Saudi Arabia’s PIF splashes cash in 2023

The Saudi Public Investment Fund topped the list of sovereign funds in the world during 2023 in terms of activity, as it pumped investments worth $31.5 billion, an increase of 33% compared to 2022.

The Saudi Public Investment Fund concluded 48 deals, 42% of which were in the Kingdom, according to a report issued by the Sovereign Fund Institute.

Within a short period of eight years since its restructuring, the Saudi sovereign fund has become a major force at home and abroad and aims to become the largest sovereign fund in the world by 2030, according to the Kingdom’s vision.

During 2023, the value of sovereign fund assets in the Gulf region reached a historic peak of $4.1 trillion, compared to $3.8 trillion in 2022.

Other sovereign funds in the region also outperformed their global counterparts in terms of activity, namely: the Abu Dhabi Investment Authority, Mubadala and Holding Company (ADQ), in the United Arab Emirates, and the Qatar Investment Authority.

But overall, investments pumped by Gulf sovereign funds declined to $75.6 billion, compared to $85.9 billion in 2022.

One of the reasons for the activity is the continuing high level of oil prices, as Gulf funds reaped the benefits of unexpected financial gains and recovered faster than others from the financial market disaster in 2022, according to the report.

This activity is also due to the maturity of the investment scene, with a wide range of players entering the local and global markets with an unprecedented level of development.

According to the World Bank, this has increased economic diversity, which is predicted to propel GCC growth to 3.6% and 3.7% in 2024 and 2025, respectively.