Where should a US$1 trillion sovereign wealth fund invest its resources? The managers of Saudi Arabia's sovereign wealth fund (known as PIF) are clear about this: in businesses and assets that prepare the world's largest oil exporter for a future in which the world will consume less and less oil (or at least that is the expectation).

In addition to investing in companies such as electric vehicle manufacturer Lucid Motors and video game companies such as Activision and Electronic Arts, the PIF is seeking to stimulate investment within the kingdom to develop new industries, attract foreign investment, and create new jobs. The fund is participating in the ambitious Neom project, a state-led project to build a $500 billion smart city that will run entirely on renewable energy.

The fund is not content with the resources generated by oil. It is in negotiations with international banks to obtain financing and plans to issue a green bond backed by its broad portfolio of investments in sustainable assets, including Neom, home to the world's largest project for the production of greenhouse gas-free hydrogen.

Source: Bloomberg