The Public Investment Fund (PIF) has reported impressive revenue growth of over 100 percent in 2023, reaching SR331 billion ($88.5 billion), up from SR165 billion ($44 billion) in 2022. This jump in revenues was supported by the increase in the market value of its investment portfolio. The fund’s total assets also saw a significant rise, increasing by 28 percent to SR3.7 trillion ($990 billion) by the end of 2023. This growth was attributed to a number of acquisitions and the transfer of Saudi Aramco shares to a company in the PIF’s portfolio.
During the year 2023, the PIF achieved a net profit of SR74 billion ($19.7 billion), with the fund’s net income, including comprehensive income, reaching SR138 billion ($36.7 billion). The sovereign wealth fund has strengthened its strategy to diversify its sources of financing through debt instruments, collecting an additional SR45 billion ($11.9 billion) during the period. Some of the fund’s portfolio companies also secured financing for acquisitions, utilizing various sources such as loans, debt instruments, profits from investments, government capital injections, and government assets transferred to it.
After calculating zakat and taxes, PIF’s profits rose to SR64 billion ($17 billion) in 2023, compared to losses of SR17 billion ($4.5 billion) in 2022. General reserves and retained earnings from investments increased by 21 percent, reaching SR707 billion ($188 billion) for the year 2023. The non-investment portfolio of the fund also saw growth of 15 percent, reaching SR238 billion ($63.4 billion) in 2023, with sectors like financial services and communications experiencing significant expansion.
While the non-investment portfolio was impacted by a decline in returns from the metals and mining sector due to global price decreases, the revenues of PIF’s investment portfolio saw a significant increase in 2023. The portfolio recorded SR98 billion in revenues during the year, marking an increase of SR135 billion ($36 billion) compared to the results of 2022, where it incurred losses of SR41 billion. These positive results were driven by SoftBank’s transformation into a profitable asset after facing losses in market value the previous year.
The financial results of PIF for 2023 underscore its financial strength and investment performance. The fund received a rating of “A1” by Moody’s with a positive outlook and a rating of “A+” by Fitch with a stable outlook. The fund continues to focus on diversifying its revenue streams and expanding its investment portfolio to maintain its growth trajectory and capitalize on opportunities in various sectors. With solid financials and strategic initiatives in place, PIF is well-positioned to continue its upward trajectory and contribute to the economic growth of Saudi Arabia.
