Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), has announced a significant update to its asset size, now standing at an impressive $925.2 billion, Arab News reported. This revision comes after PIF ascended to the fifth spot in the global ranking of state-owned investment organizations.
The surge in PIF’s standing can be attributed to its recent acquisition of an additional 8 percent stake in Aramco, the Saudi Arabian oil giant. This move has boosted the estimated value of PIF’s shareholding in Aramco to a staggering $328 billion. Consequently, PIF’s overall assets under management have surged to over $860 billion, marking a substantial increase from $700 billion recorded by the end of 2022.
The acquisition of the Aramco stake now constitutes approximately 37 percent of PIF’s portfolio value, signifying a pivotal milestone in the fund’s growth trajectory and its pivotal role in Saudi Arabia’s broader economic diversification agenda.
According to the Sovereign Wealth Fund Institute, PIF’s significant position in Aramco is expected to yield billions of dollars in annual dividends, thereby bolstering its investment capability. Moreover, PIF’s involvement in megaprojects and subsidiaries is aimed at accelerating Saudi Arabia’s Vision 2030 goals.
One notable project is the development of Alat, a $100 billion industrial electronics company aimed at enhancing global semiconductor supply and contributing $9.3 billion to the national gross domestic product by 2030. Additionally, PIF’s automotive endeavors, including partnerships with Hyundai and investments in Lucid and Ceer Motors, align with its objective of establishing Saudi Arabia as a major player in global car production.
In March, Saudi Crown Prince Mohammed bin Salman announced the completion of the transfer of an extra 8 percent of Saudi Aramco’s total issued shares to portfolio firms wholly owned by PIF. The state now owns 82.186 percent of Aramco shares, with 16 percent being allocated to the fund and its subsidiaries.
The crown prince emphasized that the transfer of ownership of part of the state’s shares in Saudi Aramco to PIF-owned firms is part of the Kingdom’s initiatives aimed at bolstering the national economy in the long term, diversifying its resources, and creating more investment opportunities. He highlighted PIF’s ongoing efforts to forge new economic partnerships, localize technologies, and contribute to the creation of both direct and indirect jobs in the labor market.
With these developments, PIF’s role as a major driver of economic growth and diversification in Saudi Arabia is increasingly solidified, promising a dynamic future for the Kingdom’s economy.
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