Saudi Arabia’s Public Investment Fund (PIF) reported a 60% decline in net profit for 2024, despite its total assets surpassing the $1 trillion mark.
The drop was attributed to rising interest rates, inflation, and asset impairments across various projects.
Net profit fell to 25.8 billion riyals ($6.9 billion), down from 64.4 billion riyals a year prior.
Vision 2030 Projects Face Recalibration
The fund plays a central role in Saudi Arabia’s Vision 2030 plan, aimed at diversifying the kingdom’s economy away from oil.
Investments in mega-projects like NEOM—a futuristic city the size of Belgium—have absorbed massive resources.
Monica Malik, chief economist at Abu Dhabi Commercial Bank, noted that delays and budget adjustments have likely contributed to asset impairments.
“The rising cost of projects has also been a key challenge, and a factor behind the recalibration of the investment programme,” she said.
Assets Grow Amid Shifting Strategy
Despite the profit decline, the PIF’s assets under management climbed 18% year-over-year to 4.321 trillion riyals.
The fund draws income from a broad investment portfolio, including stakes in Saudi Aramco and the Saudi National Bank.
Its consolidated income statement showed a comprehensive loss of 140 billion riyals, a significant reversal from the previously reported 138.1 billion riyals gain.
Comprehensive income accounts for unrealized gains, losses, and asset value fluctuations, offering a fuller picture of financial health.
Debt and Cash Positions Stable
Cash holdings remained steady at 316 billion riyals.
Meanwhile, total loans and borrowing rose slightly to 570 billion riyals.
The report suggests that while Vision 2030 remains a strategic priority, project execution timelines may stretch further due to cost pressures and shifting market conditions.