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The Public Investment Fund made a profit of nearly USD 37 bn last year after having posted a USD 15.6 bn loss the year before, Reuters reports, saying revenues more than doubled year y-o-y to more than USD 88 bn. “The rise in revenues was driven by factors including an improvement in both investment and non-investment activities in sectors like banking, telecommunications and gaming,” the newswire said.
Still waiting for details: PIF had not posted its 2023 annual report online as of our dispatch time this morning, and news of its financial performance last year hasn’t made state news agency SPA or other government-owned media organizations.
MEANWHILE- PIF maintained its top spot of the global sovereign fund league table in 1H2024. Together with its regional peers, PIF accounting more than half of the USD 96 bn deployed by the world’s sovereign wealth funds in the first half of this year, Bloomberg reported, citing data from Global SWF.
By the numbers: Data shows that PIF, the Abu Dhabi Investment Authority (Adia), and Qatar Investment Authority (QIA) account for 54% of total investment by the world’s SWFs in the first half. Investment by PIF and other regional funds were down year-on-year in absolute terms during the reporting period.
A windfall from oil: “While the market uncertainty has invited global funds to be cautious, Gulf-based and particularly, Abu Dhabi-based funds, have received significant windfall from oil and are more active than ever,” Global SWF Managing Director Diego Lopez said.
REMEMBER- PIF ranked first in 2023 Global SWF report with USD 31.6 bn worth of investment (+33% y-o- bn. PIF last year wrapped-up some 49 transactions, dethroning Singapore’s sovereign wealth fund Government of Singapore Investment Corporation (GIC).
IN CONTEXT- PIF has been considering in recent months more global bond sales and IPOs as it looks to ramp up the pace of investment. The Kingdom’s treasury is prepared to run deficits through 2026 and pace out the implementation of some aspects of select Vision 2030 projects, putting more pressure on PIF to deploy at home. The fund has raised USD 7 bn since the start of the year from two debt sales. Its GBP 650 mn offering — which was the second GBP-denominated debt issuance in Saudi history — was more than 6x oversubscribed in June.
ALSO FROM PIF- The fund ranked first in the region and second globally in governance, sustainability, and resilience (GSR) in a Global SWF ranking, according to a statement by the PIF. It moved up five places in the ranking to score at 96%, highlighting the fund’s role “as an impactful and responsible investor, with best-in-class practices focused on sustainability, transparency, ethics and good governance,” according to the statement.
