Saudi Arabia’s Public Investment Fund (PIF) has released its 2023 annual report, showcasing its remarkable progress across various strategic sectors in Saudi Arabia and globally. The report highlights PIF’s commitment to driving economic transformation in line with Saudi Vision 2030, solidifying its position as a leading global investor.
The report, adhering to GIPS international standards, demonstrates PIF’s strong performance in 2023. Assets under management (AUM) surged by 29 percent to SAR2.871 trillion ($765.16 billion) by year-end 2023, reaching $925 billion as of July 2024, SPA reported. Since its inception, PIF has achieved an average total shareholder return of 8.7 percent per year, demonstrating its commitment to delivering long-term, sustainable returns and economic transformation in Saudi Arabia.
Key initiatives and partnerships
PIF’s commitment to transparency and good governance is evident in the report. Total net cash returns for both Saudi Sector Development (SSD) and Saudi Equity Holdings (SEH) pools reached SAR42 billion ($11.2 billion) for the year, surpassing the SAR20 billion ($5.3 billion) target. The Saudi Real Estate and Infrastructure Development (SREID) pool experienced a 15 percent year-on-year increase, reaching SAR233 billion ($62 billion) in AUM.
Driving growth in key sectors
The inaugural Private Sector Forum, a significant milestone, provided local businesses with opportunities to align with and support PIF’s mandate. Key initiatives unveiled at the forum include MUSAHAMA, the local content growth program, and the Suppliers Development Program. These programs aim to enhance visibility for private sector companies seeking supplier and investment opportunities within PIF and its subsidiaries.
Expanding global investments
PIF continues to invest significantly in Saudi Arabia, supporting growth in key economic sectors. This includes the launch of Riyadh Air, Saudi Arabia’s new national carrier, and the Electric Vehicle Infrastructure Company (EVIQ) to accelerate the adoption of electric vehicles. PIF further supports the car manufacturing ecosystem through Tasaru Mobility Investment and has launched Lifera, a new pharmaceutical investment company, along with Al Balad Development Company and Ardara in the real estate sector.
Job creation and economic impact
Moreover, by year-end 2023, PIF had created over 730,000 direct and indirect jobs, reaching over 763,000 by Q1 2024.
PIF’s global investments have also expanded significantly. In 2023 alone, SAR586 billion ($156 billion) was invested internationally, representing a 14 percent year-over-year increase of SAR74 billion ($19.98 billion). PIF’s international investment portfolio further plays a crucial role in enhancing its global reach and developing capital over the long term. The focus is on impactful investments that generate significant returns over time by investing in future-oriented industries shaping the global economy, contributing to the localization of expertise, skills, and technologies in Saudi Arabia.
Read more: Saudi PIF affiliate invests $1.5 billion in EV maker Lucid Group
Securing foreign direct investment
Additionally, PIF has actively secured foreign direct investment, including a joint venture with Hyundai to establish a new factory in Saudi Arabia, a partnership with Pirelli to manufacture tires for domestic and export markets, and a joint venture with Baosteel to establish an integrated steel plate manufacturing complex.
Moreover, PIF has received a rating of A1 from Moody’s with a positive outlook and A+ from Fitch with a stable outlook.
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