DAVOS — Saudi Arabia's approach to innovation and economic diversification has become a global reference point, according to remarks made by the Minister of Economy and Planning Faisal Al Ibrahim, at the World Economic Forum (WEF) 2024. The minister highlighted the Kingdom's strategy, which focuses on bold movements and learning by doing, emphasizing global collaboration as a key factor in driving innovation. Speaking at a panel session titled 'Investors of First Resort: Government Inc.' at #WEF24, minister Al Ibrahim discussed the pivotal role of the Public Investment Fund (PIF) in creating a conducive environment for profitability in the private sector. He explained how Saudi Arabia has prioritized 13 sectors to expedite diversification, stressing the importance of sovereign wealth funds as pathfinders that pave the way for private capital. The minister underscored the significance of collaboration in the green energy transition, stating that success in this area hinges on joint efforts in accelerating innovation and technology. He also shed light on how the PIF has built organic capabilities, attracting global talent and leading investments in strategic sectors. Focusing on Saudi Vision 2030, Al Ibrahim emphasized investing in people as the cornerstone of building capabilities and long-term success. The Kingdom's partnership with international institutions, including a collaboration with Singapore, aims to strengthen the capabilities of its public sector. This focus on empowering youth and building institutional capacities is central to Saudi Arabia's rapid economic diversification. Al Ibrahim also highlighted the momentum behind long-term thinking in addressing today's greatest challenges, creating opportunities for public and private sectors to collaborate on global solutions. He pointed out that sovereign wealth funds worldwide are increasingly adopting a strategy of providing "impatient capital" to address strategic problems directly. He noted that in response to recent global crises, countries and economies are realizing the need to unlock their potential more effectively, a goal that Saudi Arabia is actively pursuing through its innovative and collaborative approaches.
