Saudi Arabia’s Public Investment Fund has identified a capital expenditure portfolio of over $19.4 billion in green projects and allocated $5.2 billion as of June 30.
According to the sovereign fund’s recently published Allocation and Impact Report, this outlay is part of its ongoing commitment to sustainable finance.
The report highlights the significant investments in areas such as renewable energy, green buildings and sustainable water management projects.
Funds allocated have been directed toward developments that meet specific eligibility criteria designed to promote environmentally friendly initiatives.
One of the most prominent undertakings is Red Sea Global, a tourism project that spans 28,000 sq. km. and includes more than 90 islands.
The development is designed to be a luxury, eco-friendly tourism destination focusing on sustainability, preserving marine and land ecosystems and promoting biodiversity.
According to the report, PIF has allocated $1.7 billion of green financing for The Red Sea Project and Amaala as of June 30.
Amaala, another high-end tourism destination, is situated along the northwestern Red Sea coast. It focuses on wellness, art, and culture, offering a unique blend of health tourism and sustainable luxury.
In October 2022, PIF made history by issuing its inaugural green bond, becoming the first sovereign wealth fund to do so, and launching the world’s first 100-year green bond.
The issuance of green bonds enables PIF to diversify its debt funding sources further while driving impactful green investments across Saudi Arabia.
The fund is rated A1 by Moody’s with a positive outlook and A+ by Fitch with a stable outlook, reflecting its strong creditworthiness.
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