Saudi Arabia’s Public Investment Fund (PIF) emerged as the leading global investor among sovereign wealth funds in the previous year, significantly expanding its investment portfolio, as outlined in a new report.
In 2023, the PIF executed 49 deals amounting to $31.6B, marking a 33% increase from 2022, according to the annual report from industry specialist Global SWF released on Monday.
Outperforming Singapore’s GIC, which held the top investor position in 2022, the PIF’s robust performance was notable.
The report highlighted that alongside the PIF, four other Gulf funds – Abu Dhabi Investment Authority, Mubadala Investment Company, ADQ, and Qatar Investment Authority – collectively known as the “oil five,” ranked among the top-10 most active deal makers in 2023.
PIF’s Rapid Transformation Into a Global Powerhouse
The report acknowledged the PIF’s significant transformation in just eight years, becoming a powerhouse domestically and internationally. It plays a central role in Riyadh’s economic diversification initiatives and holds stakes in major companies like Meta and Alphabet.
Throughout the year, the PIF announced various deals, including the acquisition of the US gaming company Scopely for $4.9B, the purchase of Standard Chartered’s aircraft leasing division for $3.6B, and the agreement to acquire Saudi Basic Industries Corporation’s steel unit Hadeed for $3.3B.
The report emphasized the diverse range of deals as a testament to the PIF’s extensive reach, forming a wide net to contribute value to Saudi Vision 2030, according to The National News.
The PIF’s portfolio in US equities grew by 18% in 2023, primarily due to the increased value of existing stocks. Half of the PIF’s US-listed portfolio is in the consumer segment, including investments in gaming companies like Activision Blizzard, Electronic Arts, and Take-Two.
While the total investments by sovereign wealth funds globally fell 20% to $124.7B in 2023 amid market volatility, the “oil five” from the Middle East continued to drive global SWF activity.
Mubadala, with assets worth AED 1.01T ($276B), remains active in various sectors globally. The assets under management of sovereign wealth funds in the GCC reached a historic peak of $4.1T in 2023.
Sovereign wealth funds are also increasing investments in green assets, with a record $26.1B, nearly half of which is attributed to Gulf sovereign wealth funds, according to the report.
