PIF sees increase in returns from SoftBank investment, says Al-Rumayyan

Yasir Al-Rumayyan, Governor of PIF

The returns on the Public Investment Fund's (PIF) investment in SoftBank increase continuously, adding SAR 10 billion at the end of 2020, said PIF governor Yasir Al-Rumayyan.

He added that it is not accurate to describe this investment as "being in default," as it may have been defaulted in early 2020, but turned profitable at the end of the year.

"In general, there is no investment without risk, so risks and returns should be taken into account when considering any investment. However, there should be a balance; the best investment should have the least risk," Al-Rumayyan said.

Before the PIF undertakes any investment, it is not only approved by the investment management, but also by the risk management that decides whether this investment is rewarding, given the relevant risks.

As regards investing in giant projects such as Neom, Al-Rumayyan said, "We have many factors that contribute to mitigating the risks of such mega projects, including the government support and law development."

The governor also confirmed that Saudi Aramco's shareholders had stated that if the market conditions are favorable, they will sell more shares.

On Jan. 25, 2021, the governor said that Saudi Arabia might consider listing more Saudi Aramco shares, in case of a correct valuation, adding that the company is studying a large program to restructure assets.

Commenting on the fund’s efforts to import some products such as vehicles, Al-Rumayyan pointed out that one of the fund's main portfolios aims to develop sectors, adding that several companies have been established to operate in this field, such as the Helicopter Company.

The PIF is considering investment in projects manufacturing materials, electrical appliances and vehicles, the implementation will start in 2021 or 2022.

The governor stressed that 80% of the fund's managers are Saudis and the remaining 20% are non-Saudis, which reflects that the PIF focuses on achieving goals regardless of nationalities.