The Saudi crown prince will relaunch his grand plans

Significance

Crown Prince Mohammed bin Salman has started 2021 with a series of bold initiatives to give fresh impetus to visionary investment plans, after a pause because of reputational reverses and then COVID-19. The PIF is the main instrument for these, with support from the Saudi private sector, foreign investment and international borrowing.

Impacts

• The PIF will reduce its prioritisation of foreign trophy assets.
• Pressure on central bank reserves could endanger the currency peg in the longer term.
• Saudi Arabia will emphasise climate-friendly approaches to placate a new US administration.