CNBC in its report on 1 May 2019 said the managing director of Saudi Public Investment Fund, one of the largest wealth funds in Saudi Arabia, shared the fund’s interest to expand in China, though the number 1 priority is the United States.
Yasir Othman Al-Rumayyan told the U.S. media outlet that as part of PIF’s efforts to expand internationally, the company is opening up offices in New York, San Francisco, and London. From $300 billion in assets under management, the move could help PIF to achieve its target of $2 trillion by 2030.
PIF Keeps an Eye on China
Moreover, Al-Rumayyan said the fund also keeps an eye on the Asian market because of the region’s potential for growth. China, the second largest economy in the world, is the number one focus of PIF, according to Al-Rumayyan, who made the comments during the Milken Institute Global Conference in Los Angeles.
Al-Rumayyan, who has been holding the post since 2015, recently visited Beijing for a forum on China’s Belt and Road Initiative. The project involves the construction of rail, sea and other transportation routes spanning from central Asia to Africa.
Al-Rumayyan said, “this is the first time for me to go out and meet asset managers, companies, Chinese entrepreneurs, and they are really very impressive”. He continued, “the GDP growth now is, I think, at 6.25% which is larger than most of the other countries around the world. But the concern is it came down from 11-plus percent. I don’t mind growing the 6% if I’m entering now in China. The Softbank Vision Fund also deployed big amounts of money in China and some of the Chinese companies. So we are OK in the longer term.”
Focus on the U.S. For now.
However, Al-Rumayyan reiterated that for now, the U.S. market is their primary target as most innovations happen in the U.S. “We have deployed directly and indirectly more than $50 billion in the past two years in the U.S. So that’s a big demonstration to the interest that we have here,” he said.