Planned Saudi investments to create 256,000 construction jobs
Investments by Saudi Arabia's Public Investment Fund are likely to create more than 260,000 construction jobs by 2020 [representational image].
Programmes planned by Saudi Arabia's Public Investment Fund (PIF) are expected to create up to 260,000 construction jobs by 2020.
The PIF Program 2018-2020 was launched on 25 October, 2017, as part of the kingdom’s Vision 2030 Vision Realization Programs (VRP).
Comprising 30 initiatives, PIF Program 2018-2020 will see the value of the fund’s assets under management (AUM) increase to $400bn (SAR1.5tn) by 2020.
The programme will create 20,000 direct domestic jobs – more than half of which are high-skilled roles – and 256,000 construction jobs.
Four key objectives listed by the PIF Program include growing and maximising PIF's assets; developing new sectors; localising advanced technologies and knowledge; and building strategic economic partnerships.
The programme also outlines how PIF – the kingdom's sovereign wealth fund (SWF) – aims to complement private sector development through domestic investment pools, which are split between its Saudi Holdings, Saudi Sector Development, Saudi Real Estate, Infrastructure Development, and Saudi Giga-Projects investments.
PIF's domestic pools are responsible for driving schemes such as Neom, the Red Sea Project, and the Al Qidiya Project, as well as the establishment of nine specialised companies, such as the Saudi Real Estate Refinancing Company (SRC), state news agency, SPA, reported.
SRC was formed to increase the rate of homeownership by nationals to 52% by 2020.
Earlier this month, PIF that SRC would work to improve the performance of the kingdom's real estate sector, as well as its contribution to the country's gross domestic product (GDP).
Demand for property finance in the kingdom is expected to increase from $74.7bn (SAR280bn) in 2017 to $133.3bn (SAR500bn) in 2026.
SRC was launched in partnership with the Ministry of Housing and under the chairmanship of the Minister of Housing, Majed al-Hoqail.
The firm is expected to refinance up to $20bn (SAR75bn) in the kingdom's real estate sector over the next five years.
PIF also established an energy services company (ESCO) in October.
The SWF's firm, called Super Esco, was established with capitalisation worth $507m (SAR1.9bn).
Super Esco will work with the kingdom's Ministry of Energy, Industry, and Mineral Resources; Ministry of Finance; and the Saudi Energy Efficiency Centre, to create partnerships with the private sector.
The firm will fund and manage the retrofit of government and public-sector buildings in the kingdom.
Last month, PIF unveiled two development companies focussed on the country's holy sites.
Rou’a Al Madinah will deliver projects aimed at increasing the capacity for pilgrims and visitors to the Prophet’s Mosque.
The company will develop a 130ha project 1,000m away from the Prophet's Mosque's east wing.
Up to 500 housing units and 80,000 hotel rooms will be developed within the project.
Meanwhile, PIF also confirmed that it is preparing to launch Rou'a Al Haram, a development company that will focus on pilgrims and visitors to the Grand Holy Mosque.
"Rou’a Al Haram will act as a catalyst for developing the areas around the holy sites and raising the quality of services in the local hospitality sector," PIF announced in a statement.
