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State power in the global economy is now being practiced through markets instead of the conventional methods of diplomacy. The current world sees states exerting their influence in international relationships not solely by the use of treaties or diplomacy, but by making investments that determine industries. Sovereign wealth funds play a major role in this shift, as a way in which states project influence across borders.

This project will focus on Saudi Arabia’s use of the Public Investment Fund as a case study in understanding the role of the market in the exercise of state power. The function of this study is to show how the Public Investment Fund functions both as a political and financial entity, using investment as a tool to achieve economic change as well as foreign policy objectives. It will analyze how ownership, sponsorship, and development create political effects.

It is important to understand this phenomenon globally because it is the same strategy that is being employed by nations to gain leverage in the multipolar system. As the use of capital as a tool of governance continues to rise, the distinction between economics and international relations continues to blur. Through the way Saudi Arabia uses investment to achieve Vision 2030, the transformation in the exercise of power in the contemporary international political economy will be brought to light.

Research Question

How does Saudi Arabia leverage the Public Investment Fund as a mechanism of achieving economic diversification while at the same time influencing the international political structure as outlined by Vision 2030?