PIF’s strong financials drive Saudi Arabia’s economic growth 
With the slogan “Invested in Better,” the Public Investment Fund’s 2023 annual report demonstrated the financial strength of the Kingdom’s sovereign fund as an economic and investment powerhouse both locally and internationally.
The report also showcased the fund’s progress against its 2021-2025 investment strategy and annual targets, evidenced by the significant growth achieved in its assets under management portfolio.
The report revealed that the fund’s assets under management have grown to SR2.87 trillion ($765 billion) in 2023, compared to SR2.23 trillion in 2022, an increase of 29 percent.
Assets under management in 2023 have been diversified, with international investments comprising 20 percent, local investments 79 percent, and the remaining 1 percent pertaining to receivables from other parties.
The fund has set ambitious goals within its strategy and Vision Realization Program 2021-2025 to increase the value of assets under management to SR4 trillion by 2025, compared to SR3.47 trillion in the first half of 2024.
PIF achieved a total shareholder return of 8.7 percent, demonstrating a significant increase compared to the 2-3 percent return before the fund was restructured in 2015.
Domestically, PIF has been a key driver in generating job opportunities in the Kingdom, creating over 730,000 direct and indirect jobs in 2023 and raising this figure to more than 1.1 million by the first half of this year.
PIF’s ranking as the sixth-largest sovereign wealth fund globally by the SWF Institute in 2023, and its jump from 71st to seventh place globally, will support the Kingdom’s efforts to diversify the economy.
PIF unveiled several giga-projects in 2023, including, but not limited to, the establishment of the Diriyah Co. as the fifth giga-project, Riyadh Air as a new national airline, and Lifera, an innovative investment company poised to transform Saudi Arabia into a premier hub for pharmaceutical manufacturing.
PIF’s strong financial performance has earned it inaugural credit ratings of A1 and A from global credit rating agencies Moody’s and Fitch, respectively. In addition, PIF’s Euro Medium-Term Note Program received an A rating from Fitch.
Also, PIF was ranked as the world’s most valuable sovereign wealth fund brand, with a value of $1.1 billion, according to a study conducted by Brand Finance. Its value is largely driven by high scores for the brand’s awareness, purpose, and commitment to growth, according to the report.
PIF was established in 1971 with the mandate to create new companies inside and outside Saudi Arabia. It was restructured in 2015 and shifted its reporting from the Ministry of Finance to the Council of Economic and Development Affairs.
The first PIF strategic investment program for 2018-2020 was launched in 2017 to identify targets and initiatives through which PIF could contribute to the Kingdom’s Vision 2030.
PIF’s second strategic investment program, 2021-2025, was launched in 2021 to maintain alignment with the updated Vision 2030 plans and targets.
Clearly, the strong financial performance of PIF in 2023 and beyond qualifies it to act as a catalyst for driving the Kingdom’s economic growth.
PIF’s ranking as the sixth-largest sovereign wealth fund globally by the SWF Institute in 2023, and its jump from 71st to seventh place globally, will support the Kingdom’s efforts to diversify the economy in line with Saudi Vision 2030.
Finally, PIF’s strong financial performance, as affirmed by reputable rating agencies such as Moody’s and Fitch, indicates that it will continue to play a major role in seizing domestic and international investment opportunities in line with its mandate.
• Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz
