The Public Investment Fund’s (PIF) net income declined by 60% y-o-y to SAR 25.8 bn in 2024, Reuters reports, citing a statement issued by the fund. The fund’s revenue increased by 25% y-o-y to SAR 413 bn, Arab News reports.

Behind the dip: The lower bottom line was attributed to high interest rates, inflationary pressures, and impairments tied to changes in operational plans and budgeted costs. "The prioritization of some projects and the extension in the timelines of some giga projects could have been a factor for the impairments," chief economist at Abu Dhabi Commercial Bank Monica Malik said.

Revenue gains were driven by the robust performance of several portfolio companies, including Savvy, Ma’aden, stc, Saudi National Bank, AviLease, and Gulf International Bank, as well as dividend income from Saudi Aramco — despite Aramco slashing its total 2025 dividend policy. “Long-term projects, that are beginning to mature, are also now generating significantly more revenue,” the disclosure mentioned.

PIF’s total assets under management rose 18% y-o-y to SAR 4.3 tn in 2024, Al Arabiya reports. This growth came despite impairments which reduced total assets by less than 2%. The fund’s cash reserves stood at SAR 316 bn, while loans and borrowings increased slightly to SAR 570 bn, with the debt-to-asset ratio unchanged at 13%.

Top sectors: PIF made strategic gains in leisure and tourism, industry, capital markets, and new industries.

Looking ahead: PIF previously aimed to reach SAR 4 tn in AUM by 2025 — a target it has now exceeded. It also plans to invest up to SAR 1 tn in domestic projects and contribute SAR 1.2 tn to non-oil GDP under its medium-and long-term strategy.

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