Public Investment Fund ( P I F )

Introduction

The Public Investment Fund (PIF) was established by Royal Decree No.(M/24), dated 25-6-1391H. The motive behind the establishment of PIF was to provide financing for certain productive projects that are of a commercial nature and are having a significant importance in developing the national economy, which the private sector lacks as the ability to under take alone, either because of insufficient experience or inadequate capital or both.

PIF's Functions

PIF's sole function is to finance investments in productive projects of a commercial nature whether they are belong to the government and its industrial lending institutions, or to public enterprises, and whether these projects are undertaken independently or in partnership between the said administrative authorities and private institutions. PIF's funding is handled through loans or guarantees, and in special cases, through allocations of public funds to specific projects.

Secretariat General

The secretariat general assumes the responsibility of receiving and verifying applications and of reviewing studies conducted by concerned parties of the proposed project in order to ensure the feasibility and profitability of the project with respect to the national economy. It also proposes allocations to be earmarked in the budget for the replenishment of PIF and approval of its financial position.
The secretariat general prepares the agenda for the board of directors, arranges the studies needed for investment projects, verifies loan applications and guarantees, initiates necessary reports, prepares the financial statement, and the final accounts and activities reports.

Lending Activities

The total amount of loans committed by PIF up to the end of fiscal year 1419/1420H. was SR.59,015, million of which SR.54,238, million was actually disbursed to finance (44) productive projects, in the Kingdom involving the following activities:

1. Local refineries.
2. Lubricant refining and processing.
3. Petroleum products storage tanks.
4. Crude oil and petroleum products distribution pipelines.
5. Export-oriented refineries.
6. Iron and steel factories.
7. Fertilizer factories.
8. Petrochemical factories.
9. Aircraft purchase for the Saudi Arabian Airlines Public Corporation (SAUDIA).
10. Pilgrims' accommodation project at Mina.

PIF's Equity Participation in Corporations

In fulfillment of the Council of Ministers' Resolution No.508, dated 2-4-1394H., PIF participated in providing the capital of a number of national corporations. By the end of fiscal year 1419/1420H., PIF's equity participation in such corporations amounted to SR.16,875 million. The number of corporations in which PIF had injected capital totaled (23) National Corporations, working in different activities such as cement manufacturing, transportation, agriculture, electricity and services. On behalf of the government, PIF also participated in the capital funding of a number of bilateral and Arab corporations. The number of these corporations in which PIF had a capital stake by the end of fiscal year 1419/1420H. totaled 31 bilateral and Arab corporations, working in different activities. PIF's total equity participation value in these corporations amounted to SR. 3,904 million.

Mailing Address:

P. O. Box # 6847
Riyadh - 11452
Saudi Arabia

Location:

Old Airport Rd. - Opposite the Ministry
of Defence and Aviation Complex
Real Estate Development Fund's Building
Riyadh, Kingdom of Saudi Arabia
Tel: +966-1-477-4488, 478-4850
Fax: +966-1-474-2693