In an April 4 interview with the Bloomberg news agency, Deputy Crown Prince Mohammed bin Salman announced Saudi Arabia's plan to launch a National Transformation Program to shape the kingdom’s economy for the post-oil period. According to the prince, the program will aim to increase the Public Investment Fund (PIF) by restructuring the investments, companies and other assets currently held by the fund. The question now is how can the Saudis ensure the outcomes they seek?
The PIF was established pursuant to a royal decree of Aug. 18, 1971, with capital of 1 billion riyals, the equivalent of $266 million today. Article II of the decree stipulates, “The PIF will finance commercial projects belonging to the government, to industrial institutions associated with the government and to public institutions. These projects shall be either executed independently or through a partnership between the mentioned administrative authorities and private institutions.”