Saudi Arabia’s Public Investment Fund (PIF) is preparing to double its European investments to $170 billion by 2030, according to its Governor, Yasir Al-Rumayyan. Speaking at the Future Investment Initiative (FII) Priority Summit in Tirana, he stressed both the region’s potential and the growing concerns over regulatory uncertainty.
PIF has already invested $85 billion in Europe since 2017. These investments, Al-Rumayyan stated, have created around 254,000 jobs and contributed approximately $52 billion to EU GDP. By 2030, that impact is expected to rise to $105 billion. Despite this strong economic presence, the fund is reevaluating its strategy in response to new EU sustainability regulations that could deter global investors.
Regulatory Risks Could Threaten Investment Momentum
While outlining the fund’s future commitment, Al-Rumayyan did not hold back on his criticism of the EU’s incoming sustainability rules. These rules, set to come into effect in 2028 after a two-year delay, include over 1,000 compliance metrics. He warned that such regulations may discourage not only sovereign funds but also private capital.
“The regulation is saying if you’re not compliant, you will be penalised not only for your operation in Europe, but on the parent company—5 per cent of your top line,” he noted. Al-Rumayyan cited PIF’s former stake in Credit Suisse as an alarming example. He explained that a sudden legal change in Switzerland had eliminated the fund’s investment overnight, despite 150 years of precedent. This, he said, signals a lack of reliability that could drive investors elsewhere.
Albania Positioned as a Growth Example
In contrast, Al-Rumayyan praised Albania as a country with a dynamic and business-friendly environment. He described it as one of Europe’s fastest-growing economies and highlighted its openness to reform. Although PIF intends to deepen its involvement in the region, Al-Rumayyan insisted that policy consistency remains crucial.
“We want to continue investing here. But we need clarity. We need consistency,” he emphasized. According to him, unpredictable regulations remain the single largest barrier to securing both public and private sector funding in Europe.
The FII Priority Summit in Tirana convened global leaders and investors to explore how to build stronger economic ties across a more connected Europe. It also served as a platform to highlight the significant role sovereign wealth funds can play in driving long-term growth.
