How a Giant Fund Is Building Saudi Arabia’s Post-Oil Future

Saudi Arabia’s sovereign wealth fund is spreading around the oil-rich kingdom’s largesse as never before. It has been particularly bold in the world of sports, where investments in golf and soccer fit with a broader government strategy to promote the country’s tourism, soften its image abroad and improve the quality of life for citizens. The Public Investment Fund, better known as the PIF, is the main vehicle for Crown Prince Mohammed bin Salman’s global ambitions and its assets have swelled to nearly $800 billion.

The PIF’s main purpose is investing for Saudi Arabia’s post-oil future, while also attracting foreign cash into the country by kick-starting new industries. One focus is tourism: In a country that until recently was largely closed off to foreign holidaymakers and regarded entertainment as a taboo, the PIF is investing in luxury resorts, cinemas and amusement complexes to lure more tourists and to stop Saudis seeking fun abroad. The PIF also invests alongside some of the world’s biggest asset managers and dealmakers. It has built a team of more than 50 people in New York to manage a growing portfolio of US stocks, and has offices in Europe and Asia.