Case Studies: PIF Investments & Political Implications
In this section, a selection of flagship domestic and foreign investments undertaken by the PIF will be examined to demonstrate the role of capital allocation as a mechanism of political economy. It is not intended to provide a list of the PIF’s portfolio of investments, but illustrates the different political ramifications of various categories of investments.
Category I: Domestic State-Building and Internal Legitimacy (Saudi Arabia)
Motivation:
PIF invests in domestic megaprojects to strengthen internal support for the government within the country, modernize the Saudi economy, and reduce reliance on oil revenues. These projects function as state-building tools that signal long-term commitment to economic transformation while anchoring Vision 2030 within Saudi society. (mention sa inflation and keeping $ outside of country)
NEOM
Investment
The NEOM project is an upcoming megacity situated in the northwestern region of Saudi Arabia, with financing and management mainly provided by the Public Investment Fund. The project encompasses a wide range of areas, including infrastructure, renewable energy, technology, and tourism. The undertaking is part of the Vision 2030 flagship investment worth billions of dollars launched by Saudi Arabia in the late 2010s and 2020s.
Political and Diplomatic Impact
From a political point of view, NEOM is an example of a state-building activity that emphasizes modernization and a promising transformation of the economy. To a certain extent, this helps to establish internal legitimacy while making it costly for foreign businesses to disengage.
Red Sea Global
Investment
It is a development company owned by PIF and is behind major tourism developments along the Red Sea coast of Saudi Arabia, specifically the Red Sea Project and Amaala. It started development work in the late 2010s under Vision 2030 and through the 2020s.
Political and Diplomatic Impact
Such tourism investments are targeted at an international clientele, working towards a transformation of Saudi Arabia’s image before the global community, based on sustainability, openness, and modernisation. Saudi Arabia is thus making economic connections that go beyond normal diplomatic ties through such tourism investments.
Category II: Global Soft Power and Reputational Influence (United States / International)
Motivation:
Through high-visibility investments in Western technology, mobility, energy, and sports, PIF embeds Saudi capital into globally influential sectors. These investments help rebrand Saudi Arabia as a modern economic actor while creating economic interdependence with major global industries.
Uber (United States)
Investment
Uber Technologies Inc. is a United States-based mobility and technology business in which PIF invested roughly $3.5 billion in the year 2016, acquiring a substantial minority equity stake. This particular transaction is one of PIF’s earliest high-profile overseas technology investments, undertaken during the phase of Uber’s expansion in the international markets.
Political and Diplomatic Impact
Involving Saudi capital in a large American technology company, the resulting investment established an economic interdependence between the Kingdom of Saudi Arabia and a key sector of the American economy. Its high visibility helped the kingdom to establish its new image internationally as more than just “an oil state.”
Lucid Motors (United States)
Investment
Lucid Motors is an American electric vehicle manufacturing firm that is majority-owned by PIF as a result of a significant investment of billions of dollars in 2018. This makes PIF the controlling shareholder of the firm and will help to create a relationship between the United States and Saudi Arabia concerning production and operations.
Political and Diplomatic Impact
In terms of politics, this investment puts Saudi Arabia in conformity with the energy transition around the world. By having itself anchored in the electric vehicles space, it is building economic partnerships with other nations even as it refashions its image globally as being beyond petroleum.
LIV Golf (Global)
Investment
LIV Golf is a professional golf league that was formed in the year 2021 and funded chiefly by the Public Investment Fund. LIV Golf can be considered a kind of state-supported venture and not an investment that aims to maximize profits.
Political and Diplomatic Impact
LIV Golf operates as a soft power tool by linking Saudi Arabia to the global cultural sector. The high profile of the league attracted vast international attention, hence embedding Saudi Arabia’s capital into the global sport institutions through cultural interaction rather than governmental diplomacy.
Category III: Regional Influence and Economic Interdependence (Middle East)
Motivation:
PIF also deploys capital within the Middle East to reinforce Saudi Arabia’s regional leadership. By investing in finance and energy infrastructure in neighboring states, Saudi Arabia builds long-term interdependence with key regional partners while extending influence through institutional and economic integration rather than direct political involvement.
Masdar (United Arab Emirates)
Investment
Masdar is a renewable energy firm based out of Abu Dhabi with a focus on clean energy and sustainable infrastructure. There has been engagement with Masdar by the Public Investment Fund through regional partnerships and co-investment programs that fit into the Vision 2030 agenda of Saudi Arabia with regards to diversification and sustainability of energy sources.
Political and Diplomatic Impact
By being involved with Masdar, Saudi Arabia finds itself embedding its capital into the UAE-driven renewable energy sector, thus increasing the economic interdependence between the two large Gulf countries. This partnership improves the position of Saudi Arabia in the region by aligning itself with the energy transformation and expanding its reach into the energy infrastructure sector.
Banque Misr (Egypt)
Investment
Banque Misr is among Egypt’s largest public sector banks and an essential component in Egypt’s financial sector. The Public Investment Fund has been involved in Egypt-targeted financial sector partnerships with large public sector players, which indicate a strategic rather than purely commercial investment strategy.
Political and Diplomatic Impact
The PIF’s role in the Egyptian banking sector is a way of linking Saudi Arabian capital to the stability of Egypt’s economy. This has led to increased dependence on each other’s economies and has given Saudi Arabia the ability to influence Egypt’s politics without necessarily being involved.
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Cumulatively, these examples demonstrate the various ways that the Public Investment Fund applies its capital to different industries. Through domestic megaprojects, the government enhances its legitimacy, while through foreign investment, it forges interdependencies that equate to reputational power on the global stage. These investments in the cultural and tourism industries spread the presence of Saudi Arabia throughout the world, adding context to the application of the investment strategy through the ‘Vision 2030’ program.