Saudi Arabia's PIF Assets Surge 18% to $1.15 Trillion

The Public Investment Fund (PIF) of Saudi Arabia has reported a significant increase in its total assets, reaching 4.32 trillion Saudi riyals, or approximately 1.15 trillion US dollars, as of 2024. This marks an 18% year-on-year growth from the previous year. The fund's asset size was previously reported to be 9413 billion Saudi riyals at the end of 2024, according to the "Vision 2030" annual report released in April by Saudi Arabia. This substantial growth in PIF's assets underscores the fund's strategic investments and its role in driving the Saudi economy towards diversification and modernization. The increase in assets is a testament to the fund's effective management and its ability to capitalize on global investment opportunities. The PIF's growth is particularly noteworthy given the broader economic challenges faced by many nations, highlighting Saudi Arabia's commitment to economic reform and development. The fund's expansion is expected to further support the kingdom's ambitious "Vision 2030" initiative, which aims to reduce the country's dependence on oil and foster a more diversified and sustainable economy.

Despite the impressive growth in assets, the PIF reported a significant decline in net profit for 2024. The fund's net profit for the year was 258 billion Saudi riyals, or approximately 68 billion US dollars, representing a nearly 60% decrease from the previous year. This decline in profitability can be attributed to several factors, including adjustments to operational plans and increased budget costs, which led to asset depreciation. Additionally, the fund's total costs for the year rose by 24%, reaching 1892 billion Saudi riyals, or approximately 504 billion US dollars. These costs included increased sales and distribution expenses, as well as higher management fees. The rise in costs, coupled with the asset depreciation, contributed to the overall decrease in net profit.

The PIF's total revenue for 2024 reached 4134 billion Saudi riyals, or approximately 1102 billion US dollars, marking a 24.7% increase from the previous year. This revenue growth was primarily driven by the strong performance of the fund's portfolio companies, including Saudi Mining Company, Saudi National Bank, Saudi Telecom Company, and aircraft leasing company AviLease. Additionally, the fund received significant dividend income from Saudi Aramco. The robust revenue growth, despite the challenges faced, highlights the PIF's ability to generate income from its diverse investment portfolio.

As of the end of 2024, the PIF maintained a stable cash reserve of 3160 billion Saudi riyals, or approximately 842 billion US dollars. The fund's loans and borrowings saw a slight increase, reaching 5700 billion Saudi riyals, or approximately 1520 billion US dollars. During the year, the PIF issued 20 billion US dollars in dollar-denominated Islamic bonds and launched its first 6.5 billion pound sterling bond. The fund's debt ratio remained unchanged at 13%. The stable cash reserve and prudent debt management reflect the PIF's commitment to financial stability and sustainability.

As the core implementer of the "Vision 2030" initiative, the PIF plays a crucial role in driving the diversification of the Saudi economy. According to the plan, the PIF aims to increase its asset management scale to 2.67 trillion US dollars by 2030. This ambitious goal underscores the fund's strategic importance in achieving the kingdom's economic objectives. The PIF's growth and success are expected to further support the implementation of "Vision 2030," contributing to the development of a more diversified and sustainable economy in Saudi Arabia.