Saudi Arabia’s PIF Ranks Second Globally in Sovereign Wealth Bodies
In a recent release, Saudi Arabia’s Public Investment Fund (PIF) has secured its position as the top sovereign wealth fund in the Middle East and has climbed five spots to tie for second place in a ranking of 100 sovereign wealth bodies.
The 2024 Governance, Sustainability, and Resilience Scoreboard, published by Global SWF, reveals that the Kingdom’s fund has significantly improved its assessment score to an impressive 96 percent from 92 percent the previous year.
PIF has also claimed the top global position for deploying fresh capital over the past five and a half years.
Leading the Way in Governance and Sustainability
The GSR evaluation tool considers key factors such as transparency, accountability, impact investing, responsible investing, legitimacy, and long-term sustainability. The scoring system comprises 25 elements that are answered with a binary response, converted into percentage points, and given equal weight.
Chad Richard, head of strategy development and innovation at PIF, emphasized that the fund’s status as a global leader in impactful and responsible investing with world-class governance and sustainability practices has been reinforced by the report.
PIF has been at the forefront of promoting the global clean energy transition, conducting the largest-ever voluntary carbon credit auctions worldwide and pioneering the issuance of green bonds, including the first-ever century green bond.
Investing in a Cleaner and More Sustainable Future
PIF’s commitment to investing in a cleaner and more eco-conscious economy and fostering sustainable growth domestically and globally is evident through its efforts to achieve net zero emissions by 2050.
Despite facing a challenging environment of volatility and uncertainty, state-owned investors have seen significant gains in global equities, with sovereign wealth funds from oil-rich economies benefiting from high oil prices.
Middle Eastern Funds Leading in Sustainability Rankings
Middle Eastern sovereign wealth funds have shown remarkable improvement in global sustainability rankings, with the PIF leading the charge and significantly increasing its score over the years.
State-owned investors have achieved record-high assets under management, reflecting robust financial performance and growth beyond previous levels.
The push for sustainability goals at the organizational level is influencing investment preferences, with a shift towards green assets such as renewable energy over black assets like oil and gas.
Driving Economic Transformation and Growth
PIF plays a crucial role in achieving Saudi Arabia’s Vision 2030 by fostering private sector growth, expanding the industrial base, creating employment opportunities, enhancing women’s participation in the workforce, and attracting foreign direct investment.
The fund’s strong financial results for 2023, with revenues reaching SR331 billion ($88.3 billion), underscore its robust financial health and consistent performance in the global market.
With an A1 rating from Moody’s and an A+ rating from Fitch, PIF’s financial standing and performance continue to receive positive recognition.