Saudi Sovereign Fund Grows Assets 19% to $913 Billion
The figures show the fund now contributes 10% of Saudi Arabia's non-oil GDP, with managed assets reaching SAR 3.42 trillion ($913 billion) and more than $171 billion invested in priority sectors since 2021.
According to the report, released Wednesday, PIF's managed assets rose 19% year-on-year to SAR 3.42 trillion by the end of 2024, generating an average annual shareholder return of 7.2% since 2017. Revenues climbed 25% over the same period. Liquidity and cash positions remained stable, with the fund maintaining a robust balance sheet.
The report highlighted substantial progress in delivering on the fund's strategic investment targets, reinforcing its status as one of the largest and fastest-growing sovereign wealth funds in the world. PIF's cumulative contribution to non-oil GDP from 2021 to 2024 reached SAR 910 billion, with an expected total impact of SAR 1.2 trillion by the end of this year.
PIF Governor Yasir Al-Rumayyan said 2024 marked 'a new and promising phase of exceptional performance and qualitative innovation,' characterized by the systematic integration of artificial intelligence, smart automation, and advanced digital capabilities across all operations. He noted that this shift represents not just technological advancement, but a 'transformational approach' in how PIF invests, operates, and delivers economic and social impact globally.
For his part, Chief Financial Officer Yasir Alsalman reported that SAR 213 billion were directed to priority sectors in 2024 alone, bringing total investments in such sectors since 2021 to over 642 billion riyals.
In turn, Acting Chief Operating Officer and Board Secretary General Maram Al-Johani said PIF maintained its long-term vision while strengthening its influence locally and internationally, continuing to lead Saudi Arabia's economic diversification and generate sustainable returns.
The fund's international portfolio expanded further in 2024, targeting sustainable returns through long-term investments and strategic partnerships in key global markets. PIF's overseas investments aim to diversify assets and income streams, secure partnerships with major corporations and investors, and back advanced technologies that support Saudi Arabia's economic ambitions and shape the future global economy.
PIF diversified its funding base in 2024, securing SAR 36.855 billion ($9.83 billion) in public loans and nearly SAR 26 billion ($7 billion) in private loans. The fund's stability has earned global recognition, with Moody's upgrading its credit rating from A1 to Aa3 in 2024, and Fitch affirming its A+ rating with a 'stable' outlook.
Governance standards also drew praise. PIF scored 96% in the 2024 Governance, Sustainability and Resilience Index from Global SWF — a sharp improvement over 2021 — and ranked first worldwide among 200 sovereign investors, achieving 100% compliance in 2025. It also topped the global list of most valuable sovereign wealth fund brands, with a valuation exceeding SAR 4.13 billion, earning an A+ rating from Brand Finance.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arab News
an hour ago
- Arab News
Saudi Arabia taps AI and immersive tech to drive tourism growth
Saudi Arabia is ramping up the adoption of smart technologies such as artificial intelligence, augmented reality, and virtual reality across its tourism sector, aiming to redefine the visitor experience and support its broader economic diversification agenda. Experts say the integration of these technologies across flagship projects like Neom and the Red Sea Project is positioning the Kingdom as a global tourism hub at a time when the industry is recovering from the pandemic and projected to reach $11.7 trillion in economic contribution by 2025. As part of Vision 2030, the Kingdom is positioning tourism as a key non-oil growth engine. Its National Tourism Strategy targets 150 million annual visitors by 2030 and aims to raise the sector's contribution to gross domestic product from 3 percent to 10 percent. Speaking to Arab News, Nicholas Nahas, partner and tourism & hospitality global competence center lead at Arthur D. Little, said Saudi Arabia is intelligently integrating smart technologies into its tourist destinations, helping the Kingdom emerge as one of the most sought-after tourism hubs. 'In Saudi Arabia, smart tourism, while not always explicitly referenced or promoted as such across its portfolio of tourism developments, is subtly being integrated as a strategic enabler of the country's broader economic shift to diversifying its economy,' said Nahas. He added: 'It includes artificial intelligence for personalized trip planning, biometric systems to streamline travel and immigration, IoT-enabled controls in accommodations, and AR/VR to create immersive storytelling at cultural and entertainment sites.' Nahas further said that smart technologies are being planned as enablers to manage growth, enhance quality, and differentiate the visitor experience. Smart tourism refers to the use of advanced digital technologies across the tourism value chain to enhance visitor experiences, improve operations, and support sustainable destination management. The concept also aligns with the idea of a Smart Destination — a location that leverages technology and innovation to create more immersive and sustainable experiences. Julio De Salvo, Globant's chief solution officer for the Middle East and North Africa and the Asia Pacific region, echoed similar views. He said Saudi Arabia is well-positioned to become a global tourism hub, and this journey could be further accelerated by adopting smart technologies across the sector. Salvo added that some of the key drivers of smart tourism in the Kingdom include massive investments in smart infrastructure — such as AI-enhanced airports and digital visa platforms — a young, tech-savvy population, and a strong commitment to sustainability through regenerative models that prioritize environmental and cultural preservation. The Globant executive also commented on the global post-pandemic recovery of the tourism sector and said the industry is accelerating toward a projected $11.7 trillion in economic contribution by the end of 2025. 'Saudi Arabia isn't riding the wave of global tourism recovery; it's creating its own momentum, using smart tourism as a catalyst for economic diversification, innovation leadership, and long-term global relevance,' said Salvo. Creating personalized experience Salvo told Arab News that the tourism industry is witnessing a rapid shift, where digital tourism is slowly giving way to cognitive tourism — with advanced technologies used to deliver personalized services to travelers. 'In Saudi Arabia, it's no longer just about online bookings or mobile apps — it's about intelligent systems that understand, anticipate, and adapt to travelers' behavior in real-time,' said Salvo. A recent study by global consumer insights provider Toluna echoed this trend, noting that Saudi travelers are increasingly relying on smart technologies, with 87 percent using generative artificial intelligence tools like ChatGPT and Gemini to plan and manage their vacations. As part of Vision 2030, the Kingdom is positioning tourism as a key non-oil growth engine. Its National Tourism Strategy targets 150 million annual visitors by 2030 and aims to raise the sector's contribution to gross domestic product from 3 percent to 10 percent. The report further found that 46 percent of Saudi travelers use AI assistants to discover activities, while 31 percent rely on these tools to optimize their itineraries. Nahas said destinations powered by smart technologies are delivering more personalized, seamless, and immersive experiences — supporting higher satisfaction levels and encouraging repeat visitation. The Arthur D. Little official added that these technologies will also enable more sustainable operations, from energy use in hotels to mobility and waste systems in major destinations. 'Importantly, the Kingdom's flagship tourism projects — such as Neom, the Red Sea Project, Diriyah, Qiddiya, and New Murabba — are integrating smart systems as a core component of how tourism experiences are crafted, delivered, and continuously improved,' said Nahas. Neom aims to elevate the visitor experience through AI-led personalization and immersive digital engagement. The Red Sea Project similarly integrates smart infrastructure to enable seamless and sustainable guest experiences. The destination is deploying IoT sensors to monitor environmental indicators, utilities, and operational systems across its resorts and natural assets. Diriyah, while rooted in heritage, is incorporating digital heritage documentation and exploring interactive technologies to enhance cultural storytelling — aligning with broader trends in cultural tourism that use immersive tools to enrich historical engagement and visitor education. Nahas added: 'These systems could be equally used to monitor visitor needs, respond to requests, and elevate the visitor experience.' 'Plans also include autonomous electric vehicles, smart utility management, and a centralized digital platform that will allow guests to access accommodation, transportation, and experience bookings.' Salvo also emphasized the transformative role of data and AI. 'By integrating real-time data — from IoT sensors to traveler preferences and even biometric signals — we can deliver experiences that are not just personalized, but truly responsive,' said the Globant official. He added: 'This is how data becomes experience — and how destinations become intelligent, dynamic environments that adapt in real time. It's a win-win: travelers feel seen, and operators gain the insight and agility to manage resources, reduce friction, and elevate every journey.' Nahas said AI is also becoming increasingly prominent in trip planning and customer service, with chatbots offering timely support and tools generating personalized itineraries. According to the Arthur D. Little executive, service robots using AI could be deployed in budget accommodations to handle routine tasks such as cleaning and food delivery, boosting both efficiency and consistency. 'On the infrastructure side, IoT, cloud, and AI systems are being integrated into facilities to monitor and control environmental conditions in real time. This supports sustainability goals by optimizing resource use and maintaining comfort standards, particularly in large-scale developments,' said Nahas. Potential challenges Amid these promising developments, experts also highlighted challenges facing Saudi Arabia in implementing advanced technologies in its tourism sector — including localization gaps. 'Many of the most advanced solutions in areas such as AI, AR/VR, and IoT are currently developed outside the Kingdom. As Saudi Arabia integrates these tools into its tourism offering, collaboration with international partners will be important, alongside efforts to build local capabilities over time,' said Nahas. Highlighting the importance of regulation, the Arthur D. Little executive added that clear guidelines around data governance, cybersecurity, and system standards will be essential to support consistent implementation and long-term alignment with national priorities. Salvo shared similar concerns, emphasizing the need for talent development to support the growing smart tourism ecosystem. He said this requires upskilling programs and international partnerships to close expertise gaps. 'Major tech infrastructure, including nationwide 5G networks, smart airports, and cloud systems, is still rolling out, with delays in full deployment potentially hindering real-time applications like personalized AI tours and immersive experiences in mega-projects like The Red Sea and Neom,' added the Globant official. Despite these challenges, experts told Arab News that smart tourism can grow into a well-integrated part of Saudi Arabia's tourism strategy — provided there is the right coordination and policy framework. 'The pieces are steadily coming into place — with emerging tech adoption readiness jumping to nearly 75 percent in 2025 — and paint a bright future where smart tourism not only overcomes these obstacles but propels Saudi Arabia to lead in innovative, regenerative travel,' concluded Salvo.
Arab News
2 hours ago
- Arab News
PIF's strong financial position fuels Kingdom's economic transformation
The Public Investment Fund has released its annual financial results for 2024, reporting a 25 percent increase in total revenue compared with the previous year, and maintaining a strong and largely unchanged cash balance year over year. Assets under management grew by 19 percent in 2024, reaching $913 billion, with an annualized average portfolio return of 7.2 percent since 2017. Since 2021, cumulative investments in priority sectors have surpassed $171 billion. These financial results highlight strong progress aligned with PIF's forward-looking investment strategy, reinforcing its position as one of the world's largest and fastest-growing sovereign wealth funds. Also, these strong financial results underscore its effective portfolio management, driven by a strategic focus on diversifying its investment base, advancing the Saudi economy, and strengthening global commercial partnerships. PIF's strong financial performance has reinforced its efforts to exceed expectations in delivering on its unique mandate — advancing Saudi Arabia's economic transformation in line with Vision 2030. By focusing on generating sustainable financial returns and diversifying the economy away from oil, PIF has contributed significantly to national development. The financial performance demonstrated substantial growth, underpinned by strong financial foundations and successful portfolio diversification strategies. As of 2024, PIF's portfolio comprises 225 companies, including 103 created and established by the fund. As PIF continues to solidify its position among the world's 10 largest sovereign wealth funds, its portfolio has delivered substantial growth, with assets under management increasing sixfold in 2024 compared with $152 billion in 2015. Notably, throughout 2024, PIF continued to lead with a long-term vision and clear strategic purpose. This is evidenced as PIF has deepened its financial impact by driving forward Saudi Arabia's economic transformation while delivering sustainable financial returns. PIF now accounts for 10 percent of the Kingdom's non-oil economy, with its cumulative real non-oil contribution to gross domestic product reaching $243 billion between 2021 and 2024. The fund continued to advance the development of strategic economic sectors in Saudi Arabia by building national champions, enhancing the technical capabilities of its investment portfolio, promoting localization, and fostering innovation. PIF's 2024 financial results underscore its strategic focus on cutting-edge technologies, including artificial intelligence and automation, which have become integral to its operations. It has succeeded in forming strategic partnerships with innovative companies, investment managers and influential investors, and investing in cutting-edge technology that is shaping the future global economy. In 2024, PIF completed 58 digital projects, launched 15 new applications and automated more than 477 processes, enabling insights, strategy and the creation of economic value. Throughout 2024, PIF strategically expanded its international investment portfolio, harnessing long-term, high-impact capital to deliver sustainable returns and cultivate partnerships in priority global markets. PIF's financial strength and stability received international recognition in 2024, as Moody's upgraded its credit rating to Aa3 from A1 with a stable outlook, and Fitch affirmed its A+ rating, also with a stable outlook — both affirming the fund's robust credit profile and solid financial fundamentals. Leveraging its solid financial foundation, PIF continued to diversify its funding base in 2024, raising $9.83 billion in public debt and $7 billion in private debt markets. In summary, PIF closed 2024 with a solid financial performance, driven by strong assets and healthy returns. It also marked a major achievement in ESG performance, scoring 96 percent on Global SWF's GSR Scoreboard. In 2025, PIF tied for first place globally among 200 sovereign investors, with a score of 100 percent. A study by Brand Finance, the world's leading independent brand valuation company, found PIF to have the most valuable and fastest-growing brand in the world among all SWFs, with an A+ rating. As a catalyst for change, PIF has successfully accelerated growth across 13 targeted strategic sectors, unlocking new opportunities and reshaping the future landscape of Saudi economy, financial and labor markets, and local content development. As a result, PIF managed to create over 1.1 million direct and indirect jobs domestically and globally. In October 2022, PIF launched the Local Content Growth Program with the objective of increasing the local content contribution of the fund and its portfolio companies to 60 percent by 2025. By 2023, local content in PIF's projects had already surpassed 47 percent, up from 40 percent in 2020. Between 2020 and 2023, total spending on local content reached about $106.7 billion. • Talat Zaki Hafiz is an economist and financial analyst. X: @TalatHafiz
Arab News
5 hours ago
- Arab News
Jordan, UK discuss strengthening transport cooperation
AMMAN: Jordanian Minister of Transport Nidal Qatamin met on Saturday with British Charge d'Affaires Hazel Mowbray to discuss expanding cooperation between Jordan and the UK in the transport sector, the Jordan News Agency reported. Qatamin highlighted the importance of UK support in advancing public transport and logistics, which he described as vital to the kingdom's economic development. Mowbray pledged British backing through the International Growth Centre (IGC), an economic research center based at the London School of Economics, in coordination with the Ministry of Planning and International Cooperation, to support priority projects in the sector. Both sides agreed to continue technical and institutional cooperation to achieve Jordan's transport development goals and further strengthen the bilateral partnership.
