PIF increases its investments in securities and derivatives by 39% to 1.75 trillion riyals during 2023

The Public Investment Fund revealed that its investments in securities accounted for about 48% of its total assets, after recording a significant jump by the end of 2023, reaching 39%, indicating the strengthening of the fund’s portfolio, which has become one of the 6 largest sovereign funds in the world.

According to the fund’s consolidated financial statements, which were revealed in the annual report for the year 2023, the fund’s investments in securities and financial derivatives amounted to about 1.75 trillion riyals, compared to about 1.27 trillion riyals at the end of 2022, meaning that it added about 480 billion riyals to the portfolio in one year, an increase of 39%.

The Fund’s assets increased to about 3.66 trillion riyals by the end of 2023, an increase of 26% compared to 2022, an increase of about 740 billion riyals, 65% of which was in the Fund’s investments in securities and financial derivatives.

According to the previously published financial statements of the Fund, the Fund’s investments in the stocks and investment funds sector accounted for about 81% of the Fund’s investments in securities and financial derivatives of various types, with a value of about 1.4 trillion riyals, an increase of 485.5 billion riyals compared to 2022, which recorded about 910 billion riyals.

The statements showed the geographical distribution of the Fund’s investments in securities, as the Middle East and North Africa region accounted for about 59%, with a value of about one trillion riyals, after jumping from 654.6 billion riyals at the end of 2022, an increase of 398 billion riyals, an increase of 65%.

The United States of America came in second place in the region where the fund invested in securities, with a value of 426.6 billion riyals, representing 25% of the fund’s investments in securities, witnessing an increase from 304.8 billion riyals in 2022, i.e. an increase of 121.8 billion riyals, or 40%. Europe came in third place in the region where the fund invested in securities, with a value of 166.3 billion riyals, representing 10% of the fund’s investments in securities, witnessing an increase from 161.3 billion riyals in 2022, i.e. an increase of 5 billion riyals, or 3%. The fund’s investments in the sukuk sector represented about 16% of its investments in securities, with a value of about 275.4 billion riyals, after increasing from 250.9 billion riyals in 2022, i.e. an increase of about 24.5 billion riyals, or 10%. The Fund’s investments in government sukuk accounted for the largest share, amounting to about 217.7 billion riyals, representing 87% of investments in sukuk by the end of 2023, after rising from 183.4 billion riyals in 2022, an increase of 34.3 billion riyals over 2022. The Fund’s investments in sukuk issued by banks, financial institutions and others accounted for about 13%.