Saudi Arabia’s PIF Climbs Global Sovereign Wealth Fund Rankings with Impressive Asset Growth
In a remarkable feat, Saudi Arabia’s Public Investment Fund (PIF) has made significant strides in the global ranking of sovereign wealth organizations, thanks to a staggering 55 percent increase in assets under management.
According to the US-based Sovereign Wealth Fund Institute, the value of PIF’s portfolio now stands at an impressive $925 billion, up from $595.6 billion in 2022. This remarkable growth has propelled the organization past Kuwait’s sovereign wealth fund, placing it just behind Abu Dhabi Investment Authority in the Gulf region.
PIF’s ascent was further fueled by a strategic move in March, where it increased its stake in Aramco by 8 percent, reaching approximately $328 billion. This significant investment now accounts for 37 percent of its portfolio and elevates PIF to fifth place in the global sovereign wealth funds rankings.
The potential for further growth lies in the government’s plan to release more shares of Aramco to the public, a move that is expected to boost PIF’s financial strength and credit rating as it aligns with the Vision 2030 objectives.
Global SWF reports emphasize the importance of PIF’s access to borrowing markets for achieving its goals. With an estimated total debt of around $36 billion, recent fundraising efforts have seen PIF secure $7 billion from two sales in the early months of 2024.
Expansion and Diversification Strategies in Full Swing
In its pursuit of becoming the world’s largest sovereign investor, PIF has been actively deploying capital across various sectors. In 2023, PIF invested $31.6 billion in 49 deals, marking a significant 33 percent increase from the previous year.
Strategic acquisitions, such as a 23.1 percent stake in Middle East Paper Co. and investments in the transportation sector through Riyadh Air and Saudia Technic, have bolstered PIF’s presence in key industries.
Furthermore, PIF’s upcoming acquisition of Saudi Iron and Steel Co. (Hadeed) and collaboration with South Korea’s POSCO for green hydrogen production demonstrate its commitment to fostering a low-carbon steel sector and sustainable practices.
With an ambitious goal of managing $2 trillion in assets by 2030, with a focus on domestic holdings, PIF is poised for continued growth and influence in the global financial landscape.
Regional Dynamics and Top Performers
While PIF’s ascent is impressive, the UAE’s Abu Dhabi Investment Authority (ADIA) maintains its stronghold in the region with assets under management totaling $993 billion, a substantial increase from $790 billion in 2022.
The Kuwait Investment Authority and Qatar Investment Authority also showcased notable growth, with assets totaling $846 billion and $510 billion, respectively, in 2024.
Overall, Middle Eastern wealth funds oversee a staggering $4.8 trillion in financial capital, with Gulf funds playing a significant role in global investments.
Investment Corp. of Dubai, Abu Dhabi’s Mubadala, and Developmental Holding Co. (ADQ) are among the top performers in the region, further highlighting the economic prowess and strategic investments of Gulf states.
Saudi Arabia’s National Development Fund, Emirates Investment Authority, and Dubai World also play crucial roles in the region’s economic landscape, showcasing a diverse and dynamic investment environment.