The following words and phrases, wherever they appear in the Law, shall have the meanings specified next to each, unless the context of the text requires otherwise:

The Fund: Public Investment Fund.
The Law: Law of the Fund.
The Council: Board of Directors of the Fund.
The President: President of the Council.
The Governor: Governor of the Fund.
Internal Rules and Policies: A set of regulations, instructions, and procedures issued by the Council to organize the internal affairs of the Fund.

The fund is organizationally linked to the Council of Economic and Development Affairs, has a public legal personality, enjoys financial and administrative independence, and is headquartered in the city of Riyadh. It has the authority to open branches inside and outside the Kingdom as needed.

The fund aims to invest its funds - either in cash or in kind - according to the best standards to achieve returns that serve the public interest and contribute to supporting economic development in the Kingdom and diversifying its sources of income, while taking into account the interests of future generations.

The fund shall have the necessary powers to achieve its objectives and perform its functions and tasks in accordance with the law, which include the following:
1- Investment inside and outside the Kingdom, ownership of assets and actions related to them, including real estate, property rights, shares, securities, foreign currencies, commodities, and financial derivatives of all kinds.
2- Establishing companies and other special purpose entities inside and outside the Kingdom, and participating in them either alone or with others.
3- Lending and other forms of financing.
4- Entering into loans and other forms of indebtedness, including the issuance of sukuk and bonds.
5- Issuing guarantees for companies and other special purpose entities that it owns or in which it participates.
6- Concluding agreements and memoranda of understanding related to its activities with relevant authorities in countries and international organizations.
7- Engaging in any other activity or action approved by the council that achieves the fund's objectives and aligns with its nature of work.

The Fund shall have a Board of Directors chaired by the President of the Council of Economic and Development Affairs, and consisting of the Governor and no less than four other members with expertise and specialization, including representatives from the relevant authorities. Their appointment shall be by Royal Decree, and their term of membership shall be five years, renewable.

The Council shall be responsible for overseeing the affairs of the Fund, managing it, achieving its objectives, and exercising the powers stipulated in the Law. To this end, it shall have the broadest authorities and powers, and it shall approve and issue the internal rules and policies; this includes the following:
1- Establishing the investment strategy, policies, and procedures, including determining the targeted returns, the mechanism for making investment decisions, monitoring performance, and exiting investments.
2- Establishing the profit distribution policy of the Fund.
3- Establishing procedures and systems for risk management.
4- Determining the accounting standards and policies for preparing and auditing the Fund's financial statements, and determining the beginning and end of the financial year.
5- Approving loan agreements and other forms of indebtedness, including the issuance of sukuk and bonds, in accordance with the controls it establishes in this regard.
6- Establishing controls for nominating and appointing representatives of the Fund on the boards of directors of companies and other entities owned or contributed to by the Fund, and determining their rewards, rights, and obligations towards the Fund.
7- Establishing policies and procedures related to tax compliance.
8- Determining the authorized signatories on behalf of the Fund.
9- Approving the procedures governing media communication.
10- Approving the Fund's financial and administrative regulations.
11- Approving the organizational structure of the Fund, and how to organize its functions and tasks and distribute them.
12- Approving the Fund's annual budget and its annual report.
The Council may form subordinate committees to which it delegates any of its tasks and responsibilities as required by the interests of the work.
It may also delegate the Governor or any of the Fund's employees any of its powers in accordance with the internal rules and policies.

The Council shall submit to the Council of Economic and Development Affairs the internal rules and policies that regulate the matters referred to in paragraphs (1), (2), (3), (4), and (5) of Article (6) of the Law, and the rules and procedures governing its work referred to in Article (8) of the Law, or any amendments made thereto, at least (fifteen) days and not more than (thirty) days from the specified date for their enforcement. During that period, the Council of Economic and Development Affairs may direct the Council to make any amendments to those rules and policies as it deems appropriate.