Saudi Arabia's PIF assets rise 18% to $1.15tn as portfolio firms drive growth

01/07/2025 05:40 AST

Saudi Arabia's Public Investment Fund boosted its total assets to SR4.32 trillion ($1.15 trillion) by the end of 2024, an 18 percent increase compared to the previous year, according to a disclosure filed with the London Stock Exchange.

The sovereign wealth fund reported gross revenues of SR413 billion for 2024, reflecting a 25 percent year-on-year rise. This growth was fueled by solid performance across several portfolio companies, including Savvy, Ma'aden, stc, Saudi National Bank, AviLease, and Gulf International Bank, as well as dividend income from Saudi Aramco.

PIF, often described as the financial engine of Saudi Arabia, plays a central role in advancing the Kingdom's Vision 2030 goals to diversify the economy and reduce dependency on oil income.

"Long-term projects, that are beginning to mature, are also now generating significantly more revenue," the disclosure document stated.

Despite global macroeconomic challenges such as high interest rates, inflationary pressure, and select asset impairments, the fund reported a net profit of SR26 billion in 2024.

The filing clarified that the impairments were "primarily related to changes to operational plans and increases in budgeted costs and represent less than a 2 percent reduction in total assets."

PIF's cash reserves held steady at SR316 billion, while loans and borrowings rose modestly to SR570 billion, reflecting continued diversification of its funding sources via international capital markets.

In 2024, the fund issued $2 billion in dollar-denominated sukuk and launched its first-ever sterling bond worth £650 million ($825.5 million). It also refinanced a $15 billion revolving credit facility, underlining market confidence in its creditworthiness and long-term investment outlook.

PIF's debt ratio remained unchanged at 13 percent by the end of the year, the disclosure noted.

"Over 2024, PIF continued to advance its position as one of the world's most impactful investors, while driving economic transformation in Saudi Arabia," the document added.

It highlighted strategic progress in sectors such as leisure and tourism, industrial capabilities, capital markets, and the development of new industries.

Among standout performers, AviLease recorded a 350 percent surge in net profit to SR228 million and a 306 percent rise in revenue to SR2.1 billion. The aircraft leasing company expanded its fleet to 189 aircraft, comprising 163 owned, 22 managed, and four on order.

Meanwhile, Alat - another PIF-backed firm - invested SR401 million to establish an AI-driven robotics manufacturing facility in the Kingdom through a joint venture with SoftBank Robotics.

Arab News