PIF’s growth story enters a new phase

Against a backdrop of global economic and investment volatility, the Public Investment Fund delivered strong financial results in 2025, reflecting the continued growth and diversification of its investment portfolio and the expanding scale of its role in Saudi Arabia’s economic transformation.

PIF strengthened its financial and investment position both domestically and internationally, deploying capital strategically across priority sectors while advancing initiatives aligned with the Kingdom’s Vision 2030 objectives. Its performance reflects a long-term investment approach that balances financial returns with strategic investments in key sectors and markets.

PIF’s total revenues rose 9 percent year on year in 2025 to SR450 billion ($120 billion), while net income more than doubled to over SR65 billion, supported by increased contributions from mature companies across its portfolio.

Assets under management reached approximately SR3.4 trillion in 2025, up from around SR2 trillion in 2021 and SR500 billion in 2015, highlighting the substantial expansion of the Fund’s investment portfolio over the past decade. PIF also achieved an annualized total shareholder return of 5.8 percent since 2017, reflecting its focus on long-term value creation.

The fund’s contribution to Saudi Arabia’s real non-oil GDP was equivalent to 11 percent in 2025, while its cumulative contribution since 2021 reached SR1.286 trillion. This underscores PIF’s growing role not only as an investor but also as a catalyst for economic activity and diversification.

PIF also expanded its global presence during 2025, with three portfolio companies opening offices across Europe and Asia, alongside selected investments in key international markets. These developments contributed to a 12 percent increase in the fund’s international investments and were supported by strengthened institutional capabilities and governance frameworks.

At the same time, PIF continued its transformation into a digitally enabled investment institution, using digital solutions and artificial intelligence to enhance its capabilities and operations. Its performance against the 2025 Governance, Sustainability and Resilience Index standards issued by Global SWF also reinforced its standing among the world’s leading sovereign wealth funds in governance, sustainability and resilience.

Higher dividend distributions from portfolio companies and strong returns from financial investments supported PIF’s total shareholder return in 2025. These gains were partly offset by negative valuation movements in some assets amid broader financial market volatility, as well as the continued deployment of capital into long-term domestic investments supporting the Kingdom’s economic transformation.

The fund also continued to diversify and strengthen its funding base. Key milestones included the issuance of its first euro-denominated green bonds and the establishment of a commercial paper program, expanding its short-term funding flexibility and overall financing capabilities.

PIF maintained strong credit ratings during the year, including an “Aa3” rating with a stable outlook from Moody’s, “A+” with a stable outlook from Fitch, and an “A-1” short-term rating from S&P Global Ratings. These ratings reflect the fund’s strong credit profile and financial position, supporting continued access to global capital markets and reinforcing investor confidence.

PIF also launched several strategic companies in 2025, including Humain, marking a significant step in advancing Saudi Arabia’s artificial intelligence capabilities, and Expo 2030 Riyadh Co., established to develop and operate facilities for Expo 2030 as the Kingdom prepares to host the global event.

In 2025, PIF completed the five-year phase of its strategy that began in 2021 and entered the next phase covering 2026-30. The new phase focuses on developing competitive domestic economic ecosystems, unlocking the full potential of PIF’s strategic assets and maximizing long-term returns.

Looking ahead, PIF will continue to invest strategically and at scale to create sustainable long-term value. Its priorities include developing six integrated domestic economic ecosystems while pursuing high-return international opportunities aligned with major global trends and structural transformations.

Investment priorities will span sectors including artificial intelligence, the energy transition, advanced manufacturing, sports and entertainment. Through these investments, PIF is positioned to continue combining financial value creation with its broader mandate to support Saudi Arabia’s economic transformation.

• Talat Zaki Hafiz is an economist and financial analyst.  X: @TalatHafiz