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

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. (SPA)
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Updated 28 April 2024
Dayan Abou Tine
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PIF set to have $2 trillion in assets under management by 2030: report

  • In March 2024, PIF’s assets under management surpassed $925 billion, up from $700 billion at the end of 2022
Updated 28 April 2024
Dayan Abou Tine

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 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. 

The report highlighted that unlike numerous sovereign wealth funds that frequently choose co-investing as their primary strategy, both globally and in the Gulf region, PIF stands out with a strong preference for direct investments in private equity.

Specifically, it targets critical sectors of the Saudi economy, including sports and leisure, tourism, and gaming, as well as construction, and heavy industry.

Despite the clear advantages that co-investing offers – such as enhanced due diligence, favorable fee terms, and portfolio diversification – some sovereign investors may shy away due to concerns about deal visibility and relinquishing transaction control to other government funds.

According to the report, PIF stood out from other funds due to its substantial domestic investments, which significantly impacted its international investment capacity relative to other funds.

In 2023, Saudi Arabia’s sovereign wealth fund saw an 18 percent growth in its US equities portfolio, driven by rising stock values. 

PIF maintained a passive approach, keeping major positions unchanged. 

According to the report, its largest holding remained a 63 percent stake in Lucid Motors. 

PIF initiated its investment of $1 billion in the electric vehicle rival to Tesla back in 2018, and following Lucid’s initial public offering three years later has continued to infuse capital into the company.

This included an injection of $2 billion in June 2023, and Lucid is on course to commence EV production in Saudi Arabia by 2025.

PIF’s US-listed portfolio includes $8.1 billion in gaming companies such as Activision Blizzard, Electronic Arts, and Take-Two, reflecting the Kingdom’s plan to invest $38 billion to become a hub for this sector as part of Vision 2030.

In its report, Global SWF discussed the challenges encountered by sovereign investors in recent years and the corresponding solutions they implemented in 2023 to enhance the resilience of their portfolios.

One significant challenge involved addressing the decarbonization of the global economy. This was tackled through the introduction of a new sustainable investment strategy, shedding light on “climate alpha.” This typically refers to investments or strategies that aim to address global warming and its associated risks and opportunities.

This could include investments in companies or projects that are focused on renewable energy and efficiency, sustainable agriculture, clean transportation, and other environmentally friendly initiatives.

Sovereign investors showcased their dedication to sustainability during COP28, highlighted by the UAE’s launch of a $30 billion climate-focused fund, supported by BlackRock and fellow state-backed wealth funds. The goal is to access these areas while also greening existing black assets through de-carbonization.

Meanwhile, Saudi Arabia has taken a leading role in direct investments within the EV and automotive sectors. As well as its stake in Lucid, the Kingdom launched its own EV carmaker, Ceer, in a joint venture with Taiwan’s Foxconn. 

Further partnerships include collaborations with Tasaru for component localization, Hyundai for a car plant, and Pirelli for tire manufacturing.

According to Global SWF, sovereign investors directed a record $26.1 billion towards green assets in 2023, prioritizing investments in the energy transition, including renewables, battery storage, and EVs.

Gulf sovereign wealth funds contributed nearly half of this sum, leading the charge in driving the energy transition agenda.

The report also underscored another challenge encountered by sovereign funds, which is market volatility and the risks stemming from geo-economic fragmentation.

To tackle this issue, fund investors have embraced a more comprehensive total portfolio strategy. This strategy integrates alpha and beta return drivers, merging top-down and bottom-up analyses, with a significant emphasis on diversification.

By adopting this holistic approach, investors gain a thorough understanding of their investments, facilitating more informed decision-making, enhanced risk management, and the opportunity to optimize portfolio performance by focusing on the unique attributes and dynamics of each component within the portfolio.

The rise of disruptive artificial intelligence was also addressed in the report, which noted it represents a significant risk for sovereign investors as it can lead to rapid changes in industries, markets, and investment landscapes.

AI-powered technologies can impact traditional business models, alter consumer behavior, and introduce new competitive dynamics. To address this challenge, one proposed solution by sovereign investors is to integrate AI-powered portfolios into their investment strategies.

By incorporating AI technologies into portfolio management, sovereign funds can leverage advanced algorithms and data analytics to gain valuable insights. 

AI-powered portfolios can analyze vast amounts of data in real-time, identifying trends, patterns, and market signals that may not be immediately apparent to human analysts. This can lead to more accurate risk assessments, better market timing, and enhanced investment decision-making.

Additionally, AI can enable sovereign investors to automate certain aspects of portfolio management, such as rebalancing, trade execution, and risk monitoring. This not only increases operational efficiency but also allows for more agile responses to changing market conditions.

According to the report, 2023 saw sovereign wealth funds adjusting their real estate investments amidst concerns of global interest rate hikes and a potential property bubble.

Despite an overall softening in the market, some segments, such as data centers and affordable housing, saw growth as fund investors aligned with emerging megatrends. Data center investments surged by 150 percent to $7.6 billion in 2023, indicating a strong focus on future-oriented assets.

This shift reflects a move from traditional investments to a more sophisticated strategy, exemplified by PIF’s forming partnerships to develop data centers.

The report flagged up that in 2023, the GCC region – led by the Abu Dhabi Investment Authority, Abu Dhabi’s Mubadala, ADQ, PIF, and the Qatar Investment Authority – saw a record surge in sovereign capital to $4.1 trillion in assets under management, with transactions totaling $82.3 billion.

Projections indicate these sovereign wealth funds could reach $7.6 trillion in assets by 2030. This growth, according to the report, is fueled by high oil prices and a maturing investment landscape, driving economic diversification with growth forecasts of 3.6 percent and 3.7 percent for GCC nations in 2024 and 2025.

In this region, two distinctive sovereign wealth fund management approaches were highlighted by Global SWF. 

Abu Dhabi’s strategy involves the establishment of multiple SWFs, each with specific missions overseen by different royals. Saudi Arabia, on the other hand, centralizes its investment and strategic efforts under PIF, aligned with the government’s overarching vision.

Further, its leaders have no problems in announcing grand plans for the fund, using it in its name to buy football clubs or golf leagues, and in sharing its finances publicly given its fundraising efforts, in a rather refreshing fashion, the report said.

The institute presented updated projections in the State-Owned Investors 2030 section, factoring in the industry’s recovery in assets under management in 2023. 

It anticipates that public pension funds and central banks will reach $54.9 trillion by 2025 and $71 trillion by 2030. By then, Norway’s Norges Bank Investment Management, Saudi’s PIF, and Japan’s Government Pension Investment Fund could lead the table with over $2 trillion in assets under management each.

Topics: Public Investment Fund Saudi Arabia

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How AI could end Saudi Arabia’s ‘infinite workday’

Updated 18 September 2025
Waad Hussain
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How AI could end Saudi Arabia’s ‘infinite workday’

  • AI adoption is already demonstrating its potential to reshape work across the Kingdom.
  • Companies must ‘redesign workflows to cut through digital noise, unlock focus’
Updated 18 September 2025
Waad Hussain

ALKHOBAR: At 10 p.m. in Riyadh, a marketing executive checks her inbox one last time. She has already answered over 100 emails, managed a constant stream of Teams messages, and sat through five back-to-back meetings. By 6 a.m., she will be back online.

This “infinite workday” is becoming the norm. According to Microsoft’s latest Work Trend Index, nearly 30 percent of employees check email late at night, while 40 percent are online by early morning. The average Saudi worker now faces a flood of 117 emails and 153 Teams messages daily, with interruptions every two minutes — a pattern that has blurred the line between work and rest.

For Turki Badhris, president of Microsoft Arabia, this is precisely why organizations must move beyond basic digitization toward full transformation.

“AI is not a passing trend. It’s a generational shift that is redefining how work gets done, how decisions are made, and how value is created,” Badhris told Arab News. “The organizations that thrive will be those that are willing to reimagine, not just automate, how work works.”

Turki Badhris, president of Microsoft Arabia. (Supplied)

He calls this the “Frontier Firm mindset,” where companies redesign workflows to cut through digital noise and unlock focus, rather than simply adding new technology on top of old processes.

Human resources professionals are seeing the human cost of this always-on culture firsthand.

“With digital transformation under Vision 2030 and the shift to flexible work models after the pandemic, it’s becoming harder for people to switch off,” said Aminah Alalaiwi, assistant manager HR Business Partner at Bupa Arabia.

“Over time, that takes a real toll on the employee and induces burnout, stress, and lower engagement,” she said.

To address this, Alalaiwi completed Mental Health First Aid training, an initiative her company encouraged.

“It gave me the tools to spot early signs of struggle and respond in a way that actually helps,” she added. “That’s why I believe HR has to go beyond policies. We need to actively create cultures where well-being and performance reinforce each other.”

AI adoption is already demonstrating its potential to reshape work across the Kingdom. At Obeikan Investment Group, the O3ai platform — built on Azure OpenAI and IoT — analyzes production data in real time, boosting operational efficiency by 30 percent and cutting costs by a similar margin across 20 factories.

Aminah Alalaiwi, assistant manager HR Business Partner at Bupa Arabia. (Supplied)

At Ma’aden, Microsoft Copilot and Azure OpenAI are used to summarize policies, draft documents, and automate governance workflows, saving employees more than 2,200 hours every month. At Sanabil Investments, structured adoption of Copilot led to 70 percent employee uptake in just two months, cutting content creation time by 50 percent.

Badhris emphasizes that Microsoft’s role is to help companies go beyond merely deploying tools.

“We work hand-in-hand with leaders to align technology adoption with business priorities, governance frameworks, and change management strategies,” he said. “Our approach is about co-creating roadmaps for responsible innovation.”

To support this transformation, Microsoft is investing heavily in local infrastructure. Its new cloud datacenter region in Saudi Arabia will provide enterprise-grade services with low-latency access and full compliance with data residency requirements, enabling organizations to scale AI securely.

DID YOU KNOW?

• Microsoft Arabia has committed to training 100,000 Saudi nationals in AI skills by 2025.

• The initiative has been launched in partnership with the Ministry of Communications and Information Technology and SDAIA Academy.

• AI adoption is already demonstrating its potential to reshape work across the Kingdom.

But as Alalaiwi warns, even the best tools can backfire without clear boundaries.

“AI can automate repetitive tasks, prioritize communications, and support smarter scheduling, reducing stress and allowing employees to disconnect after hours,” she said. “However, without clear policies, these same tools can generate more notifications, blur boundaries, and increase the expectation of being ‘always available.’”

Skilling remains a cornerstone of this shift. Microsoft Arabia has committed to training 100,000 Saudi nationals in AI skills by 2025, in partnership with the Ministry of Communications and Information Technology and SDAIA Academy. Programs like the Microsoft AI Academy and the Center of Excellence for AI and Cloud Computing aim to prepare Saudi talent with globally recognized certifications and hands-on skills.

Microsoft Arabia has committed to training 100,000 Saudi nationals in AI skills by 2025, in partnership with the Ministry of Communications and Information Technology and SDAIA Academy. (Supplied)

Badhris advises business leaders to act now rather than wait for a perfect plan.

“Start small but start now,” he said. “Identify where AI can cut through the noise, reduce repetitive tasks, and unlock focus. These quick wins often become the catalyst for deeper cultural change.”

As Saudi Arabia accelerates toward Vision 2030, the pressure to transform digitally is rising. But Badhris believes the real competitive edge in the AI era will come not from being the busiest, but from being the smartest—and the most human.

“We can let work spill endlessly into our evenings,” he said, “or we can reclaim time for the things that matter.”


 

 

Topics: Eye On AI Editor’s Choice Turki Badhris Microsoft Arabia

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Saudi port exports rise 9.3% as total cargo hits 334.5m tonnes


Updated 18 September 2025
Nadin Hassan
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Saudi port exports rise 9.3% as total cargo hits 334.5m tonnes


Updated 18 September 2025
Nadin Hassan

RIYADH: Saudi Arabia’s ports saw robust growth in 2024, with exports climbing 9.3 percent to 222.4 million tonnes, pushing total cargo volumes to 334.5 million tonnes and reinforcing the Kingdom’s expanding role in global trade.

Data from the General Authority for Statistics showed that King Fahad Industrial Port in Yanbu led in exports, handling 114 million tonnes — or 51 percent of the total. Imports also rose 3.6 percent to 108.9 million tonnes last year.

The surge in cargo aligns with Saudi Arabia’s National Transport and Logistics Strategy under Vision 2030, which seeks to position the Kingdom as a global logistics hub connecting Asia, Europe, and Africa.

GASTAT’s report highlighted container activity, noting that more than 2.5 million inbound and outbound containers were handled in 2024, including 1.3 million outbound and over 1.2 million inbound units. Of these, 20-foot containers exceeded 1.3 million, while 40-foot containers surpassed 1.1 million, alongside roughly 1,400 containers of other sizes.

In terms of port throughput, Yanbu led with 39.8 percent, followed by King Fahad Industrial Port in Jubail at 19 percent. King Abdulaziz Port in Dammam accounted for 15.5 percent, Jeddah Islamic Port handled 14.1 percent, and the remaining 11.6 percent was distributed among other ports nationwide.

King Abdulaziz Port in Dammam also received the largest share of imports, totaling 38 million tonnes (35 percent of inbound cargo), while Yanbu dominated exports with 114 million tonnes (51 percent of outbound shipments).

Liquid bulk cargo topped all categories, exceeding 177 million tonnes, underscoring the continued importance of oil and petrochemical trade. Transshipment cargo surpassed 21 million tonnes, including nearly 11 million tonnes loaded and 10.4 million tonnes unloaded — equivalent to around 2 million standard containers.

Vessel traffic remained strong, with 8,693 ships docking at Saudi ports. Jeddah Islamic Port received the highest volume at 3,805 vessels, followed by King Abdulaziz Port with 1,980, Neom Port with 951, and Yanbu with 554.

Passenger traffic, however, fell 19.6 percent from 2023, totaling 912,800 travelers. Jazan Port recorded the highest passenger activity at over 485,000, followed by Jeddah Islamic Port with 217,600 and Neom Port with 205,100.

Compiled using data from the Saudi Ports Authority and related entities, the annual maritime report provides valuable insights into the flow of goods, passengers, and vessels, offering a foundation for future transport sector planning and development.

Topics: logistics

Closing Bell: Saudi main index rises to close at 10,780 

Updated 18 September 2025
Reem Walid
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Closing Bell: Saudi main index rises to close at 10,780 

Updated 18 September 2025
Reem Walid

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 130.30 points, or 1.22 percent, to close at 10,780.69. 

Total trading turnover of the benchmark index reached SR16.4 billion ($4.3 billion), with 191 stocks advancing and 58 retreating. 

The Kingdom’s parallel market, Nomu, also climbed, adding 167.71 points, or 0.67 percent, to close at 25,290.92, as 38 stocks gained while 42 declined. 

The MSCI Tadawul Index advanced 15.37 points, or 1.11 percent, to close at 1,398.79. 

The day’s top performer was MBC Group Co., whose shares surged 9.97 percent to SR32.20. Other strong gainers included Electrical Industries Co., up 9.90 percent to SR9.99, and Dar Al Majed Real Estate Co., which rose 7.62 percent to SR13.14. 

On the downside, Saudi Public Transport Co. posted the steepest decline, falling 4.46 percent to SR12.42. Musharaka REIT Fund slipped 3 percent to SR4.20, while Alandalus Property Co. dropped 2.62 percent to SR18.60. 

In corporate developments, Al Kathiri Holding Co. announced that its subsidiary, ALIAN Industry Co., signed a memorandum of understanding with the Rwanda Housing Authority to develop 10,000 affordable housing units. 

According to a Tadawul statement, this MoU aligns with Al Kathiri Holding’s strategy to grow its presence in international markets and introduce modern construction technologies globally, supporting Saudi Vision 2030’s goal of promoting national exports.   

Al Kathiri Holding Co. ended the session at SR2.09, up 0.48 percent. 

Separately, Saudi Arabian Oil Co., Aramco, completed a $3 billion sukuk issuance, comprising 15,000 trust certificates with a par value of $200,000 each. The issuance offers a return of 4.125 percent for five-year certificates and 4.625 percent for 10-year certificates.  

Aramco shares closed at SR24.47, up 1.54 percent. 

Meanwhile, First Avenue for Real Estate Development said the White Land Fees program will have no impact on its Riyadh City portfolio, which consists entirely of income-generating projects and developments under construction with issued building permits. The company emphasized it does not own any undeveloped or “white” land.  

Shares of First Avenue closed at SR8, up 3.71 percent. 

Topics: TASI NOMU

Saudi Arabia’s Al-Baha region unveils industrial projects worth $24m 

Updated 18 September 2025
MOHAMMED AL-KINANI
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Saudi Arabia’s Al-Baha region unveils industrial projects worth $24m 

Updated 18 September 2025
MOHAMMED AL-KINANI

JEDDAH: Saudi Arabia’s Al-Baha region has unveiled SR89 million ($24 million) in industrial projects aimed at attracting investment, creating jobs, and developing its mining and small and medium enterprises sectors. 

Prince Hussam bin Saud bin Abdulaziz, governor of the southwestern region, inaugurated several infrastructure and utility projects at the First Industrial City in Al-Baha, part of efforts to strengthen the local industrial and investment environment. 

The launch was attended by Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef, who also chairs the Saudi Authority for Industrial Cities and Technology Zones, known as MODON, along with its CEO Majed bin Raed Al-Argoubi, according to a statement. 

Al-Baha holds significant untapped mineral wealth, which Saudi Arabia aims to explore as mining emerges as a key driver of economic diversification under Vision 2030. 

The Ministry of Industry and Mineral Resources recently highlighted the region’s deposits of precious and base metals — including gold, silver, copper, zinc, and lead — alongside industrial rocks and ornamental stones such as feldspar, marble, and pozzolan, estimating the value of these resources at SR285.4 billion. 

The newly launched projects include integrated service and logistics facilities in the industrial city, which “will help attract more quality investments, in line with Saudi Vision 2030 objectives to support regional development and empower the industrial sector,” the statement said. 

Multiple memorandums of understanding were also signed to promote investment, develop national competencies, and strengthen cooperation with academic and professional institutions, including the Technical and Vocational Training Corp. and Al-Baha University. 

“The agreements aim to enhance collaboration in training, exchanging experiences, qualifying graduates for employment in the industrial sector, and supporting small and medium enterprises through joint programs that contribute to both investment and industrial efficiency in the region,” the statement added. 

Prince Hussam said the projects underscore the Kingdom’s commitment to advancing the sector, attracting investment, creating youth employment, and boosting SMEs through collaboration with universities and educational institutions. 

Alkhorayef stressed that the industrial and mining sectors are vital for Vision 2030, contributing significantly to economic diversification. 

“He explained that the ministry seeks to extend its initiatives to all regions of the Kingdom, including Al-Baha, by enabling the local industrial environment and promoting unique industries that will enhance the region’s economic role,” the statement said. 

The ministry is collaborating with major companies on exploration, creating investment opportunities in mining and downstream industries, and encouraging investors to seize these prospects. 

By July, the region had granted 39 mining licenses, representing total investments of SR117 million. 

Al-Baha’s industrial base comprises 49 factories: 34 in building materials, nine in food production, five in plastics and rubber, with the remainder in chemicals, metals, and other sectors, according to ministry spokesperson Jarrah Al-Jarrah. 

Topics: Mining Al-Baha

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Aramco raises $3bn via dual-tranche sukuk 

Updated 18 September 2025
MOHAMMED AL-KINANI
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Aramco raises $3bn via dual-tranche sukuk 

Updated 18 September 2025
MOHAMMED AL-KINANI

JEDDAH: Saudi energy giant Aramco has raised $3 billion through a dual-tranche sukuk issuance, highlighting strong global investor confidence and reinforcing the Kingdom’s standing in international Islamic finance. 

Priced on Sept. 10, the securities were listed on the London Stock Exchange, the company said. Proceeds will be used for general corporate purposes, supporting Aramco’s strategy to maintain financial flexibility and operational efficiency. 

The new sukuk tranches comprise $1.5 billion maturing in 2030 with a profit rate of 4.125 percent per annum, and $1.5 billion maturing in 2035 at 4.625 percent per annum. 

The issuance follows a similar $3 billion two-tranche sukuk in October, which was six times oversubscribed. That sale included a $1.5 billion tranche maturing in 2029 at 4.25 percent and another $1.5 billion tranche due in 2034 at 4.75 percent. 

Ziad Al-Murshed, Aramco executive vice president of finance and CFO, said: “We believe this successful issuance reflects the confidence of global investors in Aramco’s exceptional financial resilience and robust balance sheet, as we continue to optimize our capital structure.” 

He added: “Our ability to price the offering with a negative new issue premium across both tranches demonstrates Aramco’s unique credit proposition and standing within international capital markets.” 

According to the company’s press release, the offering attracted robust demand from top-tier institutional investors. 

Topics: Saudi Aramco Aramco

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