RIYADH: Saudi Arabia’s Public Investment Fund (PIF) has significantly increased its green project investment plan to over $19.4 billion, encompassing 91 eligible projects across renewable energy and clean transportation sectors.
In its second 'Allocation and Impact Report,' PIF provided a comprehensive update on the allocation and impact of its green bonds as of June 30. The report highlighted that PIF has identified a capital expenditure portfolio of over $19.4 billion for eligible green projects, with $8.5 billion allocated under its two green bonds issued in 2022 and 2023.
The report detailed 18 operational projects under categories such as renewable energy, energy efficiency, green buildings, clean transportation, sustainable water management, pollution prevention, and sustainable land use. PIF has allocated $457 million for these projects, with $372 million dedicated to eight green building projects.
Additionally, $18.9 billion has been allocated to 73 projects currently under construction, with green buildings receiving the largest share at $6.3 billion for three projects.
One of the most notable projects funded by PIF’s green bonds is Red Sea Global, a tourism development owned by PIF. As of June 30, 2024, PIF has allocated $1.7 billion of green financing for The Red Sea and AMAALA projects. These projects are designed to meet third-party certified green building standards, ensuring sustainability.
The report also mentioned the NEOM Water Distribution project, where PIF has fully funded NEOM’s water transmission and distribution pipelines, allocating over $1 billion to support nine water transmission projects. This initiative aims to enhance water-use efficiency and resilience against water scarcity.
PIF’s green bond strategy aligns with Saudi Arabia’s Vision 2030, which aims to diversify the economy and achieve net-zero carbon emissions by 2060. PIF’s investments are expected to contribute significantly to the Kingdom’s economic growth while promoting environmental sustainability.
