What to invest the resources of a US$1 trillion sovereign wealth fund in? The managers of Saudi Arabia's sovereign wealth fund (PIF, as it is known) are clear: 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 so it is hoped).

In addition to investing in companies such as electric vehicle manufacturer Lucid Motors or video game companies such as Activision and Electronic Arts, the PIF is seeking to stimulate investment within the kingdom to develop new industries and attract foreign investment and create new jobs. The fund is involved in the ambitious Neom project, a state project to build a US$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 is planning to issue a green bond backed by its broad portfolio of investments in sustainable assets, including Neom, where the world's largest project for the production of hydrogen free of greenhouse gas emissions is located.

Source: Bloomberg