Saudi Arabia's PIF Targets 17% AUM Growth by Year-End

Saudi Arabia's Public Investment Fund (PIF) has announced ambitious plans to increase its assets under management (AUM) by 17% by the end of this year, aiming to reach 400 billion Saudi riyals (approximately 10,660 billion USD). This target follows a 19% year-on-year growth in AUM, reaching 342.4 billion Saudi riyals (approximately 9,130 billion USD) by the end of 2024. The fund's total revenue for the year grew by 25%, with a strong and stable cash balance.

The majority of PIF's assets, 80%, are invested domestically, while 17% are allocated to overseas investments, and the remaining assets are in government bonds. The proportion of overseas investments has been decreasing for the past two years, from 23% in 2022 and 21% in 2023, indicating a strategic shift towards domestic investments to support Saudi Arabia's economic transformation.

PIF's investment portfolio is diversified across various sectors, with 32.3% in energy, 13.8% in real estate, and 8.7% in information technology. The fund's largest holding is a 16% stake in Saudi Aramco, valued at nearly 2,500 billion USD. This diversification reflects PIF's commitment to supporting Saudi Arabia's economic diversification efforts.

In addition to its financial performance, PIF has made significant strides in integrating artificial intelligence (AI) and automation into its operations. The fund has completed 58 digital projects, launched 15 new applications, and automated over 477 processes, enhancing its operational efficiency and strategic decision-making capabilities. PIF has also developed an AI-driven valuation platform to improve the accuracy and speed of private market investment assessments, as well as a large language model for real-time investment reporting and AI tools for asset management analysis and portfolio optimization.

PIF's focus on digital transformation aligns with Saudi Arabia's national strategy to integrate advanced technologies into its economy, reducing dependence on oil and redefining the country's future through computational power and technological innovation. The fund's efforts to enhance its technological capabilities, promote localization, and encourage innovation are expected to drive further growth and development in Saudi Arabia's strategic economic sectors.

PIF's commitment to sustainable returns and economic transformation is evident in its 2025 target of achieving an AUM of 400 billion Saudi riyals, with 24% of its assets coming from overseas investments. The fund also plans to invest at least 150 billion Saudi riyals domestically, further supporting Saudi Arabia's economic diversification and growth. PIF's investment portfolio, which includes 225 companies with 103 founded by the fund, reflects its focus on driving progress and innovation in the Saudi economy.

PIF's financial stability and strong performance have been recognized by international credit rating agencies. Moody's upgraded PIF's credit rating from A1 to Aa3 with a stable outlook, while Fitch maintained its A+ rating, affirming the fund's financial strength and stability. PIF's continued investment in domestic and international markets, along with its focus on technological innovation and economic diversification, positions it as a key player in Saudi Arabia's economic transformation and growth.