PIF does not target annual, quarterly profit; satisfied with ret

Abdulmajeed Alhagbani, Head of Securities Investments, MENA Investments Division, at the Public Investment Fund (PIF), said the Saudi market has a unique advantage, especially for Asian investors.

Assets are priced in riyal, which is pegged to the US dollar, which provides relative stability compared to other markets. Additionally, Saudi Arabia enjoys strong economic growth and a young demographic that drives the economy forward, Al-Eqtisadiah newspaper reported, citing Alhagbani.

"Our mission is to highlight these advantages to foreign investors, which contributed to our success and increased demand for our investment products," he noted.

The fund does not aim for annual or quarterly profits, as its investments are long-term and based on well-studied criteria to achieve sustainable returns. "We are satisfied with the returns achieved from our investments," Alhagbani stated.

The fund mainly focuses on opening doors to the Saudi market and attracting international investors through enhancing transparency and providing clear indicators of economic opportunities in the Kingdom. This supports the flow of foreign investments into the Saudi capital market.

Over the past years, asset management in the Kingdom primarily focused on the local market, with limited foreign investor participation. However, recent developments led by the Capital Market Authority and government programs facilitated foreign investor entry.

These measures alone are not enough, as the fund's role is to establish key partnerships with global asset managers, particularly in the US, where they have extensive expertise and strong investment capabilities.

"These partnerships enable us to develop investment products in line with the fund’s objectives in terms of returns and medium- to long-term investments," Alhagbani said.

"We are working to strengthen institutional investment in the market, which limits market fluctuations and enhances corporate governance among listed companies," the official noted.

He added that the strong presence of institutional investors improves the quality of information and corporate management, ultimately raising the overall market standard.

PIF’s partners are currently operating in six major markets, Hong Kong, Shenzhen, Shanghai, Frankfurt, Tokyo, and London.

"Selecting these markets aligns with our strategy of reaching and attracting global investors to the Saudi market. For example, our presence in Frankfurt serves neighboring markets, making it accessible to most European investors through exchange-traded funds (ETFs)," Alhagbani noted.