PIF set to have $2 trillion in assets under management by 2030: report

RIYADH: Saudi Arabia’s Public Investment Fund is poised to reach $2 trillion in assets under management by 2030, propelling it from 5th to 2nd place globally among sovereign wealth bodies, according to Global SWF.

The organization that monitors activity in this area stated that the PIF’s rapid ascent can be attributed to the fund’s focus on  direct investments, emphasis on  key sectors of the Saudi economy, dedication to sustainability  through leading investments in  renewables and green assets, and active participation in the digital economy.

The institute’s 2024 annual report disclosed that in 2023, PIF took the lead as the top investor among all sovereign wealth funds, allocating $31.6 billion across 49 deals – a 33 percent increase from the prior year. 

This progress elevated the fund by 10 positions between global sovereign investors in new capital deployed within a mere three years.

In just eight years since its restructuring, the Saudi fund has become a dominant force both domestically and internationally, with the aim of advancing Vision 2030 and achieving the status of the world’s largest sovereign wealth fund by the end of the decade.

In March 2024, PIF’s assets under management surpassed $925 billion, up from $700 billion at the end of 2022, securing its position as the fifth largest global sovereign wealth fund, after the government transferred an additional 8 percent stake in Aramco to its portfolio.

The fund strategically delved into co-investments and forged joint ventures to bolster Saudi Arabia’s drive for economic diversification. 

Noteworthy examples include partnerships with mining giant Ma’aden, tire makers Pirelli, and car manufacturer Hyundai.

This was alongside an agreement with Baosteel and Aramco for the construction of a steel mill.