PIF governor Yasir Al Rumayyan noted that the fund has increased its global reach, unveiled giga-projects, launched portfolio companies and delivered “ahead of financial return targets – in line with the goals of its Vision Realisation Programme 2021-2025”.
Saudi Arabia’s Public Investment Fund (PIF) issued an 80-page annual report reviewing its performance and financials for 2023. PIF continues to be a major driver of Saudi Arabia’s economic transformation with initiatives in transportation, mining, real estate, infrastructure, health, communications, technology, tourism and sports. The report claims PIF has created over 730,000 direct and indirect jobs across its many investments and giga projects.
According to Arabian Business, “Several PIF-backed projects are expected to contribute significantly to job creation and economic growth. Riyadh Air is poised to contribute $20 billion to non-oil GDP growth and create over 200,000 direct and indirect jobs while Qiddiya City is projected to generate more than 325,000 permanent jobs… Other notable PIF-backed initiatives that are expected to drive job creation include The Saudi Company for Artificial Intelligence, Ardara, and The National Unified Procurement Company (NUPCO).”
By year end 2023 PIF’s assets under management (AuM) had increased 29% to $765 billion. As of July 2024, PIF AuM stands at $925 billion while PIF has recorded an average total shareholder return of 8.7% per year. The jump in the value of the PIF’s assets was supported by the transfer of a 4 per cent Saudi Aramco stake to one of its subsidiaries, as well as the appreciation in its equity portfolio driven by the rally in global stocks last year.
Reporting for The National, Sarmad Khan notes that:
“The fund’s international portfolio last year reached 586 billion riyals, a 14 per cent year-on-year rise, with international strategic investments climbing to 249 billion riyals, its diversified international assets reaching 146 billion riyals and international equity portfolio jumping to 190 billion riyals, according to the fund’s annual report. The PIF said it was “well ahead” of its target for international investments.
The fund in-house managed 85 per cent of its investment portfolio, while the remaining 15 per cent was handled by external managers. The PIF’s international investments accounted for 20 per cent of its aggregate portfolio, as opposed to 76 per cent for investments in the domestic market. The fund’s treasury holdings accounted for about 3 per cent of its investments at the end of 2023.”
Khan adds that, “The fund is the central plank of the kingdom’s Vision 2030 programme, which aims to cut its dependence on oil. The PIF, along with its related organisations, is driving investment into key areas including finance, health care, sport, renewables, technology, the automotive industry, property, aerospace, defence, entertainment, leisure, retail and mining.”
PIF is now the sixth-largest sovereign wealth fund globally in assets under management and is rated A1 by Moody’s with a positive outlook and A+ by Fitch with a stable outlook.
To read more, click here, here, here, here and here.
