By the end of 2023, the Public Investment Fund of Saudi Arabia had received an overall mean Annual Shareholders’ Return of 8.7%, thereby evidencing its relevance for the Kingdom in the context of the elaboration of the further directions of the development of the economy.
As the Kingdom is on a drive to realize the development agenda of the Vision 2030 development framework, PIF indicates that they play a crucial role in shifting the income source for Tanzania apart from the oil revenue.
Laying one of the societies that have been over-enabled on oil products, thus, Saudi Arabia through its Vision 2030 unveiled in 2016 offers an economic diversification that can decrease the country’s dependence on these kinds of products and develop other sectors to work on.
Yasir Al-Rumayyan, the governor of PIF said that the objective of the funds is clear and that there are big ambitions for 2023.
He said that because the year was full of achievements and advancement in many sectors, PIF was able to sustain its mission as the driving force for change and development of the Saudi economy.
Al-Rumayyan underscored that in the year new giga-projects have been launched, new companies within the portfolio have been launched in various sectors and major partnerships have been also created.
Especially worthy of attention in this regard was PIF, acting by direct and through indirect management of the investment tools of the Kingdom, actively contributed to the financing of priority trends in the development of promising sectors and the reorientation of the Kingdom’s economy.
Examining the AuM figures, PIF’s asset increased by 29 per cent of the year and at the end of the year had close to SR2. The world’s largest asset management companies had an estimated $871 trillion (€765 trillion) in AuM.
And it has been increasing progressively; by July this year, it was slightly over $3. 47 trillion, and there is the further increase in its value at the same time.
According to the IIA, the overall AuM of the PIF as of the end of 2023 is at SR 586 billion, registering an increase of 14 percent. 3 percent higher than the previous figure indicating that the fund has been more vigorous in investing across the world markets.
At home, in its core economic sectors, it has supported employment creation particularly in the core segments which had created between 730 000 direct and indirect employment at the end of 2023 figures increase slightly to more than 760 000 employment as at March this year.
These have provided for high value employment and built the private sector which is fundamental in the Saudi Arabian change process.
As for the sector distribution of the fund’s investments, the major sectors are energy 23.1 %, real estate 17.0%, information technology 9.4% and financials sector 7.3%.
The Saudi sector development is a crucial element of the fund’s domestic strategy as the Saudi SED has been playing a vital role in the Kingdom’s economic diversification process for over fifty years.
The SSD pool is aimed at developing growth points in promising domestic activities by investing directly and indirectly in emerging kinds and enterprises.
Across more than 100 companies in the portfolio with a total value of over SR943 billion in 2023, the AuM was up by 101 percent compared to the prior year.
In the future, investments in the fund are to contribute to the accomplishment of the Kingdom’s economic objectives by the end of 2025, as the document underlined.
This entails SR1.2 trillion in cumulative non-oil gross domestic product, one point eight million new employment opportunities and a sixty percent local content contribution through the PIF and its investments.
The fund in its turn is expected to attract SR 1.2 trillion non-governmental interest, through local and foreign direct investment in 13 strategic sectors, some of which are aerospace & defense, auto motives, entertainment, metals and mining.
