Saudi Arabia’s PIF Allocates $5.2 Billion for Green Projects

As of June 2024, Saudi Arabia's Public Investment Fund (PIF) has allocated USD 5.2 billion (approximately EUR 4.77 billion) from green bond proceeds to eligible projects, according to its latest Allocation and Impact Report. Of this amount, around USD 665 million is dedicated to renewable energy initiatives, while the largest share—nearly USD 1.8 billion—is focused on sustainable water management.

PIF distinguished itself in 2022 as the first sovereign wealth fund to issue a green bond, initially raising USD 3 billion. This was followed by a more substantial USD 5.5 billion multi-tranche issuance in February 2023, which was significantly oversubscribed, attracting over USD 33 billion in total subscriptions.

By mid-2024, PIF had fully allocated the proceeds from its first issuance and approximately 40% of the second. The fund has identified a total of 91 green projects that are either operational or under construction, with an estimated capital expenditure of USD 19.4 billion. The green finance framework encompasses various categories, including renewable energy, green buildings, sustainable water management, and energy efficiency.

Among these identified projects, 13 renewable energy initiatives are expected to collectively require USD 3.06 billion in capital expenditure. Once operational, these projects will generate enough electricity to power around 150,000 homes annually. Additionally, the funds directed towards sustainable water management will support 17 projects, projected to supply desalinated water to approximately 32,500 individuals each year.