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.