Discuss the idea of diversification in investments and how canSaudi Arabia's economy benefit from this concept?

For example

Diversification is a risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio.

Saudi Arabia is stepping up plans to turn its sovereign wealth fund into a global giant. The Public Investment Fund is central to the government’s effort to diversify the economy away from oil, under a plan known as Vision 2030.

 

The Saudi Public Investment Fund seeks to become one of the largest sovereign wealth funds in the world. To achieve this, the Fund is building a world-class, diversified portfolio through investments in attractive, long-term opportunities at both the domestic and international level.