PIF’s revenue soars 100% to $88.3bn, latest figures show

Jeddah - Yasmine El Tohamy - RIYADH: Saudi Arabia’s sovereign wealth fund has reported strong financial results for 2023, achieving revenues of SR331 billion ($88.3 billion) from its diverse investment portfolio, marking over 100% percent growth from 2022.

Demonstrating robust returns and significant progress toward its long-term objectives, the Public Investment Fund has released its consolidated financial statements for the year ending Dec. 31, 2023, showcasing its efforts in driving the Kingdom’s economic transformation.

The report, conducted by KPMG, confirmed that the consolidated financial statements accurately reflect the group’s financial position in accordance with International Financial Reporting Standards.

Prepared and published in line with IFRS and the London Stock Exchange listing requirements, the financial statement reveals the following headline figures for 2023:

Revenues: PIF’s revenues soared to SR331 billion in 2023, more than doubling from SR165 billion in 2022. The telecommunications sector contributed SR71.35 million, representing 30.03 percent of total revenue.

Profit after tax and zakat: The fund reported a profit of SR64 billion compared to a loss of SR17 billion in the previous year.

Total assets: PIF’s total assets increased by 28 percent, rising from SR2.9 trillion to SR3.7 trillion.

Retained earnings and reserves: These increased by 21 percent, from SR583 billion in 2022 to SR707 billion in 2023.

Cash position: At year-end 2023, the cash position was SR243 billion, a more than 30 percent increase from the previous year’s SR187 billion.

The performance of PIF in 2023 underscores its role in advancing Saudi Arabia’s economic goals, showcasing its commitment to transparency, governance, and alignment with international best practices for major financial institutions and sovereign wealth funds.

Covering the period from Jan. 1, 2023 to Dec. 31, 2023, the report highlighted the significant growth in PIF’s market value, driven by several acquisitions and the transfer of a portion of Aramco shares to the body’s portfolio.

The fund’s diversified investment strategy and financial management have also been instrumental in achieving these results.

The financial report highlighted PIF’s strategic efforts to diversify its funding sources through debt instruments. During this period, PIF raised an additional SR45 billion and secured financing for various acquisition activities within its portfolio.

PIF employed a diverse range of financing sources, including loans, debt instruments and investment returns, as well as government capital infusions and transferred government assets.

Moreover, PIF’s non-investment portfolio grew by 15 percent, increasing by SR31 billion to SR238 billion in 2023. The growth was driven by a strong performance across sectors, specifically financial services and telecommunications, despite a slight decline in returns from the metals and mining sector due to global price drops following an exceptional rise in 2022.

The investment portfolio of PIF also saw significant improvements, recording revenues of SR98 billion in 2023, a stark contrast to the SR41 billion loss in 2022. This positive turnaround was partly due to the recovery of SoftBank, which shifted from being a source of losses to contributing to the fund’s profits.

The 2023 financial results affirm PIF’s robust financial and investment position, earning an A1 rating from Moody’s with a positive outlook and an A+ rating from Fitch with a stable outlook. These ratings reflect the fund’s strong financial health and solid performance in the global market.

KPMG concluded that the Public Investment Fund’s consolidated financial statements for 2023 present a fair and accurate picture of the group’s fiscal health. The audit confirmed that PIF adhered to IFRS and the standards issued by the Saudi Organization for Chartered and Professional Accountants.