DUBAI, Oct 25 (Reuters) - Saudi Arabia's main sovereign wealth fund -- the Public Investment Fund (PIF) -- released its first comprehensive business plan on Wednesday.
It said it wants to increase its assets under management to 1.5 trillion riyals ($400 billion) by 2020 from around $230 billion.
Here are some details from the 96-page programme for 2018-2020. Some of the below details such as cooperation with other sovereign wealth funds and equity firms have previously been disclosed. All targets are for reaching by 2020 unless specified:
* Increase total shareholder return to 4-5 percent from a previous target of 3 percent.
* Investments to be structured in six areas: Saudi equity holdings, sector development, real estate and infrastructure, mega projects, international investments and a "diversified pool" across global asset classes.
* "Long-term" average annual return from these areas to be between 6.5 percent and 9 percent. No exact time frame given.
* Create 20,000 direct domestic jobs, including 11,000 high-skilled local jobs, and 256,000 construction jobs.
* Increase PIF's contribution to Saudi Arabia's gross domestic product to 6.3 percent from 4.4 percent.
* Utilise four major sources of funding: capital injections from the government, government asset transfers, loans and debt instruments, retained earnings from investments.
* New domestic assets expected to reach 20 percent of total PIF assets under management and contribute 30 billion riyals to Saudi GDP in real terms.
* International assets expected to reach 25 percent of assets under management. This should attract 20 billion riyals in foreign direct investments on a cumulative basis.
* Invest 210 billion riyals - both directly and through its portfolio companies - in advanced technology sectors and research and development, locally and internationally.
* Set up the Saudi Military Industries company (SAMI) to localise military spending with a target of 50 percent by 2030. This is expected to contribute 900 million riyals and create 5,000 jobs by 2020.
* Invest in local projects including a Red Sea tourist hub, a business and industrial zone extending into Jordan and Egypt called NEOM, and an entertainment destination in the Qiddiya area of the Riyadh region.
* International partnerships include investment in the SoftBank Vision Fund - the world's largest private equity fund - expected to reach $100 billion. The focus is on the technology sector in areas such as robotics and artificial intelligence.
* PIF has already committed $20 billion to a $40 billion fund to invest in U.S. infrastructure alongside private equity firm Blackstone.
* Will invest up to $10 billion in joint Russia-Saudi projects as part of agreements with the Russian Direct Investment Fund (RDIF), the sovereign wealth fund of Russia. It has invested more than $1 billion so far.
* Will invest in a private equity programme focused specifically on France and Europe. It will work though French private equity managers over seven years and investments will include a mix of growth, leveraged buy-out, and private debt.
* PIF has invested $3.5 billion in U.S. ride services company Uber for a 5 percent stake in the company. PIF Managing Director Yasir Al Rumayyan said on Wednesday the fund was open to investing in more big ticket items like this.
* Established the Saudi-Jordanian Investment Fund Company this year to encourage Saudi investments in Jordan including in the infrastructure, tourism and energy sectors.
The full programme is available here: http://www.pif.gov.sa/pifprograms/PIF%20ProgramtEN.pdf (Compiled by Sylvia Westall, Alex Cornwell and Davide Barbuscia Editing by Jeremy Gaunt)