Saudi Gazette report

RIYADH — The Public Investment Fund (PIF) has recorded robust growth of more than 100 percent in its total revenues during the year 2023, soaring to SR331 billion ($88.5 billion), up from SR165 billion ($44 billion) in 2022.

The Saudi sovereign wealth fund said in a statement on Monday that the jump in revenues during the period from January 1 to December 31, 2023 was supported by the growth in the market value of its investment portfolio.

The consolidated financial statements of PIF for the year 2023, were published in accordance with the requirements for listing on the London Stock Exchange. It revealed that the value of PIF assets increased by 28 percent, reaching SR3.7 trillion ($990 billion) by the end of 2023 compared to SR2.9 trillion at the end of 2022. This was boosted by a number of acquisitions and transfer of a percentage of Saudi Aramco shares to a company in the PIF’s portfolio.

During the year 2023, the Public Investment Fund achieved a net profit of 74 billion ($19.7 billion), and the fund’s net income, including comprehensive income, reached SR138 billion ($36.7 billion), supported by the strong financial and investment performance over the last year.

According to the statement, the year 2023 witnessed the sovereign fund strengthening its strategy aimed at diversifying its sources of financing through debt instruments, and during that period the PIF collected an additional SR45 billion ($11.9 billion). Some of the fund’s portfolio companies have also obtained financing for a number of acquisitions, and the fund used various sources of financing, which include loans and debt instruments, profits from investments, capital injections from the government and government assets transferred to it.

PIF’s profits rose after calculating zakat and taxes to reach SR64 billion ($17 billion), compared to losses amounting to SR17 billion ($4.5 billion) in 2022. General reserves and retained earnings from investments shot up 21 percent, reaching SR707 billion ($188 billion) compared to SR583 billion ($155 billion) during the year 2022.

The PIF stated that there were many factors that contributed to the rise in levels of profits, revenues and net income in terms of non-investment activities. The size of the fund’s non-investment portfolio increased by 15 percent, equivalent to SR31 billion, rising from SR207 billion ($55 billion) in 2022 to SR238 billion ($63.4 billion) in 2023, which is attributed to growth in all sectors, especially financial services and communications.

The non-investment portfolio was somewhat affected by the decline in metals and mining sector returns due to the global decline in metal and ore prices after an exceptional rise in 2022.

According to the data, the revenues of the PIF’s investment portfolio increased significantly compared to last year, as it recorded SR98 billion during 2023, an increase of SR135 billion ($36 billion) over the results of 2022, during which the portfolio recorded losses of SR41 billion. Contributing to these positive results was SoftBank’s transformation into a source of profits after it suffered losses in market value last year.

PIF’s profits rose after calculating zakat and taxes, reaching SR64 billion ($17 billion), compared to losses amounting to SR17 billion ($4.5 billion) in 2022. General reserves and retained earnings from investments increased by 21 percent to reach SR707 billion ($188 billion) compared to SR583 billion ($155 billion) for the year 2022.

PIF stated that there were many factors that contributed to the rise in levels of profits, revenues and net income. In terms of non-investment activities, the size of the fund’s non-investment portfolio increased by 15 percent, equivalent to SR31 billion, rising from SR207 billion ($55 billion) in 2022 to SR238 billion ($63.4 billion) in 2023, which is attributed to growth in all sectors, especially financial services and communications.

It is noteworthy that the non-investment portfolio was somewhat affected by the decline in metals and mining sector returns due to the global decline in metal and ore prices after an exceptional rise in 2022. According to the data, the revenues of the fund’s investment portfolio increased significantly compared to last year, as it recorded SR98 billion during the year 2023, an increase of SR135 billion ($36 billion) over the results of 2022, during which the portfolio recorded losses of SR41 billion. Contributing to these positive results was SoftBank's transformation into a source of profits after it suffered losses in market value last year.

The PIF’s financial results for 2023 confirm the strength of its financial position and investment performance, as it was rated “A1” by Moody’s with a positive outlook, and rated “A+” by Fitch with a stable outlook