RIYADH: Saudi Arabia’s sovereign wealth fund has revised its asset size on its website, reaching $925.2 billion, after it climbed to the fifth spot in a ranking of state-owned investment organizations.
The significant rise in the Public Investment Fund’s standing follows its procurement of an additional 8 percent stake in Aramco, boosting its shareholding’s estimated value to $328 billion.
This acquisition has significantly impacted PIF’s overall assets under management, exceeding $860 billion, a rise from $700 billion by the end of 2022.
As a result, the Aramco holding now accounts for around 37 percent of the body’s portfolio value, representing a key milestone in the fund’s growth trajectory and central role in the Kingdom’s broader economic diversification agenda.
According to the Sovereign Wealth Fund Institute, PIF’s considerable position in Aramco is likely to yield billions of dollars in annual dividends, strengthening its investment capability.
Furthermore, the fund’s involvement in megaprojects and subsidiaries strives to accelerate Saudi Arabia’s Vision 2030 goals.
Notable projects include the development of Alat, a $100 billion industrial electronics company that aims to boost global semiconductor supply and contribute $9.3 billion to the national gross domestic product by 2030.
Furthermore, the fund’s automotive endeavors, such as partnerships with Hyundai and investments in Lucid and Ceer Motors, are consistent with its goal of positioning Saudi Arabia as a major player in global car production.
Earlier in March, Saudi Crown Prince Mohammed bin Salman announced the completion of the transfer of an extra 8 percent of Saudi Aramco’s total issued shares to portfolio firms owned entirely by the fund, according to the state-run news agency.
As stated by SPA, the state now owns 82.186 percent of Aramco shares, with 16 percent going to the fund and its subsidiaries.
The SPA report quoted the crown prince as saying the transfer of ownership of part of the state’s shares in Saudi Aramco to PIF-owned firms is part of “the Kingdom’s initiatives aimed at strengthening the national economy in the long-term, diversifying its resources and creating more investment opportunities.”
The crown prince highlighted that the fund continues to build new economic partnerships, localize technologies, and contribute to the creation of more direct and indirect jobs in the labor market.
