Recently, the head of Saudi Arabia's Public Investment** (PIF) announced plans to open an office in Chinese mainland, part of their multiple investments in the Chinese market so far this year. Previously, the UAE's sovereign wealth ** Mubadala Investment Company also opened an office in Beijing in September this year.
Saudi Public Investment**'s decision to open an office in China shows that they want to be more deeply involved in China's economic development and look for opportunities to partner with Chinese companies. This will help strengthen economic cooperation and bilateral relations between China and Saudi Arabia.
So what exactly is the origin of Saudi public investment**?Let's take a look at it first.
Established in 1971, Saudi Public Investment** (PIF) is one of Saudi Arabia's most important sovereign assets**. As one of the world's largest sovereign wealth investors**, PIF manages Saudi Arabia's investment portfolio and is committed to driving the country's economic diversification and sustainable development.
As a sovereign wealth, PIF is financed primarily by oil revenues from Saudi Arabia. The ** seeks high returns and long-term appreciation through investments both domestically and internationally to support Saudi Arabia's economic development and diversification.
As a major oil producer in the world, Saudi Arabia has always known that financial power can never compete with political power. It has maintained close relations with the three giants of the United States, Russia and China. These countries play an important role in global power, and Saudi Arabia will never be able to bypass these countries in its oil production.
In the U.S., Saudi Arabia's Public Investment** (PIF) has committed $20 billion to Blackstone's infrastructure** program, which aims to focus on U.S. infrastructure modernization investment. Meanwhile, as of September 30, 2023, Saudi public investment** in the U.S.** has a market value of $36.5 billion. This shows the scale of PIF's investment in the U.S. market and demonstrates their support for the U.S. economy and businesses.
In Russia, Saudi Public Investment** (PIF) has undertaken a $10 billion joint investment project with Russian Direct Investment**. PIF has invested $2 billion in this project, covering a variety of sectors including infrastructure, manufacturing, logistics and retail. This joint investment program further strengthens the partnership between Saudi Arabia and Russia.
It doesn't matter if you make money or lose money, just like the ancient Qinglou woman in the joke who funded the scholars who went to Beijing to take the exam, there is always a champion who casts a wide net, and it is easy to go in the future if you have a good relationship now.
In the law of the jungle, the fist is always the biggest. Saudi public investment**'s investment in the Chinese market is also partly a reflection of China's international status and influence.