PIF’s strong performance is driving economic transformation 
The Public Investment Fund, Saudi Arabia’s sovereign wealth fund, reported strong financial results in 2023, based on financial statement issued in accordance with the International Financial Reporting Standards requirements and published as per the listing requirements of the London Stock Exchange.
The financial statements have demonstrated encouraging financial performance across PIF’s range of investments, evidenced by the strong returns witnessed in the progress against its long-term objectives in 2023.
PIF has succeeded in achieving sustainable financial returns, driving economic transformation in the Kingdom in line with the Saudi Vision 2030.
Revenues have grown to SR331 billion ($88.3 billion) in 2023, up by more than 100 percent compared with 2022 total revenues of SR165 billion.
Revenues generated from operating businesses and services activities, such as telecommunication, banking and financial services, mining, and gaming, contributed significantly to the improvement witnessed in the PIF’s total revenues in 2023.
Revenues from telecommunication, banking and financial services, mining and gaming, amounted to SR178 billion, representing 75 percent of the total revenues.
Profit after tax and zakat in 2023 swung to a profit of SR64 billion in 2023 after a SR17 billion loss the previous year.
Total assets increased from SR2.9 trillion in 2022 to SR3.7 trillion in 2023, up by 28 percent.
Retained earnings and reserves increased from SR583 billion in 2022 to SR707 billion in 2023, up by 21 percent.
The sovereign wealth fund has succeeded in achieving sustainable financial returns.
The cash position of PIF has witnessed significant improvement, surging from SR56 billion in 2022 to SR243 billion in 2023, up 30 percent.
KPMG concluded that the PIF’s consolidated financial statements for 2023 present a fair and accurate picture of the group’s fiscal health. The audit confirmed that PIF adhered to IFRS and the standards issued by the Saudi Organization for Chartered and Professional Accountants.
I believe that PIF’s 2023 financial results warrant KPMG’s opinion, especially since the fund has played a pivotal role in meeting its strategic financial objectives in line with the Saudi Vision 2030.
Also, PIF is a key player in Saudi Arabia’s economic transformation by focusing on 13 strategic sectors and creating 94 companies.
PIF has managed to create more than 644,000 direct and indirect job opportunities, supporting the government’s efforts in reducing the unemployment rate in the Kingdom among Saudi nationals to a historic record of 7.6 percent in Q1 2024 compared with 12.3 percent in 2016, with more than 2.2 million Saudi nationals joining the labor market.
It is worth noting that PIF has obtained long-term credit ratings from Moody’s Investors Service and Fitch Ratings, A1 and A+ respectively, underlining the creditworthiness of the fund, the quality of its investment portfolio and strong governance principles.
The strong credit ratings have enabled PIF to diversify its sources of funding, helping the fund to contribute to the realization of Saudi Vision 2030’s goals and objectives.
Finally, PIF’s financial reporting compliance with the International Financial Reporting Standards requirements and the publishing as per the listing requirements of the London Stock Exchange is clear evidence of the PIF’s strong financials and commitment to transparency.
• Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz.
