Saudi sovereign wealth fund holds SAR 3.5 trillion in assets
09/04/24
Saudi Arabia’s Public Investment Fund (PIF) has enjoyed a 55 percent increase in assets under management and is now valued at SAR 3.49 trillion (USD 925 billion).
According to figures from the US based industry specialist, the Sovereign Wealth Fund Institute (SWF), PIFs value has increased from SAR 2.23 trillion (USD 595.6 billion) in 2022. This climb was further bolstered by PIF’s recent increased 8 percent stake in Saudi Aramco worth approximately SAR 1.23 trillion (USD 328 billion). This move represents 37 percent of its portfolio and its value could grow further if the government releases further shares to the public.
In order to achieve its objectives, the Saudi sovereign fund’s ability to access borrowing markets is vital. Estimates by the SWF suggest PIF’s total debt stands at approximately SAR 135 billion (USD 36 billion), with recent fundraising of SAR 26.25 billion (USD 7 billion) from two sales earlier in 2024.
In its March report, the industry specialist added that PIF became the world’s largest sovereign investor in 2023, deploying SAR 118.5 billion (USD 31.6 billion) across 49 deals, a 33 percent increase from 2022. Specifically, in January this year, PIF acquired a 23 percent stake in the Middle East Paper Co. (Mepco) for SAR 522 million (USD 139.1 million), enhancing the companies growth and boosting its role as a regional provider of paper products for construction.
Additionally, the fund entered the transportation sector, launching Riyadh Air with a SAR 112.5 billion (USD 30 billion) investment in 2023 and investing in Saudia Technic for aviation services. Further plans expect to see PIF finalising the acquisition of the Saudi Iron and Steel Co., also known as Hadeed, from SABIC for SAR 12.38 billion (USD 3.3 billion).
PIF’s goal is to manage SAR 7.5 trillion (USD 2 trillion) in assets by 2030, with 83 percent in domestic holdings.
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