Saudi Arabia’s PIF rises to 5th among world’s largest sovereign wealth funds  

According to the latest rankings from the Sovereign Wealth Fund Institute, the PIF demonstrated a strong domestic investment orientation, with 80 percent of its assets allocated within the Kingdom and 55 percent of its portfolio invested in alternative assets. Shutterstock
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Updated 04 January 2026
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Saudi Arabia’s PIF rises to 5th among world’s largest sovereign wealth funds  

RIYADH: Saudi Arabia’s Public Investment Fund has climbed to fifth place among the world’s largest sovereign wealth funds, with assets under management reaching $1.15 trillion. 

According to the latest rankings from the Sovereign Wealth Fund Institute, the PIF demonstrated a strong domestic investment orientation, with 80 percent of its assets allocated within the Kingdom and 55 percent of its portfolio invested in alternative assets. 

This domestic and alternative-heavy allocation contrasts with global trends, as several top-ranked funds, such as Norges Bank Investment Management, maintain zero domestic exposure and lower allocations to alternative investments. 

The PIF recorded an increase of $226 billion in assets by December, up from $925 billion at the end of December 2024, according to a report by Argaam. 

Topping the global rankings is the Government Pension Fund of Norway, managed by Norges Bank Investment Management, with $2.04 trillion in assets. 

China’s State Administration of Foreign Exchange ranked second with $1.69 trillion, while China Investment Corp. placed third with $1.56 trillion. 

The Abu Dhabi Investment Authority ranked fourth, managing $1.18 trillion in assets. 

Established in 1971, the PIF plays a central role in Saudi Arabia’s Vision 2030 economic diversification strategy, deploying sovereign capital across sectors including technology, tourism and infrastructure. 

In December, the PIF reinforced its role as a key driver of economic transformation in the Kingdom by announcing a strategic transaction with global real estate services firm JLL. 

Under the agreement, JLL will acquire a significant stake in Saudi Facilities Management Co., known as FMTECH, a national firm launched by the fund in 2023. The PIF will retain a majority stake, with the transaction expected to close subject to customary regulatory and contractual conditions. 

FMTECH, which serves both PIF portfolio companies and clients across the public and private sectors, will leverage JLL’s global network, digital platforms, and operational expertise to enhance service delivery and operational transparency.  

In November, PIF also completed the sale of part of its stake in Umm Al Qura for Development and Construction Co. through an accelerated bookbuild offering.   

The transaction involved 48 million shares, equivalent to 3.3 percent of Masar’s share capital, and raised more than SR950 million ($253 million) at a final offer price of SR19.8 per share. 


How KAUST is transforming waste into wealth

Updated 09 January 2026
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How KAUST is transforming waste into wealth

  • Researchers target $275m market with waste-to-value algae innovation

RIYADH: Turning food waste into a valuable industrial product may sound improbable, but scientists at King Abdullah University of Science and Technology are proving it is possible — using algae that has existed for millions of years. 

Last month, researchers at the university unveiled a sustainable method that harnesses an ancient red microalga to reduce food waste in the Kingdom while producing a high-demand natural pigment.

The study was led by bioengineering student Mauricio Masson, with support from Michael Fox, assistant professor of marine science, alongside researchers from KAUST and the Arizona Center for Algae Technology and Innovation. The international team included Kyle Lauersen, KAUST associate professor and lead author of the study.

Scientists at King Abdullah University of Science and Technology (KAUST) developed a sustainable method to use an ancient type of algae while reducing food waste in the kingdom. (Supplied)

The research highlights a “sustainable bioprocessing” approach, demonstrating how an aquatic plant can convert chocolate factory waste into C-phycocyanin — a blue pigment with a global market expected to reach $275 million over the next four years.

“Our research focused on an extremophilic red alga that can thrive in harsh conditions and efficiently consume sugars and nutrients found in food waste streams,” said Lauersen.

Lauersen is an associate professor and chair of the bioscience and bioengineering programs in the Biological and Environmental Sciences and Engineering Division at KAUST. He explained that a key objective of the study was to show that food waste — often discarded or sent to landfills — can be repurposed as a feedstock for producing high-value compounds, including natural pigments and proteins, through algae-based bioprocesses.

“Our main goal was to develop an environmentally friendly approach to turn waste into useful products that have the potential to be scaled,” Lauersen told Arab News.

FASTFACT

Did you know?

• By 2030, the global market for C-phycocyanin is projected to exceed $275 million, reflecting growing demand across food, health, and industrial sectors.

• C-phycocyanin has demonstrated potential benefits in antioxidation, inflammation, cancer research, antimicrobial activity, neurodegeneration, diabetes management, and wound healing.

• As a natural pigment, C-phycocyanin offers a healthier alternative to synthetic food colorants and is approved by the US FDA for use in food products.

He added: “Algae are especially well suited for this because they grow quickly, require relatively few resources, and can metabolize a wide range of organic compounds.”

The red microalga Galdieria yellowstonensis feeds on chocolate waste rich in residual sugars, producing a protein-dense biomass that contains C-phycocyanin, according to KAUST. The pigment is widely used as a natural food coloring — found in products such as ice cream and blue-colored beverages — as well as in cosmetics and pharmaceuticals.

Beyond the study’s original goals, researchers also discovered that elevated levels of carbon dioxide significantly enhance algae growth, even though CO₂ is typically considered a byproduct of microbial sugar consumption.

Another major outcome of the research is its potential to reduce land pollution by transforming food waste into a nutrient source for algae, offering a sustainable alternative to disposal. 

Galdieria yellowstonensis feeds on chocolate waste containing residual sugar, producing a protein-packed biomass that includes C-phycocyanin. (Supplied)

KAUST believes the findings could positively impact Saudi Arabia’s economy by helping food manufacturers lower production costs while addressing environmental concerns.

“The species we studied can grow on waste streams that are unsuitable for conventional crops or microorganisms,” said Lauersen.

“This makes algae an attractive platform for circular economy solutions, where waste is transformed directly into valuable materials rather than being treated as a disposal problem.”

The research effort is ongoing. Scientists at KAUST are currently collecting chocolate waste locally and plan to scale up the process using other industrial waste streams available across the Kingdom. The initiative aims to support companies in transitioning toward a circular carbon economy while contributing to Saudi Arabia’s green agenda.

“Food waste is a major global challenge, contributing to greenhouse gas emissions, resource inefficiency, and environmental degradation,” said Lauersen.

“By recycling waste into useful products, we can reduce pressure on landfills, lower emissions, and make better use of existing resources.”

“These types of solutions are essential as industries worldwide face growing demands to become more sustainable and climate resilient, especially in the Middle East, which relies on heavily on imports.”