The fund projected the worth of its investments in Saudi megaprojects to be 211 billion Saudi riyals ($56 billion) by the close of 2024. This is 12.4% lower than the same time last year.
PIF is engaged in five major projects, including Neom, a newly planned city and special economic area in the country’s northwest. The Financial Times mentions that this $500 billion initiative is under revision at the moment.
The total assets managed by the fund increased by 19% last year, reaching $913 billion. Concurrently, the yearly return on assets declined to 7.2%, down from 8.7% in the previous year. Over one-third of investments are allocated to Saudi firms, while the portion of foreign investments decreased from 20% to 17%. Megaprojects represent 6% of the fund’s assets, down from 8% the previous year.
In 2024, PIF cut its net profit by 60%, reaching $6.9 billion. The drop was aided by elevated interest rates, inflation, and the write-offs associated with certain projects.
source: ft.com
