Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), reported a significant turnaround in its financial performance in 2023. According to the latest regulatory filing, the fund swung to a profit of SAR138.1 billion ($36.81 billion) in 2023, after posting a loss of $15.6 billion a year earlier.
Revenues more than double in 2023
The fund’s total revenues more than doubled to SAR331 billion ($88.22 billion) in 2023, up from $44 billion in the previous year. This increase was driven by improvements in both investment and non-investment activities across various sectors, including banking, telecommunications, and gaming. Additionally, the fund saw a rise in dividend income.
PIF’s role in Saudi’s economic transformation
With around $925 billion in assets under management, the PIF is a key vehicle for Crown Prince Mohammed bin Salman’s ambitious “Vision 2030” economic transformation plan. The plan aims to wean the Saudi economy off its heavy reliance on oil by channeling substantial investments through the PIF into diverse sectors, including the development of NEOM – a massive urban and industrial project along the Red Sea coast.
Read more: Saudi Arabia’s Crown Prince transfers another 8 percent of Aramco shares to PIF
The PIF’s funding sources include retained earnings from investments, capital injections from the government, the transfer of government assets to the fund, as well as various loans and debt instruments.
PIF announces successful sterling bond offering
Last month, PIF announced the successful pricing of its inaugural sterling-denominated bonds offering with a total of GBP650 million ($831 million) under its existing Euro Medium-Term Note program. The offering comprises two tranches and was more than six times oversubscribed, reflecting strong demand from investors, a testament to PIF’s strong credit profile and financial stability.
PIF’s sterling-denominated bond offering included a GBP300 million tranche with a 5-year coupon and a GBP350 million tranche with a 15-year coupon.
This issuance falls under PIF’s strategy to continuously diversify its funding through multiple sources. In addition to loans and debt instruments, Saudi Arabia’s wealth fund uses other funding sources, including retained earnings from investments, capital injections from the government, and government assets transferred to PIF.
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