The Public Investment Fund (PIF) was established by Royal Decree No. M/24, dated 25-06-1391H corresponding to 17-08-1971. The purpose of establishing PIF was to provide financing support to productive projects which are of a commercial nature and are strategically significant for the development of the national economy and cannot be implemented by the private sector alone either because of insufficient experience or inadequate capital resources or both.
PIF’s primary function is to finance investments in productive projects having a commercial character whether belonging to the government in total or in partial 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 sector entities. PIF’s funding is handled through loans or guarantees, and in special cases, through allocations of public funds to specific projects; all in accordance with the terms and modalities determined by its Board of Directors.
A number of important economic sectors in the KSA have availed the PIF funding such as petroleum refineries, basic petrochemical industries, pipelines and storages, transportation including maritime, airline, strategic projects owned by the private sectors, the energy sector and water desalination, mineral sectors and its infrastructural facilities such as rail road connection, etc. Pursuant to a Council of Ministers’ subsequent resolution No. 508 dated 02-04-1394H corresponding to 02-05-1974, PIF was assigned an explicit role in investing and holding equity participations on behalf of the government in certain joint stock companies and in administering such participations on its behalf and representing it in respect thereof.
The General Secretariat
The general secretariat assumes the responsibility of receiving and verifying applications and of reviewing and appraising studies conducted by concerned parties of the proposed projects in order to ensure the feasibility and profitability of the projects with respect to the national economy. It also proposes allocations to be earmarked in the budget for the replenishment of PIF resources and approval of its financial position.
The general secretariat 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.
The total amount of loans committed by PIF up to the end of fiscal year 2011 was SR 120, 224 million, in the Kingdom involving the following activities:
Lubricant refining and processing.
Petroleum products storage tanks.
Crude oil and petroleum products distribution pipelines.
Iron and steel factories.
Aircraft purchase for the Saudi Arabian Airlines Corporation (SAUDIA)
Pilgrims’ accommodation project at Mina.
Water and electricity projects.
Rail road projects.
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 2011, PIF’s equity participation in such corporations amounted to SR 63, 249 million. The number of corporations in which PIF had injected capital totaled (41) National Corporations, working in different sectors such as cement, transportation, agriculture and fisheries, electricity and water, insurance, petrochemicals, real estate and hotels sector, etc.
On behalf of the government, PIF has also participated in the capital funding of a number of bilateral and Pan Arab corporations. The number of these corporations in which PIF had a capital stake by the end of fiscal year 2011 totaled 27 bilateral and Pan Arab corporations, working in different activities. PIF’s total equity participation value in these corporations amounted to SR 14, 867 million.
Establishment of New Companies
PIF has so far established the following fully owned companies:
1. The Saudi Rail Road Company (SAR).
2. The National Company for Unified Procurement of Medicine.
3. Al-elm Information and Data Security Company.
4. The Security Exchange Company (Tadawl).
5. The Saudi Company for the Exchange of Electronic Data (Tabadl).
6. The Education Development Holding Company (Tatwer).
7. The Saudi Agricultural and livestock company.
8. The Saudi International Ports.
9. The Saudi Company for Technical Development and Investment (Taqneh).
10. Tadawl Real Estate Company.
Execution of Rail Road projects in the KSA
Pursuant to a Royal Decree, the PIF has offered a complete funding to construct and operate the North-South Rail Road project to transport minerals, general cargo, and passengers connecting the Northern Region of KSA at AlHaditha, passing to Hazm Aljalmid, Aljouf, Hail, Al Qassim to Riyadh. The total value of the contracts already signed amount to SR 14,500 million.
In compliance with the Custodian of the Two Holy Mosques’ instructions to establish a high Speed Rail Transport system equipped with all modern amenities for passenger services, PIF has funded the Harmain High Speed Rail project connecting Makkah, Jeddah and Madinah. The total value of the Civil Work contracts to-date signed amount to SR 47,200 million. The remaining contracts to complete the project are under way.
P. O. Box # 6847 Riyadh - 11452
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Ministry Of Finance Compound
Riyadh, Kingdom Of Saudi Arabia