PIF Annual Review 2023 Highlights

Vision and Mission

The Public Investment Fund (PIF) aims to be a global investment powerhouse by enabling sectors that shape the future global economy. Its mission is to invest sustainably over the long term, maximizing returns and fostering Saudi Arabia's economic transformation.

Investment Overview

In 2023, PIF's assets under management (AuM) grew by 29% to SAR 2.87 trillion. This growth supports its strategic mandate, aligning with Vision 2030 and focusing on high-impact investments, diversification, and resilience amid global economic challenges.

Strategic Developments

PIF has created over 90 companies and embarked on expansive giga-projects that captivate global attention. These initiatives not only boost local economic vigor but also inspire global investment activities across burgeoning sectors. The fund's strategic investments focus on potent, long-term opportunities that maximize sustainable returns while diversifying Saudi Arabia's economy.

Performance Highlights

PIF achieved remarkable returns in 2023, with a Total Shareholder Return (TSR) of 8.7% since the Vision Realization Program's inception. The effective management of domestic and international portfolios contributed significantly to this growth.

Sustainability Initiatives

During the year, PIF distinguished itself in green finance with two successful international green bond issuances, raising $8.5 billion. The funds are designated for projects aligned with Saudi Arabia's environmental objectives. The second issuance of $5.5 billion under PIF's Green Finance Framework supports projects in line with the Saudi Green Initiative, earning awards like "Emerging Markets Loan of the Year" and "Middle East Loan of the Year".

Notable Achievements

PIF received recognition as the world's most improved sovereign wealth fund, ranking seventh globally in Governance, Sustainability, and Resilience, reflecting its commitment to international best practices and corporate integrity. It voluntarily complies with the CFA Institute's Global Investment Performance Standards (GIPS®), demonstrating dedication to high standards in reporting, transparency, and integrity.

Governance Structure

Chaired by His Royal Highness Prince Mohammed bin Salman, PIF's Board of Directors is intricately designed to ensure alignment with Saudi Arabia's economic strategies and the broader Vision 2030 goals. The Board comprises seasoned experts and ministers, ensuring a diverse range of insights are considered in the decision-making process. This robust governance framework supports strategic decision-making with proper oversight through concerted interaction between the Board and its committees.

Investment Pools

PIF manages a diverse array of investment pools that include International Strategic Investments (ISI), International Diversified Pool (IDP), and several domestic sector-focused pools. These investment pools are carefully curated to spread risk while ensuring sectoral diversification and global positioning.

Global Impact and Local Development

PIF's international ventures, including partnerships with global industry leaders and investments in cutting-edge technologies, are complemented by local initiatives that seek to nurture underserved yet promising sectors. Investments in giga-projects, sustainable technologies, and diversified asset classes reflect a commitment not only to financial gain but to socio-economic upliftment, ensuring that local communities benefit from PIF's global success.

Executive Management and Governance Practices

Executive Management at PIF is structured to support the Board's strategic decisions and facilitate efficient operations across divisions like finance, risk management, and legal affairs. This seamless integration of governance practices ensures PIF remains a pivotal force in propelling Saudi Arabia's economic narrative on the global stage.

Financial Overview

The Public Investment Fund has firmly positioned itself as a formidable global investment powerhouse, delivering substantial growth and embodying Saudi Arabia's Vision 2030-driven economic transformation. As of 2023, PIF generated an impressive SAR 2.87 trillion in assets under management (AuM), a 29% increase from the previous year. This growth underscores PIF's strategic commitment to diversifying its portfolio through pivotal investments both domestically and internationally.

Future Ambitions

With bold ambitions on the horizon, PIF is accelerating towards an SAR 4 trillion target in AuM by 2025. As part of this vision, PIF aims to elevate its subsidiaries' contributions to non-oil GDP while creating vast employment opportunities, thus further embedding itself as a key driver in Saudi Arabia's ambitious future. PIF is on a mission to engage more deeply with international sustainability efforts, marking its territory as a cornerstone of Saudi Arabia's Vision 2030 for a future that balances modernity with environmental stewardship.