Saudi PIF assets surge, driving economic diversification and market growth.

According to the latest annual report on Saudi Arabia's "Vision 2030" strategy released in 2024, the Public Investment Fund (PIF) of Saudi Arabia has achieved an astounding 390% growth in asset size since the strategy was launched in 2016. The report shows that PIF's assets surged from $190 billion in 2016 to $941.3 billion in 2024, with an annual compound growth rate of 22%.

On this basis, PIF has raised its 2030 asset management target from an initial $1.87 trillion to $2.67 trillion. This adjustment reflects PIF's critical role in Saudi Arabia's economic transformation, particularly in driving economic diversification and infrastructure development.

As the core implementer of "Vision 2030," PIF's investment strategy is becoming increasingly diversified, encompassing several strategic sectors including culture and tourism, technology, aerospace, logistics, and infrastructure. The report notes that local investments account for 40% of PIF's portfolio, including numerous mega-projects and local businesses. Simultaneously, PIF is actively pursuing global investments across various high-growth potential fields.

PIF's investment outcomes have been remarkable, significantly boosting the activity of Saudi Arabia's private sector and creating a vast number of jobs. As of 2024, projects supported by PIF have created over 1.1 million jobs in Saudi Arabia. Additionally, the number of companies established with PIF's support has risen to 93, covering 13 strategic sectors.

From 2021 to the third quarter of 2024, PIF attracted over $37.33 billion in private sector investments, and through the Private Sector Hub platform, over 200 investment opportunities were published, totaling $10.67 billion in investments.

To support these strategic investments, PIF has made significant adjustments to its financial structure. In 2024, PIF received an 8% stake in Saudi Aramco, reducing the government's direct holdings in Saudi Aramco to 82.186%. In the same year, PIF also secured a $15 billion syndicated loan in collaboration with 23 international financial institutions, further enhancing liquidity and flexibility.

In terms of capital markets, PIF's efforts have also yielded significant returns. The number of listed companies in the Saudi Exchange (Tadawul) increased from 205 in 2019 to 353 in 2024, while foreign investor holdings grew from $52.8 billion in 2019 to $112.8 billion in 2024. The number of personal investment accounts increased from 9.2 million in 2016 to 13 million in 2024, and the total assets of Saudi banks grew from $693.3 billion to $1.12 trillion.

Furthermore, in May 2024, the third-party brand evaluation agency Brand Finance rated PIF as the most valuable sovereign wealth fund brand in the world, with a brand strength rating of A+.

Overall, PIF has not only played a crucial role in the diversification process of the Saudi economy but has also made significant contributions to the expansion of the Saudi capital market and the steady development of the financial system. As the "Vision 2030" strategy continues to advance, the future performance of PIF remains promising.

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