PIF: Saudi investment portfolio assets in real estate projects grew to SR 233 billion by the end of 2023

The Public Investment Fund revealed that the size of the assets of the investment portfolio in real estate projects and infrastructure development projects in Saudi Arabia witnessed a growth of 15% compared to the end of 2022, reaching 233 billion riyals. The total size of the assets in the international investment portfolio amounted to 586 billion Saudi riyals by the end of 2023, a growth of more than 14% compared to the previous year. The Global Strategic Investments Portfolio plays a key role in enhancing the Fund’s broad international portfolio and developing long-term capital with a focus on impactful investments that generate significant returns over time. The launch of the Fund’s Private Sector Platform in 2023 was a significant milestone in highlighting and enabling opportunities for local companies to align with and leverage PIF’s investments and activities. Several key initiatives have been launched through the platform, including the Fund’s Local Content Development Program “Musahama” and the Supplier Development Program, providing private sector companies with better insight into supplier and investment opportunities with the Public Investment Fund and its portfolio companies. The Fund applies a solid financing strategy based on four clear sources of financing: increasing capital through the state, loans and debt instruments, retained returns from investments, and transferring assets from the state to the Fund, in order to ensure its ability to finance its activities in the long term and achieve the objectives of its long-term financing strategy. In order to enhance the governance system applied by the Public Investment Fund, the Fund announced in the last quarter of 2023 its voluntary compliance with the Global Investment Performance Standards (GIPS®) from the CFA Institute, confirming its commitment to the best global practices in reporting investment performance. The Fund has an A1 rating with a positive outlook from Moody’s and an A+ rating with a stable outlook from Fitch Ratings. The Public Investment Fund announced the “Diriyah Project” as the fifth major project of the fund. The fund also established and launched 23 local companies, bringing the total number of companies it has established since 2017 to 95 companies. The package of new companies established by the fund during 2023 aimed to empower promising sectors, as it launched “Riyadh Air” as a new national air carrier with international standards to support the growth of the tourism and transportation sectors.