Prime Highlights:
Saudi Arabia’s Public Investment Fund (PIF) aims to reach $2 trillion in assets under management (AuM) by 2030, making it the second-largest sovereign wealth fund globally.
PIF’s projected AuM will represent 10.5% of the global sovereign wealth fund assets, which are expected to total $19 trillion by 2030.
Key Background:
Saudi Arabia’s Public Investment Fund (PIF) is set to become the world’s second-largest sovereign wealth fund by 2030, with assets under management (AuM) expected to reach $2 trillion, according to a new report from Global SWF. This growth would see the PIF more than double its current AuM of $925 billion, securing a position ahead of its current ranking of sixth globally. By 2030, PIF’s AuM is projected to represent 10.5% of the global sovereign wealth fund sector, which is anticipated to total $19 trillion.
Diego Lopez, founder and managing director of Global SWF, emphasized the importance of PIF’s significant capital base in attracting global financial institutions. He noted that such a strong financial position provides PIF with a key role in driving economic development, drawing international partnerships and investments.
Achieving its $2 trillion target will require PIF to adopt a multi-faceted strategy. This includes utilizing allocations from Saudi Arabia’s oil revenues, issuing debt, and generating returns from strategic investments. Lopez highlighted the importance of ensuring that the fund’s capital base remains sustainable and resilient to fluctuations in oil prices.
PIF’s investment strategy has seen a strong performance, with a 6.9% annualized return from 2013 to 2022, outperforming the sovereign wealth fund average of 5.7%. Significant investments include high-growth sectors such as digitalization, renewable energy, AI, and infrastructure. In 2024, PIF’s notable investments included a $3 billion stake in Saudi telecom company TAWAL, and a $2.16 billion acquisition of a 40% stake in the UK’s Selfridges.
Furthermore, PIF’s commitment to diversifying its funding sources is exemplified by its $7 billion Murabaha credit facility, completed in January 2025, which will support its capital needs for global and domestic investments. Despite challenges from domestic mega-projects, the PIF’s ability to attract global partnerships positions it as a major player in reshaping both Saudi Arabia’s economy and global investment trends. As global sovereign wealth funds surpass $13 trillion in AuM, the GCC region, including Saudi Arabia, continues to garner heightened international attention, particularly as funds in the region increasingly focus on emerging markets.
