The Public Investment Fund (PIF) has seen exponential growth in its total revenues, soaring by over 100 percent in the year 2023 to reach SR331 billion ($88.5 billion). This significant increase was supported by the growth in the market value of the fund’s investment portfolio. The financial statements for the year 2023, published in accordance with London Stock Exchange requirements, revealed that the value of PIF assets increased by 28 percent, reaching SR3.7 trillion ($990 billion) by the end of the year. This increase was boosted by various acquisitions and the transfer of a percentage of Saudi Aramco shares to a company in the PIF’s portfolio.
During the year 2023, the Public Investment Fund achieved a net profit of 74 billion ($19.7 billion), with overall net income, including comprehensive income, reaching SR138 billion ($36.7 billion). This strong financial and investment performance over the year supported the fund’s success. The year 2023 also saw PIF strengthening its strategy to diversify its sources of financing through debt instruments. As a result, the fund collected an additional SR45 billion ($11.9 billion) during the period. Some of the fund’s portfolio companies also secured financing for various acquisitions, utilizing loans, debt instruments, profits from investments, and capital injections from the government and government assets transferred to the fund.
One of the highlights of PIF’s financial success in 2023 was the increase in profits after accounting for zakat and taxes, which reached SR64 billion ($17 billion) compared to losses in the previous year. General reserves and retained earnings from investments also saw a substantial 21 percent increase to SR707 billion ($188 billion) compared to the previous year. The fund attributed the rise in profits, revenues, and net income to various factors, particularly in non-investment activities. The non-investment portfolio of the fund saw a 15 percent increase to SR238 billion ($63.4 billion) in 2023, with growth observed across all sectors, especially in financial services and communications.
While the non-investment portfolio saw growth, it was somewhat impacted by the decline in returns from the metals and mining sector, attributed to global market conditions. However, the revenues from the fund’s investment portfolio significantly increased in 2023 compared to the previous year, with profits totaling SR98 billion. This marked a substantial turnaround from the losses recorded in 2022, where the portfolio reported losses of SR41 billion. Notably, SoftBank emerged as a source of profits after facing market value losses in the previous year, contributing to the positive results in 2023.
The financial results for 2023 affirm the strength of PIF’s financial position and investment performance. The fund received a favorable rating of “A1” with a positive outlook from Moody’s and an “A+” with a stable outlook from Fitch. This recognition highlights the fund’s resilience and success in navigating the challenges of the global market and achieving significant growth in revenues and profits. The continued strategic investments and diversification of funding sources have positioned the Public Investment Fund as a key player in the global investment landscape, with a strong outlook for future growth and sustainability.
