Saudi PIF Assets Rise 18% to 4.32 Trillion Riyals by End of 2024

The Public Investment Fund (PIF) of Saudi Arabia saw its assets increase by 18% to 4.32 trillion riyals by the end of 2024, according to the fund’s consolidated annual financial statements, which were disclosed on the London Stock Exchange. The PIF is obligated to publish these statements to meet continuous disclosure requirements for its debt instrument issuances on the London Stock Exchange. The fund plans to release its full 2024 annual report later this year, detailing its performance and achievements for the year.

Key financial indicators for the PIF include a 25% rise in revenues, reaching 413 billion riyals, compared to 331 billion riyals in the previous year. This increase is primarily attributed to higher revenues from several of the fund’s companies, including Savvy Games Group, Saudi Arabian Mining Company (Ma’aden), stc (Saudi Telecom Company), Saudi National Bank, aircraft leasing company AviLease, and Gulf International Bank, in addition to dividends from Saudi Aramco.

Furthermore, some major projects began generating increasing revenues compared to the previous year. The PIF achieved a net profit of 26 billion riyals, continuing to deliver stable returns on its investments.

Net profit was impacted by several factors, including global economic challenges such as rising interest rates and inflation, as well as impairment losses related to certain projects due to changes in operational plans and increased estimated costs. These losses represent less than 2% of total assets.

The fund maintained stable cash levels at 316 billion riyals, preserving a strong liquidity position. The value of loans and facilities for the group slightly increased to 570 billion riyals, as the PIF and its subsidiaries continued to diversify funding sources through successful deals in international capital markets.

The PIF also issued $2 billion in U.S. dollar-denominated sukuk and launched its first sterling-denominated bond issuance worth 650 million pounds. It also refinanced a $15 billion revolving credit facility, reflecting strong confidence in its credit record and long-term strategy.

Additionally, some PIF subsidiaries issued debt in global and local markets to diversify their funding resources. The PIF’s debt-to-asset ratio (total loans and facilities against total assets) remained stable at 13%.

During 2024, key developments included significant progress in expanding the entertainment and tourism sectors, enhancing the Kingdom’s industrial capabilities, continuing to develop the local economy’s growth potential, advancing Saudi financial markets, and launching new sectors. The successful ecosystem of PIF companies continues to grow and expand.

Red Sea International strengthened its portfolio by opening more new hotels, including St. Regis Red Sea Resort, Nujuma, a Ritz-Carlton Reserve.

The PIF also launched Adeera, a hotel management company, to manage and operate a new generation of Saudi hotel brands. Several new projects were launched in Diriyah, including new cultural and heritage areas, and the housing sector saw significant growth with the launch of several residential projects by well-known brands in 2024. The first voyages of AROYA Cruises, a subsidiary of Cruise Saudi, were operated, marking a pioneering achievement for the growing cruise sector in Saudi Arabia.

Riyadh Air continued its progress towards the expected launch of its commercial operations in 2025, aiming to connect the Kingdom to 100 global destinations through a series of strategic global partnerships with GE Aerospace, IBM, Artefact, and Sabre.

The PIF invests in and develops key infrastructure to contribute to boosting economic growth in the Kingdom. Its investments cover various infrastructure areas, from the telecommunications sector to employee housing. The PIF signed an agreement with stc Group to merge telecommunications tower assets, forming the largest telecommunications tower company in the region.

In the last quarter of 2024, the Smart Accommodation for Residential Complexes Company (SARCC) is expected to meet the growing demand for employee housing solutions.

Enhancing Financial Market Development

The Saudi Exchange Group launched the TASI 50 index as a new market index, reflecting the performance of the 50 largest liquidity companies listed on the Saudi financial market. This launch increases market transparency and enhances the Kingdom’s position as a leading financial hub in the region. The PIF contributed to accelerating the development of financial markets in the Kingdom through a strategic partnership with BlackRock to establish a new multi-asset investment management platform.

Investing in Modern Technologies and AI Infrastructure

Alat company was launched in early 2024 to develop manufacturing capabilities in strategic sectors, including semiconductors, smart devices, robotics, AI infrastructure, and next-generation electric power technologies. The Saudi Company for Artificial Intelligence (SCAI) strengthened its role in 2024 as a leading company in applied AI solutions, launching “Sport Native,” an AI-powered solutions package for the sports sector.

The PIF contributed to enhancing Saudi Arabia’s leadership in artificial intelligence through a strategic partnership with Google Cloud to establish a new global AI centre in Dammam. The PIF also established NEO Space Group (NSG) to lead the commercial satellite and geospatial data industries in Saudi Arabia.

The PIF became the first institution in the GCC to adopt an AI-powered valuation platform for private market investments, launched a large language model (LLM) for investment reporting, and deployed AI tools for asset manager analytics.

The PIF ecosystem and its portfolio companies continue to grow and expand, and the growth in retained earnings enhances the potential for launching new investments. AviLease announced a 382% year-on-year increase in net profit to 228 million Saudi riyals, and a more than 350% year-on-year increase in revenues to 2.1 billion riyals, with its fleet expanding to 189 aircraft, including 163 owned aircraft and 22 managed aircraft, along with 4 committed aircraft.

ROSHN launched thousands of new residential units in Makkah, Jeddah, and Dhahran.

Alat company invested 401 million Saudi riyals to develop an AI-powered robotics manufacturing facility in the Kingdom through its joint venture with SoftBank Group.