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Significance
Crown Prince Mohammed bin Salman has started 2021 with a series of bold initiatives to give fresh impetus to visionary investment plans, after a pause because of reputational reverses and then COVID-19. The PIF is the main instrument for these, with support from the Saudi private sector, foreign investment and international borrowing.
Impacts
The PIF will reduce its prioritisation of foreign trophy assets.
Pressure on central bank reserves could endanger the currency peg in the longer term.
Saudi Arabia will emphasise climate-friendly approaches to placate a new US administration.
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2021
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