Saudi Arabia's Public Investment Fund (PIF) has announced the establishment of the Fund of Funds, a new SR4 billion ($1.07 billion) investment vehicle designed to provide small and medium-sized enterprises (SMEs) with access to capital.
The new fund will also support the creation of a thriving private equity and venture capital ecosystem in the kingdom, PIF said in a statement.
The fund will empower the private sector and increase its contribution to national GDP by encouraging venture capital and private equity investments, it added.
With capital of SR4 billion, the fund will support the development of SMEs in creating job opportunities, promoting innovation and increasing exports.
Its contributions to national GDP is estimated to be around SR400 million by the end of 2020, with the provision of more than 2,600 jobs. Its contribution to GDP is expected to increase to SR8.6 billion by the end of 2027, creating around 58,000 jobs.