How to Partner with PIF: Co-Investment, Joint Ventures, and Partnership Structures

Introduction: The PIF as a Global Investment Partner

The Public Investment Fund of Saudi Arabia has evolved from a domestic holding company managing government stakes in Saudi enterprises into one of the world’s largest and most active sovereign wealth funds, with assets under management exceeding $900 billion. Under the leadership of Governor Yasir Al-Rumayyan and the strategic direction of Crown Prince Mohammed bin Salman, PIF has become the central engine of Saudi Arabia’s economic transformation — deploying capital across dozens of sectors, creating new industries from scratch, and partnering with global companies to bring world-class capabilities to the Kingdom.

For international investors and companies, PIF represents both an opportunity and a distinctive challenge. The opportunity is access to one of the largest pools of patient, strategic capital in the world — a partner that can write checks measured in billions, provide access to the Saudi market, and offer the implicit backing of the Saudi government. The challenge is understanding how PIF operates, what it looks for in partners, and how to structure relationships that align with the fund’s strategic objectives while delivering attractive returns for co-investors.

This guide provides a comprehensive overview of PIF’s partnership ecosystem — from the fund’s organizational structure and investment strategy to the practical mechanics of co-investing, forming joint ventures, and becoming a PIF portfolio company supplier or strategic partner.

Understanding PIF’s Structure and Strategy

Organizational Overview

PIF operates through a complex organizational structure that includes direct investment teams, wholly owned subsidiaries (known as “giga-project companies” and “sector champions”), fund-of-funds programs, and international investment platforms.

Direct investments: PIF makes direct investments in Saudi and international companies across a wide range of sectors. Domestically, PIF’s direct portfolio includes stakes in Saudi Aramco, STC (Saudi Telecom Company), SABIC, Saudi National Bank, and dozens of other major Saudi enterprises. Internationally, PIF holds positions in companies like Lucid Motors, SoftBank Vision Fund, and numerous technology, entertainment, and infrastructure companies.

Wholly owned subsidiaries: PIF has created over 90 companies from scratch to develop new sectors and build national champions. These subsidiaries include giga-project companies (NEOM, The Red Sea Development Company, Qiddiya, Roshn), sector-specific entities (ACWA Power for renewable energy, Saudi Coffee Company, Cruise Saudi, Saudi Entertainment Ventures), and infrastructure companies (Riyadh Airports Company, King Salman Park).

Fund-of-funds programs: PIF allocates capital to external fund managers through its Jada (fund-of-funds) platform and its Sanabil Investments venture capital arm. These programs provide PIF with exposure to a diversified portfolio of investments managed by experienced fund managers.

International investment platforms: PIF has established international investment offices and platforms, including the Saudi-Japanese Vision Fund, the Russia-Saudi investment fund, and bilateral investment platforms with several other countries.

Investment Strategy

PIF’s investment strategy is driven by several core objectives:

Domestic economic diversification: PIF is mandated to drive Saudi Arabia’s economic diversification by investing in sectors that reduce the Kingdom’s dependence on oil revenue. Priority sectors include tourism, entertainment, sports, technology, manufacturing, renewable energy, logistics, and financial services.

Job creation: PIF targets the creation of 1.8 million direct and indirect jobs by 2030 through its domestic investments. Every PIF investment is evaluated, in part, on its potential to create employment opportunities for Saudi nationals.

Financial returns: PIF seeks competitive financial returns on its investments. The fund’s target return on assets and its investment decision-making processes are designed to ensure that its capital is deployed productively, even as it pursues strategic and economic development objectives.

Technology transfer: PIF actively seeks partnerships that bring new technologies, capabilities, and expertise to Saudi Arabia. International companies that can offer technology transfer, knowledge sharing, and training programs are particularly attractive as PIF partners.

Localization: PIF promotes the localization of supply chains and economic activity within Saudi Arabia. Partners that commit to establishing manufacturing facilities, R&D centers, and training programs in the Kingdom receive preferential consideration.

Partnership Models with PIF

Co-Investment

What it is: Co-investing alongside PIF in a specific transaction or project. PIF may lead the investment and invite co-investors to participate, or PIF may participate as a co-investor in a transaction led by another investor.

How it works:

1. PIF identifies an investment opportunity (or is presented with one by an investment partner)
2. PIF evaluates the opportunity against its investment criteria
3. If approved, PIF structures the investment and, if seeking co-investors, approaches potential partners
4. Co-investors conduct their own due diligence and negotiate terms alongside PIF
5. The investment is executed with PIF and co-investors as shareholders or partners

Typical co-investment structures:

• Equity co-investment: PIF and co-investors jointly acquire equity in a target company. PIF may hold a majority or minority stake, depending on the transaction.
• Fund co-investment: Co-investors participate in specific deals alongside a PIF-backed fund (such as an STV or Sanabil portfolio investment).
• Project co-investment: PIF and co-investors jointly fund a development project (infrastructure, real estate, industrial facility), typically through a special purpose vehicle (SPV).

Access: Co-investment opportunities with PIF are typically available through established relationships with PIF’s investment team, through PIF-backed fund managers, or through investment banks and advisors that work with PIF on specific transactions.

Joint Ventures

What it is: A JV between PIF (or a PIF subsidiary) and an international company to develop a specific sector, project, or capability in Saudi Arabia.

How it works:

1. PIF identifies a strategic sector or capability that it wants to develop in Saudi Arabia
2. PIF approaches potential international partners with relevant expertise, technology, or market position
3. The parties negotiate a JV agreement covering capital contributions, governance, management responsibilities, technology transfer, localization commitments, and financial terms
4. The JV is established as a Saudi legal entity (typically a JSC or LLC) and commences operations

Examples of PIF joint ventures:

• Lucid Motors: PIF invested over $3.4 billion in Lucid Motors and partnered with the company to establish an electric vehicle manufacturing facility in King Abdullah Economic City (KAEC)
• ACWA Power: PIF is the majority shareholder of ACWA Power, which has developed renewable energy projects across the Middle East in partnership with international energy companies
• Cruise Saudi: A JV with Carnival Corporation to develop the Saudi cruise tourism industry
• Saudi Entertainment Ventures (SEVEN): A PIF subsidiary partnering with international entertainment companies to develop theme parks, cinemas, and entertainment centers across Saudi Arabia

Key JV terms that PIF typically negotiates:

• Saudi localization requirements: PIF JVs typically include commitments to localize a minimum percentage of supply chain, workforce, and R&D activities in Saudi Arabia
• Technology transfer: International partners are often expected to transfer technology, proprietary processes, or training capabilities to the JV and its Saudi employees
• Governance: PIF typically retains significant governance rights, including board representation, major decision approval rights, and exit provisions
• Performance milestones: JV agreements may include performance milestones (production targets, job creation targets, revenue thresholds) that trigger additional capital commitments or governance changes
• Exit provisions: PIF JVs typically include put/call options, tag-along/drag-along rights, and IPO as a potential exit pathway

Portfolio Company Partnerships

What it is: Becoming a supplier, service provider, or technology partner to one of PIF’s 90+ portfolio companies and subsidiaries.

How it works:

1. Identify PIF portfolio companies operating in your sector or value chain
2. Engage with the portfolio company’s procurement, business development, or partnership team
3. Propose a commercial relationship (supply contract, technology partnership, service agreement, licensing arrangement)
4. Negotiate terms and execute the partnership

PIF portfolio companies seeking partners:

• NEOM: Requires thousands of suppliers and technology partners for its $500 billion development program. NEOM has published specific opportunities in areas including construction, technology, water and energy, mobility, health, food, and media.
• The Red Sea Development Company (TRSDC): Developing a luxury tourism destination with demand for hospitality operators, construction companies, environmental technology providers, and destination management companies.
• Roshn: Saudi Arabia’s national housing developer, creating master-planned communities across the Kingdom. Partners needed in construction, smart home technology, community management, and retail.
• Qiddiya: A entertainment, sports, and arts destination near Riyadh. Partners needed in theme park design and operation, sports facility management, event production, and hospitality.
• Saudi Entertainment Ventures (SEVEN): Developing entertainment centers across the Kingdom. Partners needed in entertainment content, ride design and manufacturing, food and beverage, and retail.

Fund Investment

What it is: Investing in or alongside PIF-backed funds managed by external fund managers.

How it works:

1. PIF allocates capital to external fund managers through Jada (fund-of-funds), Sanabil (venture capital), and bilateral investment platforms
2. External fund managers raise additional capital from international LPs (limited partners) to supplement PIF’s commitment
3. Investors commit capital to the fund as LPs, alongside PIF
4. The fund manager deploys capital according to the fund’s investment strategy

PIF-backed fund platforms:

• Jada Fund of Funds: Invests in private equity and venture capital funds focused on Saudi Arabia and the broader MENA region
• Sanabil Investments: PIF’s dedicated venture capital platform, investing in early-stage technology companies
• Bilateral funds: PIF has established bilateral investment funds with several countries, including Japan (Saudi-Japanese Vision Fund), Russia, India, and France

How to Engage with PIF

Direct Engagement

For companies seeking to partner with PIF directly, the following channels are available:

PIF’s investment teams: PIF has sector-specific investment teams covering technology, real estate, entertainment, tourism, energy, manufacturing, and financial services. Companies can approach these teams directly through PIF’s corporate website or through professional introductions.

The Future Investment Initiative (FII): The annual FII conference in Riyadh (commonly known as “Davos in the Desert”) is PIF’s flagship investor event, attracting thousands of investors, corporate executives, and government leaders. FII provides a platform for companies to present investment opportunities, network with PIF leadership, and explore partnership possibilities.

MISA facilitation: The Ministry of Investment (MISA) can facilitate introductions to PIF for significant foreign investors. MISA’s investor relations team works closely with PIF and can help companies navigate the fund’s organizational structure.

Professional advisors: Investment banks, law firms, and consulting firms with PIF relationships can facilitate introductions and help companies prepare partnership proposals. Key advisors in the Saudi market include Goldman Sachs, JP Morgan, Morgan Stanley, HSBC, McKinsey, BCG, Bain, and the major international law firms with Riyadh offices.

What PIF Looks For in Partners

Strategic alignment: PIF prioritizes partners whose capabilities align with the fund’s sector priorities and Vision 2030 objectives. Companies that can contribute to economic diversification, job creation, and technology transfer are most attractive.

Track record: PIF conducts rigorous due diligence on potential partners, evaluating their financial performance, operational capabilities, management quality, and reputation. A strong track record in your sector is essential.

Commitment to Saudi Arabia: PIF favors partners who demonstrate a genuine, long-term commitment to the Saudi market — not companies seeking a quick transaction or using PIF capital to fund non-Saudi activities.

Technology and expertise: Partners that bring proprietary technology, specialized expertise, or world-class operational capabilities are particularly valued. PIF’s mandate includes building Saudi Arabia’s capabilities across multiple sectors, and partners who contribute to this capability-building are preferred.

Financial capacity: PIF expects partners to contribute meaningful capital to joint ventures and co-investments, not merely to provide services or expertise in exchange for PIF capital. The financial commitment demonstrates alignment of interests and risk-sharing.

Preparing a Partnership Proposal

When approaching PIF with a partnership proposal, consider the following:

Lead with the Saudi value proposition: Explain how your partnership will benefit Saudi Arabia — jobs created, technology transferred, supply chain localized, capabilities developed. PIF’s primary mandate is domestic economic development, and proposals that clearly serve this mandate receive the most attention.

Demonstrate market understanding: Show that you understand the Saudi market, its opportunities and challenges, and how your capabilities address a genuine need. Generic proposals that could apply to any market are less effective than Saudi-specific strategies.

Quantify the opportunity: Provide detailed financial analysis — market size, revenue projections, capital requirements, return expectations, and risk assessment. PIF’s investment teams evaluate opportunities with the same rigor as any global institutional investor.

Propose clear structures: Rather than approaching PIF with an open-ended request, propose specific partnership structures (JV, co-investment, supply agreement) with clear terms, governance arrangements, and timeline.

Bring references: PIF values partners with established track records. Provide case studies of similar partnerships in other markets, references from other sovereign wealth funds or government entities you have worked with, and evidence of your operational capabilities.

Legal and Regulatory Considerations

Corporate Structuring

PIF partnerships are typically structured through Saudi legal entities (JSC or LLC). Foreign partners must comply with MISA investment licensing requirements and Saudi corporate law. Key structural considerations include:

• Ownership percentages: PIF may hold majority or minority positions depending on the transaction. Minority partners should ensure their governance rights (board representation, major decision approval, information access) are adequately protected in the shareholders’ agreement.
• Capital contributions: Define the timing, form (cash, in-kind, technology), and valuation of each partner’s capital contribution.
• Profit distribution: Establish clear profit distribution policies that reflect each partner’s capital contribution, risk-bearing, and value-adding role.
• Exit mechanisms: Include clear exit provisions (put/call options, tag-along/drag-along, IPO, trade sale) and deadlock resolution mechanisms.

Intellectual Property

For partnerships involving technology transfer, intellectual property protection is critical:

• IP ownership: Clearly define who owns pre-existing IP, jointly developed IP, and derivative IP created during the partnership
• License terms: If licensing IP to the JV, specify the scope, territory, duration, and royalty terms
• Protection mechanisms: Register IP in Saudi Arabia (trademarks, patents, trade secrets) and include contractual protections (non-disclosure, non-compete, indemnification)

Dispute Resolution

PIF partnerships typically include sophisticated dispute resolution provisions:

• Governing law: Saudi law is typically specified as the governing law for domestic JVs, though international arbitration may be available for cross-border elements
• Arbitration: Many PIF partnerships specify international arbitration (ICSID, ICC, LCIA, or the Saudi Center for Commercial Arbitration) as the primary dispute resolution mechanism
• Step-up provisions: Multi-tier dispute resolution clauses that progress from management-level negotiation to mediation to arbitration

Common Challenges and How to Address Them

Pace of Decision-Making

PIF’s decision-making process can be slower than private sector norms, particularly for large or strategically significant investments that require board-level or government approval. International partners should:

• Build buffer time into their project timelines
• Engage with multiple levels of PIF’s organization to maintain momentum
• Be responsive to PIF’s information requests and due diligence requirements
• Understand that PIF’s approval process reflects its governance obligations as a sovereign entity

Cultural and Business Norms

Partnering with a Saudi sovereign wealth fund requires sensitivity to Saudi business culture:

• Relationship-driven: Business relationships in Saudi Arabia are built on personal trust and sustained engagement, not just transactional efficiency
• Hierarchy: Decision-making authority is concentrated at senior levels, and proposals must ultimately be endorsed by senior PIF leadership
• Hospitality: Saudi business culture places great importance on hospitality, and partners who invest time in relationship-building (visiting Riyadh, attending events, hosting Saudi counterparts) build stronger partnerships
• Long-term orientation: PIF thinks in decades, not quarters. Partners who demonstrate patient, long-term thinking align better with PIF’s investment horizon

Localization Expectations

PIF’s localization requirements can be challenging for international companies accustomed to centralized global operations:

• Workforce nationalization: JVs must comply with Saudization (Nitaqat) requirements, which may require significant investment in recruiting and training Saudi employees
• Supply chain localization: PIF increasingly expects portfolio companies and JV partners to source goods and services from Saudi suppliers
• R&D localization: Partners may be expected to establish research and development capabilities in Saudi Arabia, not merely manufacturing or service delivery

Case Studies of Successful PIF Partnerships

Lucid Motors: Electric Vehicle Manufacturing

PIF invested over $3.4 billion in Lucid Motors, the American electric vehicle manufacturer, and established a manufacturing facility in King Abdullah Economic City. The partnership demonstrates PIF’s approach to technology transfer — bringing advanced EV manufacturing capabilities to Saudi Arabia while creating jobs and supporting the Kingdom’s automotive ambitions.

Hyatt Hotels: Tourism Development

PIF partnered with Hyatt Hotels to develop luxury hospitality properties across Saudi Arabia, supporting the Kingdom’s tourism growth objectives. The JV combines PIF’s capital and Saudi market access with Hyatt’s hospitality management expertise and global brand.

ACWA Power: Renewable Energy

PIF’s majority stake in ACWA Power has supported the company’s growth into one of the world’s leading renewable energy developers. ACWA Power has developed solar and wind projects across the Middle East, Africa, and Central Asia, with PIF’s backing providing the financial strength and strategic support needed for large-scale project development.

Conclusion

Partnering with PIF is one of the most significant commercial opportunities available to international companies and investors. The fund’s scale, strategic mandate, and willingness to commit patient capital to long-term projects make it an unparalleled partner for companies that can contribute technology, expertise, and operational capabilities to Saudi Arabia’s economic transformation.

Success in PIF partnerships requires understanding the fund’s strategic priorities, demonstrating genuine commitment to the Saudi market, and bringing capabilities that PIF cannot develop internally. Companies that approach PIF with well-structured proposals, realistic expectations, and a willingness to invest in long-term relationships will find a partner that is serious, well-capitalized, and deeply committed to building a diversified, knowledge-based economy in the Kingdom.

The window of opportunity is significant — PIF’s domestic investment program is accelerating, its portfolio companies are actively seeking partners, and the fund’s appetite for international partnerships continues to grow. For companies with the right capabilities and commitment, PIF partnership is not just an investment opportunity — it is a strategic entry point into one of the world’s most dynamic economic transformation stories.

Donovan Vanderbilt is the founder of The Vanderbilt Portfolio and publisher of Invest Riyadh. This guide is for informational purposes only and does not constitute legal, financial, or investment advice.