Saudi Arabia appoints new investment minister to bolster Vision 2030 delivery

DUBAI, Feb 12 (Reuters): Saudi Arabia appointed a senior executive at its sovereign wealth fund, Fahd bin Abduljalil bin Ali al Saif, as its new investment minister on Thursday as part of a shift in the Gulf state's far-reaching economic diversification plan.
Al Saif had headed up the global capital finance division and investment strategy at the $925 billion Public Investment Fund (PIF). He replaces Khalid Al-Falih, who oversaw the kingdom's opening to foreign investment under the Vision 2030 transformation blueprint, and has previously served as energy minister and chairman of state oil giant Aramco.
The cabinet reshuffle, in which Al-Falih was appointed Minister of State, was announced by royal decree. PIF did not immediately respond to a request for comment.
Saudi Arabia, the world's top oil exporter, is pivoting from heavy expenditure on futuristic Vision 2030 projects such as NEOM's The Line, to initiatives in logistics, mining, AI and other sectors seen as more pressing and potentially profitable.
"The timing is likely linked to the telegraphed shift in investment strategy, toward more high-impact and revenue-generating sectors," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
"Central to the investment programme is the need to increase capital inflows. The change in minister is likely linked to this, alongside the focus on AI."
Falih was appointed to the post in 2020 with the aim of opening up the economy and attracting more foreign direct investment to fund Saudi Arabia's ambitious plans to diversify its oil-focused economy.
The kingdom is pursuing a target of $100 billion in annual foreign direct investment by 2030. While foreign direct investment has been increasing under a series of structural reforms to attract global capital and investors, it has lagged ambitious targets. FDI inflows totalled 119.2 billion riyals ($32 billion) in 2024.