RIYADH: Saudi Arabia’s sovereign wealth fund reported strong financial results for 2023, achieving revenues of 331 billion Saudi riyals ($88.3 billion) from a diversified investment portfolio, recording more than 100 percent growth from 2022.
The Public Investment Fund presented its consolidated financial statements for the year ending Dec. 31, 2023, showing strong revenues and significant progress towards long-term goals, and highlighting its efforts to drive Saudi Arabia’s economic transformation.
A report conducted by KPMG confirmed that the consolidated financial statements accurately reflect the group’s financial position in accordance with International Financial Reporting Standards.
The financial statements, prepared and published in accordance with IFRS and the listing requirements of the London Stock Exchange, show the following key figures for 2023:
Revenues: PIF’s revenues will surge from SR165 billion in 2022 to SR331 billion in 2023, more than double what it was in 2022. The communications sector brought in revenues of SR71.35 million, accounting for 30.03% of total revenues.
Profit after tax and zakat: The fund reported a profit of SAR 64 billion, compared with a loss of SAR 17 billion a year earlier.
Total assets: PIF’s total assets increased by 28% from SR2.9 trillion to SR3.7 trillion.
Retained earnings and reserves: These increased by 21% from SAR 583 billion in 2022 to SAR 707 billion in 2023.
Cash Balance: Cash balance at the end of 2023 was SAR 243 billion, up more than 30% from SAR 187 billion a year ago.
PIF’s performance in 2023 highlights its role in advancing Saudi Arabia’s economic objectives and demonstrates the country’s commitment to transparency, governance and alignment with international best practices for major financial institutions and sovereign wealth funds.
The report, which covers the period from Jan. 1, 2023 to Dec. 31, 2023, highlighted the significant increase in PIF’s market value due to several acquisitions and the transfer of some Aramco shares to PIF’s portfolio.
The fund’s diversified investment strategy and financial management also played a key role in achieving these results.
The financial report highlights PIF’s strategic efforts to diversify its funding sources through debt instruments. During the period, PIF raised an additional SAR 45 billion to fund various acquisition activities within its portfolio.
PIF utilized diversified sources of funding, including loans, debt securities, investment income, government capital injections and transfers of government assets.
In addition, PIF’s non-investment portfolio is set to grow by 15 percent, increasing by SAR 31 billion to SAR 238 billion in 2023. This growth was driven by strong performances across the financial services and communications sectors in particular, despite a slight decline in revenues from the metals and mining sector due to a fall in global prices after an exceptional rise in 2022.
PIF’s investment portfolio has also seen a significant improvement, recording a profit of SAR 98 billion in 2023, as opposed to a loss of SAR 41 billion in 2022. This turnaround is largely due to the recovery of SoftBank, which has gone from being a loss-making source to contributing to the fund’s profits.
PIF’s 2023 financial results confirm its strong financial and investment position, earning it an A1 rating with a positive outlook from Moody’s and an A+ rating with a stable outlook from Fitch. These ratings reflect the Fund’s strong financial health and solid performance in global markets.
KPMG concluded that PIF’s consolidated financial statements for the year 2023 fairly and accurately represent the group’s financial health. The audit confirmed that PIF complies with IFRS and standards issued by the Saudi Arabian Institute of Certified Public Accountants.
