'Our target is' - PIF plan possible cuts at Newcastle United in major strategy rethink
Newcastle United chairman Yasir Al-Rumayyan has vowed to reduce the Public Investment Fund’s international investment by 12 per cent.
As it stands, around 30 per cent of PIF’s portfolio is tied up overseas. This includes Newcastle, a club they acquire an 85 per cent stake in. Vision 2030 is Saudi Arabia’s ambitious project to diversify the country’s economy away from oil by the end of the decade.
Sport has played an integral part in the Gulf state’s recent spending spree. Boxing, MMA, F1, snooker, darts, WWE and the Saudi Pro League have all received significant PIF investment.
But almost a decade into the government-backed programme, PIF are poised to tilt their outlay towards domestic spending. Al-Rumayyan, the Toon chairman who also serves as PIF’s governor, opened up about the wealth fund’s meteoric rise.
PIF now manage assets worth around $930billion - making Newcastle’s owners the richest in world football. However, FFP/PSR restrictions have prevented them from rapidly transforming the Magpies.
They now appear set to shift their focus towards a more pro-Saudi outlook, with Al-Rumayyan revealing how companies are keen to co-invest in the country. This raises further questions about whether PIF remain interested in Newcastle given the lack of recent backing.
“The (international investments of the fund) increased from two per cent (in 2015) all the way up to 30 per cent”, he told the Future Investment Initiative summit in Riyadh. “Now our target is to bring it down to a range between 18 to 20 per cent.
“People used to come to us and ask for money. We are now seeing that shift from people wanting to take our money to people wanting to co-invest. All of these companies are big investors in new sectors that were not in existence in Saudi Arabia. People are seeing the difference, from their perception of Saudi Arabia back in 2015.”