PIF bottom line more than doubles in 2025, clears AUM target

The Public Investment Fund (PIF) more than doubled its net income in 2025, up 152.4% y-o-y to SAR 65.2 bn, driven by higher fair-value gains and operating income even as dividend income fell, according to its financials (pdf). Revenue rose 9% y-o-y to SAR 449.9 bn and operating income climbed 125% y-o-y to SAR 78 bn.

Much of the lift was unrealized. Total income from investment activities reached SAR 137.9 bn, up from SAR 129.4 bn — but the mix has shifted. Income from fair-value changes in financial instruments nearly doubled to SAR 38.8 bn, and income from fair-value changes in managed funds rose to SAR 29.1 bn from SAR 20.7 bn. Dividend income, meanwhile, fell to SAR 65.3 bn from SAR 84 bn, a drop the fair-value gains more than absorbed.

The operating side pulled its weight too. Earnings from associates and joint ventures more than tripled to SAR 9.8 bn from SAR 2.8 bn, administrative costs fell 8.7% y-o-y to SAR 157 bn, and operating cashflow rose by roughly a quarter to SAR 75.5 bn.

Where the operating revenue came from: Banking and financial services led at SAR 85.3 bn, followed by telecoms at SAR 76.8 bn and mining at SAR 38.8 bn. Agriculture and livestock more than tripled to SAR 7.6 bn.

On the balance sheet: PIF’s investments in associates and joint ventures rose to SAR 212.8 bn from SAR 196.9 bn. Investment securities remained the largest asset category at SAR 2.16 tn, while investment properties rose 23% y-o-y to SAR 80.5 bn. Cash reserves stood at SAR 354.4 bn, and loans and borrowings rose 27% y-o-y to SAR 725.3 bn — taking borrowings to 16% of assets.

The fund cleared a milestone on the way: Assets under management (AUM) grew 5% y-o-y to SAR 4.54 tn in 2025, passing the SAR 4 tn target it set for 2025 and keeping it on the path to SAR 10 tn by 2030.

How it stacks up globally: The latest AUM boost pushed PIF past the Abu Dhabi Investment Authority (USD 1.18 tn) to become the largest Arab sovereign wealth fund at USD 1.21 tn of AUM, now fourth worldwide behind Norway’s NBIM and China’s Safe and CIC, Alarabiya reports, citing Global SWF data.

Looking ahead

A foundation for 2026-2030: The solid earnings form a sound launchpad for the fund’s adjusted strategy, more focused on generating financial returns, building stronger local champions, and taking a more measured approach to gigaproject spending as the Kingdom faces a wider mix of challenges, such as a ballooning deficit and war-fueled oil export and supply chain disruptions that have weakened investor sentiment.

What’s next? PIF will present European partners with roughly 140 prospects worth around EUR 10.4 bn through 2030. It’s also reworking its sports portfolio — seeking external investment for Newcastle United’s infrastructure plans, winding down its LIV Golf financing, and exploring selling several football clubs.