Saudi Arabia’s sovereign wealth fund has expressed concerns that European regulations are hindering international investors and limiting further capital inflows into the region, while also highlighting substantial investment plans in Europe. Yasir al-Rumayyan, governor of the Public Investment Fund (PIF), shared these views at a summit in Rome, where he noted that regulatory challenges and certain laws have negatively impacted investors like the PIF itself, Saudi Aramco, and chemicals group Sabic.

While Rumayyan did not specify the regulations in detail, his remarks echo apprehensions raised by legal and consultancy professionals in Brussels regarding the European Union’s foreign subsidies regulation, which came into effect in 2023. This regulation grants the European Commission the authority to block companies benefiting from foreign government subsidies from participating in public procurement, mergers and acquisitions, or even selling products and services within the EU single market. The commission has already applied this tool in an in-depth probe into Abu Dhabi’s state oil company acquiring the German chemical firm Covestro, a transaction that was eventually approved.

Rumayyan indicated that these rules are causing uncertainty among investors. One legal adviser working with Middle Eastern clients investing in the EU described this uncertainty as unwelcome for investors. Despite these concerns, EU officials have downplayed the impact of the regulation, suggesting that recent caution among investors from the Middle East may be more attributable to geopolitical tensions, including the war involving Iran, rather than the regulatory environment.

Nonetheless, Rumayyan expressed optimism that European policymakers are aware of the issues and may develop better solutions to encourage investment. He underscored the scale of the PIF’s existing commitments, stating that the fund has invested approximately €98 billion across the EU and UK from 2017 to 2025, supporting around 160,000 jobs. Furthermore, Aramco has invested about €80 billion with European suppliers. The PIF’s portfolio in Europe includes stakes in Italian luxury and manufacturing firms such as supercar maker Pagani and yacht group Azimut Benetti.

Earlier this year, the PIF launched a new five-year strategy placing increased emphasis on domestic investments aimed at supporting Saudi Arabia’s large-scale development projects, including preparations for Expo 2030 and the 2034 FIFA World Cup. Nonetheless, Rumayyan affirmed the fund’s ongoing commitment to international investment, rejecting suggestions that the PIF would halt overseas deployments. “We’ll continue doing so and deploying investments,” he said at the event hosted by the PIF-backed Future Investment Initiative Institute.