The Saudi Public Investment Fund (PIF) has experienced a meteoric rise in the global hierarchy of sovereign wealth entities, propelled by a staggering 55 percent augmentation in its assets under management.
Currently, the PIF’s portfolio is valued at an impressive $925 billion, as reported by the Sovereign Wealth Fund Institute based in the United States, a substantial leap from $595.6 billion in the preceding year.
This impressive growth has seen the PIF outpace Kuwait’s sovereign wealth fund in asset value, positioning it just behind the Abu Dhabi Investment Authority within the Gulf region.
Contributing to this ascent was the PIF’s strategic transaction in March, which increased its ownership in Aramco by 8 percent, translating to roughly $328 billion. This significant acquisition accounts for 37 percent of the PIF’s portfolio and has secured it the fifth spot in the worldwide rankings of sovereign wealth funds.
“The stake in Aramco is poised for potential appreciation with the government’s plan to release more shares to the public, which will amplify PIF’s financial leverage and enhance its creditworthiness as it propels the Vision 2030 initiatives,” stated the SWFI.
As outlined by the Global SWF, the Saudi sovereign fund’s access to bond markets is crucial for its strategic goals. The institute estimates that the PIF’s total debt is around $36 billion, with a recent accumulation of $7 billion from two bond sales in early 2024.
In a recent report, it was highlighted that the PIF emerged as the world’s preeminent sovereign investor in 2023, executing investments amounting to $31.6 billion across 49 transactions, marking a 33 percent enhancement from the previous year.
In a notable January deal, the PIF acquired a 23.1 percent share in the Middle East Paper Co. for SR522 million ($139.1 million), thereby reinforcing Mepco’s expansion and its stature as a key regional paper product supplier for the construction sector, while also fortifying the local supply chain.
The fund has also ventured into transportation, inaugurating Riyadh Air with a $30 billion endowment in 2023, and expanding into aviation services through investment in Saudia Technic.
Moreover, the PIF is on the verge of concluding the purchase of the Saudi Iron and Steel Co. (Hadeed) from SABIC for $3.3 billion. In collaboration with South Korea’s POSCO, the fund is championing green hydrogen production to drive the development of a sustainable steel industry.
With an ambitious target, the PIF aims to steward $2 trillion in assets by 2030, projecting 83 percent of these assets to be domestic.
Elsewhere, the UAE’s Abu Dhabi Investment Authority (ADIA) has sustained its dominant status this year, with its assets under management swelling to $993 billion from $790 billion in the previous year.
Ranking third among the Gulf sovereign wealth funds, the Kuwait Investment Authority displayed assets totaling $846 billion, a rise from $750 billion the year before.
Meanwhile, Qatar’s sovereign wealth fund held onto the fourth spot in the region, with the Qatar Investment Authority reporting assets of $510 billion, up 7.36 percent from the previous year.
According to the Global SWF, Middle Eastern wealth funds collectively manage a financial powerhouse of $4.8 trillion. Of the 60 major deals recorded in 2022, Gulf funds were responsible for 25, with a minority involving US or European entities.
Rounding out the regional rankings, the Investment Corp. of Dubai commands $341 billion in assets, while Abu Dhabi’s Mubadala and Developmental Holding Co., also known as ADQ, report $276 billion and $199 billion, respectively.
Lastly, Saudi Arabia’s National Development Fund claims the eighth spot across the Gulf, with assets reported at $132 billion, followed by the Emirates Investment Authority at $91 billion and Dubai World at $47 billion.