INVESTMENT

WEALTH FUND STEERS SAUDI ECONOMY TOWARDS SUSTAINABILITY

The Public Investment Fund (PIF) has reported a sharp rise in assets under management (AUMs) and robust financial results for 2024, underscoring its central role in the kingdom’s strategy to diversify away from oil revenues and position itself as one of the world’s most influential sovereign wealth funds. 

The USD 913 billion fund, which is at the heart of Vision 2030 programme, announced that assets under management (AuM) rose 19% year on year, while total revenue climbed 25%. Since 2017, PIF has generated an average annual total portfolio return of 7.2%. Liquidity remained broadly unchanged over the year, reflecting what executives described as a deliberate balance between capital deployment and financial resilience. It also reported that 2024 was an inflection point in PIF’s evolution.

“PIF entered a new era of performance and innovation in 2024 – one defined by the integration of artificial intelligence (AI), automation and advanced digital capabilities across its operations,” said Yasir Bin Othman Al-Rumayyan, governor of the PIF, in the 2024 annual report, released in August.

STRATEGIC INVESTING

The sovereign wealth fund has poured billions into priority sectors at  home and strategic assets abroad, as well as contributed USD 243 billion in cumulative real non-oil GDP between 2021 and 2024 – equivalent to about a tenth of the kingdom’s non-oil economy.

“The annual report for 2024 is marked by significant growth underpinned by solid financial health, as PIF further established its position as one of the world’s largest sovereign wealth funds,” said Yasir A. Al Salman, PIF’s chief financial offcer. 

Capital deployment across priority sectors reached USD 56.8 billion in 2024, bringing cumulative investment since the beginning of 2021 to more than USD 171 billion. PIF continues to innovate to deliver on its mandate and drive economic transformation, Al Salman added.

The fund has either founded or taken controlling stakes in 103 companies since 2017, bringing the total number of portfolio companies to 225 by the end of 2024. These companies range from national champions in energy and mining to ventures in sports, entertainment and advanced manufacturing. The investments, executives said, are designed to spur localisation, expand technical capabilities and stimulate innovation within Saudi Arabia. 

PIF has also expanded its technological footprint. Last year it shifted from digital transformation to digital leadership, completing 58 digital projects, launching 15 new applications and automating 477 processes – many involving artificial intelligence and advanced analytics.

GLOBAL PLANS

While domestic diversification remains the cornerstone of PIF’s mandate, international investments continued to grow in 2024. The fund deployed capital across public equities, private assets and infrastructure in markets from the United States to Asia, often through strategic partnerships with global asset managers, corporates and technology innovators. Last year, PIF acquired a 15% stake in FGP TopCo, the holding company of Heathrow Airport, one of the world’s busiest international hubs. PIF also took a significant minority stake in Rocco Forte Hotels and landmark properties across London, Rome, Munich and other key commercial centres. 

These investments, PIF said, are intended both to deliver long-term returns and to give the kingdom access to emerging technologies and industries shaping the global economy.

Funding has been diversified alongside assets. In 2024, PIF raised USD 9.83 billion in public debt and USD 7 billion in private debt markets. Themoves contributed to what ratings agencies described as an increasingly sophisticated capital structure: Moody’s upgraded the fund from A1 to Aa3 with a stable outlook, while Fitch affrmed its A+ rating.

The governance framework has also drawn international recognition. PIF scored 96% in the Global SWF’s 2024 Governance, Sustainability and Resilience Scoreboard, rising to a perfect 100% in early 2025, tying for first place among 200 sovereign investors worldwide. 

DRIVING THE DIVERSIFICATION AGENDA

PIF’s rapid expansion reflects both strong oil-driven fiscal surpluses in recent years and the urgency with which Riyadh is pursuing economic diversification. The fund is already among the biggest in the world, driving Saudi Arabia’s bold ambition in areas as diverse as gaming studios and electric vehicle makers.

“Throughout 2024, PIF continued to lead with long-term vision and purpose. PIF deepened its impact and continued to drive the economic transformation of Saudi Arabia, while generating sustainable returns,” said Maram Al Johani, PIF’s acting chief of sta and secretary general to the board. “PIF now represents 10% of the nation’s non-oil economy, with PIF’s cumulative real non-oil GDP contribution between 2021 and 2024 growing to USD 243 billion.”