Prime Highlight:
- Saudi Arabia’s Public Investment Fund (PIF) has climbed to fifth place globally, managing $1.15 trillion after adding $226 billion over the past year.
- The fund invests heavily in domestic projects and alternatives like private equity and infrastructure, supporting Saudi Arabia’s Vision 2030 economic plan.
Key Facts:
- At the end of December 2024, the PIF managed $925 billion, and its portfolio growth reflects both domestic expansion and active investment strategies.
- In recent months, PIF entered a strategic deal with JLL for FMTECH and sold part of its stake in Umm Al Qura for Development and Construction Co., raising over SR950 million.
Background:
Saudi Arabia’s Public Investment Fund has climbed to fifth position among the world’s largest sovereign wealth funds, managing $1.15 trillion in assets. The latest rankings from the Sovereign Wealth Fund Institute show that the PIF recorded strong asset growth over the past year, adding $226 billion to its portfolio.
At the end of December 2024, the fund managed $925 billion. By December this year, that figure had risen sharply, reflecting both domestic expansion and active portfolio management.
The rankings place Norway’s Government Pension Fund at the top with $2.04 trillion in assets. It is followed by China’s State Administration of Foreign Exchange at $1.69 trillion, China Investment Corporation at $1.56 trillion, and the Abu Dhabi Investment Authority at $1.18 trillion.
The PIF stands out for how it invests. It puts about 80% of its money in Saudi Arabia and invests 55% of its portfolio in alternatives like private equity, infrastructure, and big development projects. This is different from funds like Norway’s, which don’t invest at home and put less money in alternative assets.
Founded in 1971, the PIF helps Saudi Arabia carry out its Vision 2030 plan to grow the economy beyond oil. The PIF invests in technology, tourism, real estate, and infrastructure to help the economy grow over the long term.
In December, the PIF announced a strategic deal with global real estate services firm JLL. Under the agreement, JLL will acquire a significant stake in Saudi Facilities Management Co., also known as FMTECH. The PIF will keep a majority holding, and the transaction will close after regulatory approvals.
Earlier, in November, the fund sold part of its stake in Umm Al Qura for Development and Construction Co. through a share sale that raised over SR950 million, strengthening its capital position while supporting market activity.
