Saudi Arabia is among world’s fastest-growing economies

Saudi Gazette report

RIYADH — The 8^th edition of the Future Investment Initiative (8FII) 2024 summit explored, on its first day, the importance of investing in economies, development projects, and creating supportive legal frameworks to attract international investors and leverage technology for growth and prosperity.

Taking part in a dialogue session on geo-economics, Governor of the Public Investment Fund (PIF), Chairman of Saudi Aramco and Chairman of the FII Institute Yasir Al-Rumayyan highlighted the fact that Saudi Arabia is one of the world’s fastest-growing economies, and expected to maintain this momentum among G20 nations in the coming years.

He emphasized PIF’s focus on investing in AI, leveraging the Kingdom’s capabilities to establish itself as a global AI hub. He also presented PIF’s investments in the sports sector. “We currently have $930 billion in assets under management and the share of foreign assets is 30 percent. The PIF has established many bold investment partnerships with major companies, and there is a qualitative shift in employing its investments. “We are focusing on the local economy as we have established 92 new companies since 2015, and we have achieved major achievements since then.”

Al-Rumayyan said that Saudi Arabia is well positioned to be a global center in the field of artificial intelligence, not just regionally, as there is a great benefit from the low cost of energy, not only fossil but also renewable energy.” He noted that major players in the energy sector have invested more than $65 billion in low-carbon technologies since 2017, “and this is just the beginning.”

BlackRock Chairman Larry Fink said higher interest rates have helped support many older segments of society, with senior savers around the world benefiting greatly from higher interest rates. “We’re not going to see interest rates go down to the levels that many people are hoping for,” he said while stressing that more capital needs to be directed toward infrastructure and technology.

“There’s $9 trillion of private equity money waiting for the right opportunities,” Fink said. Speakers in the session emphasized the significance of the banking sector and of reserve funds, noting the need for advanced technologies and competitive salaries to attract and retain talent. They highlighted the role of financial technology in enhancing the profitability and efficiency of businesses, including of banks, in the era of rapid technological advancements.