PIF’s robust governance model paves way for effective private partnerships
RIYADH: Private sector partnering with the Public Investment Fund is set to benefit from its robust governance and operational models with a wide network of local and international partners, according to the fund’s top official.
Speaking at its inaugural forum to woo private sector companies, Abdulmajeed Al-Hagbani, head of the Securities Investments Department at PIF, said the fund has set a specific system for governance and specific committees to manage such investments.
He revealed that PIF has a structure in place “to take the necessary effective actions and decisions and follow up with them and monitor them within the private sector in order to maximize the revenues and also to benefit all of the investors.”
Highlighted three vital frameworks that pave the way for fruitful and effective partnerships with the PIF, Al-Hagbani said the second important framework is adopting an effective operational model.
“The PIF established the center for shared services to develop innovation, develop businesses, and provide infrastructure for all of the businesses that are owned by the PIF,” he insisted.
He pointed out that private firms partnering with the PIF are also going to benefit from the fund’s enterprise communication services and logistics funding as well as the efficiency of the human resources.
Speaking at the panel titled “Building Successful Partnerships between PIF and the Private Sector” during the first day of the PIF Private Sector Forum, he added that the third and final framework is the PIF’s network.
This comes as the PIF has a pool of local, regional as well as international investors, companies, businesses, and government-related entities.
“These partnerships may unlock and unleash new horizons for our partners from the private sector,” he explained.
Also speaking at the same panel, Zamil Group CEO Adib Al-Zamil stressed on the importance of having long-term investments, especially when it comes to oil exploration.
“Long-term investment in oil exploration is not just a commercial thing that you can do it overnight. You need a long time, especially if you want to develop that sector, to be an international oil company,” Al-Zamil added.
Another panelist, Paddy Padmanathan, who is the president and CEO of ACWA Power, shed light on the Kingdom’s investment ecosystem and how this is aiding firms across sectors.
“The Kingdom is now providing a fantastic ecosystem for people to come in and invest, so you are able to start taking advantage of this and really develop industrial capacity,” he emphasized.
The PIF Private Sector Forum is set to play host to a number of leading companies from Saudi Arabia as it seeks to boost partnerships with the private sector.
The Saudi Arabian Mining Co., also known as Ma’aden, and the Saudi Arabian Military Industries are among those holding workshops during the two-day event, which begins on March 14 in Riyadh.
More than 4,000 private sector participants are anticipated to attend the forum, which will also host speeches and more than 50 exhibitors.
Various partnership opportunities will be showcased, alongside several announcements regarding deals already struck involving the PIF as it seeks to diversify the Saudi economy in line with the Vision 2030 initiative.
