{"id":85444,"date":"2024-04-23T00:00:00","date_gmt":"2024-04-23T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/04\/23\/the-pif-had-a-really-busy-1q-2024-heres-what-you-need-to-know\/"},"modified":"2024-04-23T00:00:00","modified_gmt":"2024-04-23T00:00:00","slug":"the-pif-had-a-really-busy-1q-2024-heres-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/04\/23\/the-pif-had-a-really-busy-1q-2024-heres-what-you-need-to-know\/","title":{"rendered":"The PIF had a really busy 1Q 2024 \u2014 here\u2019s what you need to know"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong>The Public Investment Fund (PIF) has been doubling down on key <\/strong><strong>investments <\/strong>in priority sectors as part of its bid to diversify the Kingdom\u2019s economy away from oil. Its mandate to go big now sees it <a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/news\/story\/0f958dca-07ac-4151-85cb-8b51c097592f\" style=\"\" rel=\"noopener\">ramping up<\/a> its annual deployment capacity with the goal of hitting USD 70 bn a year starting 2026, up from the current annual pace of USD 40-50 bn.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Its spending spree easily placed it atop the sovereign fund league table for 2023<\/strong>, with investments up 33% y-o-y to USD 21.6 bn through 49 transactions. PIF dethroned Singapore's sovereign Government of Singapore Investment Corporation (GIC) for the first time in five years in the ranking. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The PIF had a relatively busy 1Q:<\/strong> Since the start of the year, the PIF has been on track to secure the top SWF spot for a second consecutive year with multiple investments across sectors including oil, technology, and gaming.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>It doubled the size of its stake in Aramco: <\/strong>The PIF <a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/news\/story\/27c8534c-1cc4-40c9-a7c7-061f695a9404\" style=\"\" rel=\"noopener\">grabbed a bigger piece<\/a> of Aramco in March ahead of a potential secondary share sale by the state-owned oil giant. The private transaction \u2014 which was worth about USD 164 bn \u2014 saw the government offloading an 8% stake in Aramco to the fund. The transfer brought the PIF\u2019s direct and indirect ownership of the oil giant to 16%, providing it \u201cwith over USD 9 bn in annual dividend revenue from Aramco\u201d. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>And banking on sustainable tech manufacturing: <\/strong>The PIF\u2019s new advanced manufacturing investment platform Alat <a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/news\/story\/4a3cbdd1-60dd-4955-bd83-a2f9d378e836\" style=\"\" rel=\"noopener\">unveiled in February<\/a> four new global partnerships under a plan to create a sustainable manufacturing hub in the Kingdom. It plans to invest USD 100 bn through 2030. The partnerships include a USD 150 mn investment by Alat with Japanese technology investment giant Softbank to create an industrial automation venture that will manufacture advanced industrial robots.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>While still maintaining its love for EVs:<\/strong> PIF unit Ayar Third Investment Company <a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/news\/story\/24d261bb-f0f8-4a49-988c-7e3eeebeaa2a\" style=\"\" rel=\"noopener\">is set<\/a> to buy an additional USD 1 bn worth of stock in US luxury EV manufacturer Lucid Motors. The EV maker raised USD 3 bn in capital in 2Q 2023 of which USD 1.8 bn came from the PIF. The potential proceeds will finance the company\u2019s capex and working capital, among other things.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>And a push for world-scale AI play + gaming: <\/strong>PIF executives <a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/news\/story\/399e70a3-e2fe-4f5f-8a42-286b5b4ce2db\" style=\"\" rel=\"noopener\">have been reportedly<\/a> exploring the setup of a USD 40 bn fund to invest in AI, making the fund the world\u2019s largest investor in AI. The fund could start investing as early as the second half of this year. It would invest in everything AI, from chipmakers and AI companies to data centers. PIF-owned Savvy Games Group said it is eyeing more investments in mobile game development after its online board game Monopoly Go gained major traction, grossing some USD 2 bn in sales.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Cybersecurity was also on the PIF\u2019s radar: <\/strong>The PIF\u2019s Saudi Information Technology (Site) <a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/news\/story\/3536b78d-6bca-46f4-ab63-2f298ecbdf80\" style=\"\" rel=\"noopener\">signed an agreement<\/a> with South Korean IT solutions provider AhnLab to establish a cybersecurity joint venture. They\u2019re looking to market cybersecurity solutions to government agencies and the private sector in Saudi and across the region and into North Africa. A wholly owned unit of Site is set to acquire a stake in the Seoul-based firm through a KRW 74.4 bn (c. USD 55.3 mn) capital injection on 27 June.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What we expect to see in the coming months: <\/strong>Sabic\u2019s sale of steel subsidiary Hadeed to the PIF \u2014 which could draw in USD 1.7 bn to USD 1.9 bn upon its completion \u2014 is <a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/news\/story\/927c9005-50b0-4a1f-b4e5-599628a82d8b\" style=\"\" rel=\"noopener\">set to close<\/a> during the first half of the year. PIF-backed Manara is <a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/news\/story\/ef5171e7-6692-4b5d-80be-a73cd23640b3\" style=\"\" rel=\"noopener\">reportedly close<\/a> to a USD 1 bn investment in Barrick Gold\u2019s Reko Diq copper and gold mining project in Pakistan. It is also vying for a stake in Zambia's First Quantum Minerals copper mines Sentinel and Kansanshi.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>And beyond:<\/strong> The Public Investment Fund (PIF) is <a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/news\/story\/8cb34099-b080-4684-a0e2-3a2488ce9c9c\" style=\"\" rel=\"noopener\">reportedly in early talks<\/a> to acquire national carrier Saudia as soon as next year to add it to its aviation assets portfolio. Saudia\u2019s ownership will be taken over by PIF from the government with the intention of improving its efficiency and net income. It could be either privatized or merged with Riyadh Air \u2014 a second flagship carrier being set up by PIF, they added.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The spending spree is <\/strong><strong><a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/news\/story\/9eb3e954-0280-4850-8be9-becd1d915544\" style=\"\" rel=\"noopener\">sending the PIF<\/a><\/strong><strong> considering more global bond sales and IPOs<\/strong> as it looks to build up the liquidity it needs to invest faster. The fund <a target=\"_blank\" href=\"https:\/\/enterprise.news\/ksa\/en\/news\/story\/ba2ec221-20e3-415c-ae7a-0392be183bb4\" style=\"\" rel=\"noopener\">raised USD 7 bn<\/a> since the start of the year in two global debt sales. Pieces of PIF\u2019s portfolio companies may soon be up for grabs as part of the fund\u2019s plan. This could include anything from Saudi Telecom (Stc) to Maaden and Tadawul Group. Some of those lined up for share sales by the PIF this year include leading pharma player Nupco and Saudi Global Ports. The plan comes as the PIF\u2019s liquid assets fell to its lowest level since 2020 to USD 15 bn as of September.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The PIF unseated Singapore's sovereign wealth fund as the world\u2019s top sovereign fund last year<\/p>\n","protected":false},"author":1,"featured_media":85445,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2641],"tags":[39,31,300],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-85444","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-enterprise-explains","tag-enterprise-explains","tag-investment-watch","tag-pif-watch","wpautop","entry"],"acf":{"mongo_id":"549efba9-4ae3-4c38-b1af-7fa80b8ef2f4","order":"4","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2024\/4\/1619.jpg","photo_position":"above","homepage_title":"PIF had a busy 1Q 2024","full_issue_title":"Here\u2019s what you need to know about the Saudi Public Investment Fund\u2019s very busy first quarter of 2024","related_issue":[85437],"teaser":"The PIF unseated Singapore's sovereign wealth fund as the world\u2019s top sovereign fund last year","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2024\/4\/.1e75e02b-f1e6-45cd-84e3-05007f7a9504.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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