecedented level. In recent years, a comprehensive breakthrough has been made in relations,” said Alexander Novak, Minister of Energy of the Russian Federation and co-chairman of the Russian-Saudi intergovernmental commission on trade, economic, scientific and technical cooperation, on the sidelines of the Russian-Saudi investment forum in Riyadh. The forum, organized by the Russian Direct Investment Fund (RDIF) and the Saudi Arabian state investment agency Sagia, is timed to coincide with the state visit of Russian President Vladimir Putin to the kingdom.
On Monday in Riyadh, in the presence of Russian President Vladimir Putin and King Salman bin Abdulaziz, Russia and Saudi Arabia signed 21 documents regarding the development of bilateral relations. About 20 more documents were signed before Mr. Putin's plane landed in Riyadh. Meeting the Russian President in his palace, King Salman highly appreciated the prepared bilateral documents, noting investment cooperation between the two countries. “We welcome the investments of RDIF and PIF (Saudi Sovereign Fund.- “Kommersant”) in more than 30 projects and emphasize the important role of the first meeting of the Russian-Saudi Committee, which will take place during your visit,” he said.
OPEC+: the main thing is balance
Partnership within the framework of the OPEC+ deal occupies a special place in Russian-Saudi relations. A Charter for long-term cooperation between OPEC countries and countries outside the cartel was prepared for President Putin’s visit to Riyadh. The document was initialed at a ministerial meeting in Vienna this summer, but the ceremonial signing was postponed until Vladimir Putin met with King Salman. “This is not only about interaction in terms of adjustments in order to balance the market, it is a much broader interaction, based primarily on the development of our joint cooperation in this area and in a bilateral and multilateral format,” said Alexander Novak. He explained that no country will have a leading role in this agreement. The Russian minister also assured that the countries participating in the OPEC+ deal are not discussing the revision of the terms of the agreement.
Let us recall that on the eve of his visit to Riyadh, Vladimir Putin said in an interview with Arab television channels that oil reserves need to be reduced to a reasonable limit so that they do not put pressure on its prices.
“I think that the president was referring to the successful experience that OPEC+ has in balancing the market and taking certain actions in this regard when necessary,” Alexander Novak explained to reporters.
The words of the Russian president were also commented on by the Saudi Minister of Energy, Prince Abdulaziz bin Salman. “I really, really liked the words of President Putin. He understands that we must take whatever action we can to prevent disasters in this market. Typically, inventories are high in the first quarter. I think we need to do more work to make sure that inventories return to normal levels. But I would not want to prejudge the decision of our meeting (OPEC+.- “Kommersant”) in December,” he said.
Strategic vision
Prince Abdulaziz was only recently appointed as the kingdom's energy minister. At the same time, he received the post of co-chairman of the Russian-Saudi intergovernmental commission on trade, economic, scientific and technical cooperation. In this capacity, he especially noted that contacts are developing not only at the state level, but also at the level of private business. Answering questions from journalists, he did not rule out that in the future we will talk not only about Saudi investments in Russia and the work of Russian companies in the kingdom, but also about joint investments of the two countries in projects “not only in the region, but throughout the world.” . He especially noted the role of the sovereign funds of two countries - the Saudi PIF and the Russian RDIF. “They will make a lot of investments, implement many joint projects. But I think the main thing we saw today is that investment will come from different directions. And this is good,” the minister emphasized.
For his part, speaking about the documents signed during the visit, Alexander Novak, in addition to the charter, especially emphasized:
- high-level Russian-Saudi strategic cooperation program of the joint IGC(according to the minister, it is based on the national development priorities of Russia until 2024 and the Saudi Vision-2030 development concept of the kingdom);
- protocol between the ministries of energy of the two countries(“the road map” for energy cooperation includes 24 initiatives in the oil and gas sector, nuclear energy and other related areas, noted Alexander Novak);
- agreement between governments for the mutual establishment of trade missions(as the minister emphasized, last year trade turnover between the countries increased by 15% and for the first time in several years exceeded $1 billion; in eight months of this year, trade turnover has already grown by 38% - but at the same time, the minister believes that the potential for trade cooperation is much greater ).
For its part, RDIF paid special attention to the agreement signed in the presence of the President and the King on the entry of the consortium of Saudi Aramco, PIF and RDIF into the share capital of the oil production equipment manufacturer Novomet. This is the first joint investment by RDIF and Saudi Aramco within the framework of the energy platform created in 2017 with the participation of PIF, aimed at investing in companies in the energy sector of the Russian Federation with the possibility of subsequent localization of the business.
At the palace, a cooperation agreement was also signed between the largest petrochemical company SABIC, RDIF and Unified Social Fund for the construction and operation of a methanol production plant with a capacity of up to 2 million tons per year in the Amur region in Russia.
Previously, at the investment forum, Saudi Aramco signed about a dozen memorandums of understanding with Russian companies. Among them are Gazprom Neft, Pipe Metallurgical Company, Galen Company, Chelyabinsk Pipe Rolling Plant, Angara Service, Intratool Group of Companies, Technovek and Integra companies.
- RDIF, Russian Railways and Saudi Railway Company(SAR) agreed to explore opportunities for cooperation in the field of transport infrastructure construction. The agreement aims to jointly expand the SAR rail network.
- RDIF and Saudi Technological Development and Investment Company(TAQNIA) agreed on cooperation to develop the commercial use of the Russian-made rocket and space complex Start-1. In addition, the agreement provides for the implementation of joint research and production activities for the design and production of additional components of the launch vehicle, which should increase its quality characteristics and commercial demand.
- RDIF, the Moscow Institute of Physics and Technology (MIPT) and the National Center for Big Data and Artificial Intelligence at the King Abdulaziz Center for Science and Technology of the Kingdom of Saudi Arabia have agreed to jointly develop the high-tech field of artificial intelligence.
During the investment forum, RDIF head Kirill Dmitriev also mentioned the plans of Russian companies to build factories in Saudi Arabia, in particular for the production of insulin and other medicines.
Other businessmen also spoke about their projects. Thus, the main owner of AFK Sistema and chairman of the Russian-Arab Business Council, Vladimir Yevtushenkov, mentioned plans for cooperation with the kingdom in the agricultural sector, in the field of high technology and infrastructure.
“We believe that the investment climate in Saudi Arabia today has changed significantly and has become more comfortable for any foreign investors, including from Russia,” he emphasized, speaking at the forum.
Moscow. July 7. website - The Russian Direct Investment Fund and the Saudi Arabian sovereign wealth fund Public Investment Fund (PIF) are creating a partnership within which PIF will invest $10 billion primarily in projects in the Russian Federation, RDIF reported.
This is the largest commitment by a foreign investor in the history of the RDIF (the previous “record” was set by an agreement with the UAE sovereign fund - for $7 billion), and one of the largest partnerships of this kind in the world, RDIF head Kirill Dmitriev told Interfax.
The priority sectors for partnership will be infrastructure, agriculture, medicine, logistics, retail, and real estate.
RDIF is planning about ten projects, with potential investments of $1 billion in each. The fund is going to carefully analyze possible investment objects. Dmitriev clarified that $10 billion will be invested not in a month, but in 4-5 years.
According to him, seven projects have already received preliminary approval; in total, about ten transactions may take place before the end of the year within the framework of the partnership with PIF. In this case, various mechanisms will be used that have already been tested within the framework of the Russian-Chinese investment fund and other joint RDIF platforms, including the automatic co-investment mechanism. RDIF has not yet commented on the question of whether public companies will be among the investment targets of the partnership with PIF.
As part of the partnership with PIF, the possibility of investing in third countries is not excluded.
RDIF also entered into a partnership with another sovereign fund of Saudi Arabia - the Saudi Arabian General Investment Authority (SAGIA). The parties will jointly search for investment projects in the Russian Federation. SAGIA is also responsible for attracting investments to Saudi Arabia; the fund’s cooperation with RDIF will help Russian companies enter the market of the Arab state, Dmitriev noted.
The successor to the Crown Prince of Saudi Arabia, Muhammad bin Salman, in June in St. Petersburg, and also participated in the meeting of the President of the Russian Federation with members of the RDIF international expert council as part of the SPIEF on June 18. “Of course, the meeting with the president greatly contributed to the decision to create a partnership,” said K. Dmitriev.
RDIF already has a number of partnerships with sovereign funds of Arab oil exporting countries (UAE, Kuwait, Qatar, Bahrain).
Press release, 10/05/2017
Moscow, October 5, 2017- The Russian Direct Investment Fund (RDIF) and the Public Investment Fund (PIF) from Saudi Arabia announce the creation of a Russian-Saudi platform for investments in the technology sector.
The new structure will focus on finding attractive investment opportunities in the Russian high-tech sector, including companies from the field of e-commerce, digital infrastructure, big data, etc.
The volume of the Russian-Saudi platform for investments in the technology sector will be $1 billion.
RDIF and PIF are also considering a number of attractive investment opportunities in sectors such as retail, construction, alternative energy, transport and logistics infrastructure.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), noted:
“We and our Saudi partners believe in the potential of Russian high-tech companies and consider this sector key for the further development of the economies of both countries. That is why we decided to highlight the search for attractive opportunities in the technology sector as a separate area of work for RDIF and PIF. The created platform will allow us to make maximum use of the investment potential and expertise of our teams to create and implement advanced technological solutions not only in Russia and Saudi Arabia, but also on the global market.”
Russian Direct Investment Fund (RDIF)- sovereign investment fund of the Russian Federation, founded in June 2011 with the aim of making investments in equity capital mainly in Russia together with leading foreign financial and strategic investors. The fund acts as a catalyst for direct investment in the Russian economy. The Fund's management company is located in Moscow.
Russian-Saudi Investment Fund was created by the Russian Direct Investment Fund (RDIF) and the Public Investment Fund (PIF) for investment in attractive projects mainly in Russia, contributing to the strengthening of trade, economic and investment cooperation between the Russian Federation and KSA. Priority sectors for investment include: food production and agriculture, consumer and service sectors, healthcare and pharmaceuticals, innovation and high technology, infrastructure. www.rsifund.com
Public Investment Fund- In March 2015, the Council of Ministers issued a decree transferring oversight of the PIF to the Council for Economic and Development Affairs (CEDA). As part of this process, a new PIF Board of Directors was appointed, chaired by His Royal Highness Crown Prince Mohammad bin Salman Al Saud.
To help achieve the goals set under Saudi Vision 2030, the PIF Board of Directors has adapted the fund's strategy in line with the program.
PIF develops a portfolio of high-quality domestic and international assets, diversified across sectors, geographies and classes. Together with global strategic partners and renowned investment managers, PIF acts as the Kingdom's primary investment arm to implement a strategy aimed at generating attractive returns for the Kingdom of Saudi Arabia over the long term.
PIF aims to become a global investment hub and the world's most influential investor, enabling the creation of new sectors and investment opportunities that will shape the future global economy and drive Saudi Arabia's economic transformation. More information can be found at.