Saudi Arabia's PIF Reports 60% Net Profit Decline in 2024

Saudi Arabia's Public Investment Fund (PIF) reported a significant 60% year-on-year decline in net profit for 2024, amounting to 25.8 billion Saudi riyals (approximately 6.9 billion U.S. dollars). The drop was attributed to high interest rates, inflation, and the devaluation of certain projects. The fund cited changes in operational plans and increased budget costs as the primary reasons for the devaluation.

The fund, which manages assets exceeding 1 trillion U.S. dollars, disclosed in its consolidated financial statements that its net profit for 2023 was 64.4 billion Saudi riyals. The comprehensive income statement revealed that the 138.1 billion Saudi riyals profit announced in July 2023 had turned into a 140 billion Saudi riyals loss by the end of the year. The comprehensive income statement includes unrealized gains and losses, as well as changes in the value of certain assets.

Despite the decline in net profit, the fund reported an 18% year-on-year increase in total assets, rising from 366.4 billion Saudi riyals to 432.1 billion Saudi riyals. The PIF is spearheading Saudi Arabia's ambitious economic transformation plan, aimed at reducing the country's reliance on oil revenues. The fund is also planning to issue a 7-year Islamic bond to raise 1.25 billion U.S. dollars in financing.