Saudi Arabia’s Public Investment Fund (PIF) has raised concerns about European regulations that it says are hindering international investors, including itself and major Saudi companies such as Aramco and Sabic. Speaking at a summit in Rome, Yasir al-Rumayyan, governor of the PIF, pointed to regulatory challenges that are affecting both the expansion of investments and the retention of existing assets in Europe.

While al-Rumayyan did not provide specific details, his remarks align with apprehensions expressed by legal and consulting firms based in Brussels. These experts highlight the European Union’s foreign subsidies regulation, which took effect in 2023, as a significant barrier for Middle Eastern investors. The legislation empowers EU authorities to block companies that receive foreign government subsidies from participating in public contracts, mergers and acquisitions, and sales within the single market. The European Commission has already used this framework to investigate Abu Dhabi’s state oil company’s acquisition of the German chemical firm Covestro, though that transaction ultimately received approval.

Sources advising investors have noted the prevailing uncertainty surrounding the EU regulatory environment, which they say dampens investment enthusiasm. “There is a lot of uncertainty, which investors don’t like,” remarked one legal adviser familiar with client concerns regarding EU investments.

European Union officials, however, have downplayed the complaints, suggesting they primarily represent lobbying efforts rather than evidence of a marked slowdown in investment from the Middle East. One EU official noted that if investors from the region are exercising greater caution, it is more likely linked to geopolitical tensions, such as the conflict involving Iran, rather than the bloc’s regulatory framework.

Al-Rumayyan expressed optimism that European regulators and policymakers will address these issues with improved solutions to encourage investment. "The good thing is the European regulators and policymakers are looking into it and hopefully will have better solutions," he said at the summit hosted by the Future Investment Initiative Institute, a Saudi non-profit supported by the PIF.

The PIF governor also detailed the fund’s significant financial footprint in Europe and the UK, stating that it had invested approximately €98 billion from 2017 through 2025. These investments have contributed to the creation of around 160,000 jobs. In addition, Aramco has invested about €80 billion with European suppliers during the same period. PIF’s European portfolio includes holdings in companies such as the Italian supercar manufacturer Pagani and luxury yacht maker Azimut Benetti.

Earlier this year, the PIF unveiled a new five-year strategy emphasizing increased domestic investments to support Saudi Arabia’s major infrastructure projects ahead of Expo 2030 and the 2034 FIFA World Cup. Despite this domestic focus, al-Rumayyan affirmed the fund’s continued commitment to international investments, stating, "A lot of people thought we will stop deploying investment internationally. I can tell you that’s not going to stop. We’ll continue doing so and deploying investments."

The comments from the Saudi sovereign fund reflect ongoing tensions between foreign investors and EU authorities over regulatory oversight amid a competitive global landscape for capital flows.