Public Investment Fund's Assets Exceed SAR2.871 Trillion In 2023, Boosting Saudi Economy

The Public Investment Fund (PIF) has released its annual report for 2023, showcasing significant advancements across various sectors in Saudi Arabia and globally. The report highlights PIF's role in driving economic transformation in line with Saudi Vision 2030. It also underscores the fund's commitment to transparency and good governance, adhering to GIPS international standards.

PIF's assets under management (AuM) surged by 29% to SAR2.871 trillion ($765 billion) by the end of 2023. As of July 2024, AuM stands at $925 billion. The fund recorded an average total shareholder return of 8.7% per year since the inception of the VRP. Total net cash returns for both Saudi Sector Development (SSD) and Saudi Equity Holdings (SEH) pools reached $11.2 billion (SAR42 billion), surpassing the target of $5.3 billion (SAR20 billion).

PIF has launched several initiatives to support local businesses, including MUSAHAMA and the Suppliers Development Program. These programs aim to enhance private sector companies' visibility into supplier and investment opportunities within PIF and its subsidiaries. By year-end 2023, PIF had created over 730,000 direct and indirect jobs, with the total reaching more than 763,000 by Q1 2024.

International Investments

In 2023, PIF invested SAR586 billion ($156 billion) internationally, a 14% increase from the previous year. The international investment portfolio focuses on industries shaping the global economy, aiming to generate significant long-term returns and localize expertise in Saudi Arabia. Notable ventures include a joint factory with Hyundai and partnerships with Pirelli and Baosteel.

Sector-Specific Developments

PIF has made substantial investments in key sectors such as transportation, real estate, health, technology, tourism, and sports. The launch of Riyadh Air marks a new national carrier for Saudi Arabia. The Electric Vehicle Infrastructure Company (EVIQ) aims to accelerate EV adoption in the country. Additionally, PIF introduced Lifera in pharmaceuticals and Al Balad Development Company in real estate.

Real Estate Growth

The Saudi Real Estate and Infrastructure Development (SREID) pool saw a 15% year-on-year increase, reaching $62 billion (SAR233 billion) in AuM. This growth reflects PIF's strategic focus on enhancing infrastructure development within Saudi Arabia.

Credit Ratings

Moody’s rated PIF A1 with a positive outlook, while Fitch assigned an A+ rating with a stable outlook. These ratings reflect confidence in PIF's financial stability and strategic direction.

The launch of PIF’s inaugural Private Sector Forum was pivotal in highlighting opportunities for local businesses to align with PIF’s mandate. Several key initiatives were unveiled at this event, promising enhanced visibility into supplier and investment opportunities within PIF and its subsidiaries.

By continuing to deploy significant investments locally and internationally, PIF supports growth in strategic economic sectors crucial to Saudi Arabia's domestic economy. This approach aligns with its objectives of delivering sustainable returns and driving economic transformation as part of Saudi Vision 2030.

Overall, PIF's efforts have not only bolstered its financial performance but also contributed significantly to job creation and sectoral development both within Saudi Arabia and globally.

With inputs from SPA