PIF says assets hit $594bn despite $16bn loss in 2022

Saudi Aramco

Saudi Arabia’s Public Investment Fund (PIF) said gross assets under management (AUM) exceeded SAR2.23 trillion ($594.43 billion) in 2022, rising 12.62 percent from the previous year.

International investments made up 23 percent of its AUM, worth SAR512 billion, while 68 percent were local investments (SAR1.72 trillion), PIF said in its annual report for 2022. The remainder were investments in treasury.

The fund has generated a total shareholders’ return of eight percent since the start of the vision realisation programme on September 30, 2017 until the end of 2022.

PIF locally deployed SAR120 billion in strategic sectors and established 25 companies in 2022.

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However, the sovereign wealth fund reported a SAR58.54 billion comprehensive loss for 2022 after the fair value of its investments in SoftBank Vision Fund dropped and a market downturn hit other investments, mainly in the technology sector.

This compared to a SAR95.29 billion profit in 2021.

The losses were partially offset by income from dividends and realised gains from investments, supported by an increase in revenues of some subsidiaries, including Saudi National Bank, Saudi Arabian Mining Company (Ma’aden), Saudi Telecommunication Company (STC), Tahakom Investment Company and Sela Sports Company.

The report stated that expanding its three subsidiary offices in London, New York and Hong Kong will support PIF’s continued growth.

PIF raised new debt of SAR75 billion last year, including green bonds issuance of SAR11.25 billion and SAR63.75 billion related to seven-year long-term loans. In contrast, a loan of SAR41.25 billion was repaid.

In February 2022, Saudi Crown Prince Mohammed bin Salman announced the transfer of four percent of Saudi Aramco shares worth $80 billion to the PIF.

Another four percent share in the Saudi oil giant, valued at $80 billion, was transferred to PIF’s subsidiary Sanabil Investments in April last year.