The assets managed by Saudi Arabia's Public Investment Fund (PIF) have risen to 2.87 trillion riyals ($766 billion) by the end of last year. This represents a diverse portfolio, with 77% of assets held domestically and 20% internationally. According to the financial analysis unit of 'Aleqt.com,' this marks a 28.5% annual growth—the highest rate since the fund's restructuring in 2016 under the leadership of Crown Prince Mohammed bin Salman.

This growth can be attributed to the robust financial and investment performance of PIF, in addition to governmental assets allocated to the fund. Notably, a portion of Aramco's shares was transferred to PIF's portfolio. Since its restructuring, PIF's assets have quadrupled, with a target to reach 4 trillion riyals by 2025. The fund has been steadfast in its mission to maximize asset value, launch new sectors, localize advanced technologies and knowledge, and build strategic economic partnerships, enhancing its role in diversifying and deepening Saudi Arabia's economic influence regionally and globally.

By the end of the last year, the securities portfolio had grown by 39% to 1.73 trillion riyals, accounting for approximately 47% of the total fund assets amounting to 3.66 trillion riyals. Equity and investment funds constituted 81% of the securities portfolio, with an additional 16% invested in sukuk, predominantly government-issued sukuk valued at approximately 217.7 billion riyals. Investments spanned key regions, with 59% in the Middle East and North Africa, followed by a 25% share in the United States, and 9% in Europe. Other significant investments were recorded in countries like India, China, Japan, and Canada.

The PIF reported a net profit of 74 billion riyals ($19.7 billion) in 2023, reflecting its strong financial and investment performance. The fund's total revenues surged by over 100%, from 165 billion riyals ($44 billion) to 331 billion riyals ($88.5 billion). The fund's assets also increased by 28%, reaching 3.7 trillion riyals ($990 billion), driven by several acquisitions and the transfer of a portion of Aramco's shares into its portfolio.

Additionally, PIF has enhanced its strategy to diversify funding sources through debt instruments, raising 45 billion riyals ($11.9 billion) over the year. Various portfolio companies also secured financing for numerous acquisitions. The fund utilizes a diverse array of financing sources, including loans, debt instruments, investment returns, government capital injections, and government assets transferred to it.

Public investment initiatives were underpinned by significant improvements in non-investment portfolio activities, which grew by 15% to 238 billion riyals ($63.4 billion) by 2023, reflecting gains across all sectors, particularly financial services and telecommunications. However, the mining sector saw some decline due to falling global metal and raw material prices after a notable increase in 2022.

Looking at broader financial performance, the PIF's investment portfolio revenues significantly outperformed the previous year, with 2023 seeing a net revenue of 98 billion riyals, an increase of 135 billion riyals ($36 billion) from the previous year's losses of 41 billion riyals. These positive results were partly due to the recovery of entities such as SoftBank, which had experienced market value losses the preceding year.

A crucial aspect of PIF's global standing is its commitment to governance, sustainability, and resilience. The Global SWF report ranked PIF second globally and first in the Middle East among 100 sovereign wealth funds for its adherence to governance and sustainability practices. The PIF was lauded for its efforts in sustainability, transparency, ethical practices, and robust governance, highlighting its role as a responsible investor.

Hawazen Nassif, the acting director of sustainability at PIF, emphasized the fund's commitment to serving as a model of transparency, sustainability, and ethical work practices. She iterated that these principles are pivotal for achieving sustainable growth, as evidenced by PIF's impressive standings in the GSR report. The fund has also been proactive in addressing climate change by committing to achieving net zero emissions by 2050, in alignment with Saudi Arabia's sustainability objectives.

Summarizing its financial prowess, the PIF received an A1 rating from Moody's with a positive outlook and an A+ rating from Fitch with a stable outlook. These ratings reflect the fund's vigorous financial and investment performance and its substantial role in driving Saudi Arabia's economic transformation in line with Vision 2030.