Prime Highlights
- Saudi Arabia’s Public Investment Fund (PIF) plans to invest SAR 1 trillion ($267 billion) in real estate and hospitality projects over the next five years.
- The fund will act as a master developer, building infrastructure while private sector partners contribute as investors, developers, and contractors.
Key Facts
- PIF aims to develop 200,000 new housing units and approximately 90,000 hotel rooms to meet domestic demand and boost tourism.
- The investment aligns with Saudi Arabia’s Vision 2030, supporting economic diversification and creating opportunities for local and international companies.
Background
Saudi Arabia’s Public Investment Fund (PIF) is preparing to invest SAR 1 trillion, equal to nearly $267 billion, in real estate and hospitality projects over the next five years. A senior official confirmed the major commitment, saying it is part of the Kingdom’s broader push to support national development and expand economic opportunities.
Saad Alkroud, Head of the Local Real Estate Investment Division at PIF, told Al-Arabiya Business that the fund will follow a master developer model. PIF will build the main infrastructure and important public services, while the private sector will join as investors, developers, contractors, and suppliers. This approach aims to create a strong value chain that helps both the public and private sectors.
According to Alkroud, PIF plans to develop 200,000 new housing units and around 90,000 hotel rooms during this period. These projects will meet Saudi Arabia’s growing demand for homes and boost the fast-growing tourism and hospitality industry.
This large investment shows PIF’s growing role in shaping Saudi Arabia’s real estate. It also supports Vision 2030, which aims to diversify the economy, attract global visitors, and develop big residential and tourism projects across the Kingdom.
Industry experts say the fund’s long-term investment will open major opportunities for local and international companies. With PIF leading as the main developer, private firms across the construction, financing, and supply sectors are expected to play a big part in turning these ambitious plans into reality.
PIF is making one of its biggest real estate investments so far, showing that it trusts Saudi Arabia’s growth prospects.
