The local content growth program focuses on achieving the Public Investment Fund’s goals of increasing the share of its contribution to the country’s economy by improving PIFs and the associated companies’ contribution to the local content to 60% by the end of the year 2025.
The Public Investment Fund on Thursday announced the launch of Local Content Growth to support and enhance the local private sector products and services. The program aims to influence the Public Investment Fund’s spending to bring development to the competitive, innovative, and at-scale industries in Saudi Arabia. The Local Content Growth program includes a Local Content Policy that will support and encourage local products and services, walking through various stages, from its product design stage to its implementation by companies in PIF’s portfolio in which the top priority is given to producers, manufactures, and organizations in the private sector in accordance with the size of their contribution to local content.
This will assist in the progression of local industries by increasing their competitiveness, shaping confidence, and driving innovation in designs and local materials. The program focuses on achieving the Public Investment Fund’s goals of increasing the share of its contribution to the country’s economy by improving PIFs and the associated companies’ contribution to the local content to 60% by the end of the year 2025. This will promote and strengthen Saudi’s private sector on par with Saudi Arabia’s Vision 2030.
The Head of the National Development Division at PIF, Jerry Todd states that the Local Content Growth program improves the Public Investment Funds’ position as an important element in enabling the private sector and providing a more flexible domestic economy in the Kingdom of Saudi Arabia. “This move will help build local capabilities, create opportunities for private sector players across the value chain, and build on Saudi Arabia’s position at the regional and global level in line with Vision 2030″, says Jerry Todd. The sixth edition of the Future Investment Initiative (FII) provides the announcement regarding the details.
The National Development Vision was created to aid PIF’s contribution to the local economy by laying out the tactical directions regarding social and economic development by PIF along with the evaluation of its strategies, investments, and effect on the economy.
PIF is developing a diversified portfolio by getting into long-term investment opportunities in various strategic sectors in and around the Kingdom of Saudi Arabia and many parts of the world. The Fund aims to enable many promising sectors and promote local content with the help of creating partnerships with the private sector and investing a minimum of 150 billion Riyals annually into the local economy.
Being the ‘investment arm’ of Saudi Arabia, Public Investment Fund mainly aims to build strategic relationships and make tactful investments with well-known and established organizations that in return produce long-term value for the country and be in line with the goals of Vision 2030.
PIF’s portfolio companies awarded SAR140 billion worth of contracts to the local private sector companies in the year 2021, and around 60% of it went to the construction materials and services, telecommunications and information technologies, and financial services sectors. This initiative lies with the PIF’s strategic objective of building partnerships and enabling the private sector to boost Saudi Arabia’s GDP and create jobs in strategic sectors.
PIF has also created operational governance models that mirror its aim and objectives that fall in line with the best international practices. This model of governance enhances the level of transparency and efficiency in decision-making and future developments.
PIF has launched several initiatives to grow competitive and innovative industries in Saudi Arabia, that concentrate on its 13 strategic sectors. This becomes beneficial as it builds investment opportunities for local players, creates high-value jobs, stimulates the local private sector, and strengthens supply chains.