The Public Investment Fund (PIF) of Saudi Arabia is aiming to increase its investments in the semiconductor and space industries this year as part of the kingdom's strategy to diversify its economy away from reliance on oil. According to Saudi Minister of Communications and Information Technology Abdullah Alswaha, the PIF is planning a substantial investment in the semiconductor industry and is expected to announce a specific champion to lead Saudi efforts in this sector. Additionally, the fund intends to establish a national space company to invest in and acquire assets within the space industry, with a focus on potential mergers and acquisitions.
The PIF, a significant component of Crown Prince Mohammed Bin Salman's economic diversification plan for Saudi Arabia, has rapidly amassed assets of approximately $700 billion and aims to control $1 trillion by 2025. One of its core initiatives is the development of an auto manufacturing hub on the kingdom's West coast, with plans to include semiconductor and battery production alongside the assembly of electric vehicles from companies such as Lucid Group Inc., Hyundai Motor Co., and Ceer, a brand created by the PIF.
Regarding the space industry, Saudi Arabia launched its space program in 2018 and intends to become a regional and global leader in the sector by 2030 and 2040, respectively. Communication is highlighted as a significant focus in the kingdom's space investments, aiming to address the connectivity needs of billions of people worldwide who remain unconnected. Minister Alswaha expressed confidence in the kingdom's ability to continue attracting investment from both US and Chinese technology companies, emphasizing Saudi Arabia's pro-investment, pro-partnership stance and openness to collaboration with entities that comply with regulatory and security requirements while serving national interests.
