Saudi Arabia’s PIF will become the world’s top investor in 2023, with transaction value exceeding $31 billion

Saudi Arabia’s sovereign wealth fund continues to strengthen its investment portfolio, with Saudi Arabia’s sovereign wealth fund becoming the top investor among sovereign wealth funds in the world last year, according to a new report.

Industry specialist Global SWF said in its annual report on Monday that PIFs spent $31.6 billion on 49 deals in 2023, a 33% increase from 2022.

The fund surpassed Singapore’s GIC, which was ranked as the top investor in 2022.

According to the report, along with PIF, the other four Gulf funds that ranked in the top 10 most actively traded last year (Abu Dhabi Investment Authority, Mubadala Investment Company, ADQ and Qatar Investment Authority) were classified as the “Oil 5”. being called.

“In the short period of eight years since its reorganization, the Saudi institution has become a leading national and international institution, advancing Vision 2030 and setting the goal of becoming the world’s largest SWF by 2030,” the report said. Says.

PIF is at the heart of Riyadh’s economic diversification efforts, holding shares in listed and private companies such as Meta and Alphabet.

The fund announced several deals last year in addition to establishing new companies to boost the domestic economy.

In April, it paid $4.9 billion to US gaming company Scopely through its subsidiary Savvy Games Group. In August, it acquired Standard Chartered’s aircraft leasing division through Abilis for $3.6 billion, and in September it agreed to buy Hadeed, the steel division of the Saudi Basic Industries Corporation, for $3.3 billion.

“The various transactions demonstrate the unparalleled bandwidth and reach of PIF and its subsidiaries, forming a wide net to capture the added value of Saudi Vision 2030,” the report said. .

PIF also increased its stake in British luxury car maker Aston Martin to 20.5% to increase investment in the automotive sector.

Last month, the company agreed to take a 49% stake in Rocco Forte Hotels, valuing the luxury group at around 1.2 billion pounds ($1.52 billion).

PIF’s U.S. stock portfolio grew by 18% in 2023 due to appreciation in the value of existing stocks, according to the report. Half of PIF’s U.S.-listed portfolio is in the consumer sector, including $8.1 billion in gaming companies Activision Blizzard, Electronic Arts and Take-Two.

However, despite sovereign wealth funds continuing to invest around the world, total investments in 2023 fell 20% on an annual basis to $124.7 billion amid market volatility, the report said.

The total number of deals also fell 24% over the year to 324 deals, with an average ticket value of $385 million.

The report states: “Despite a decline in trading by Singapore funds, the ‘Oil Five’ (the five most active funds in the Middle East) continue to gain market share and drive SWF activity around the world. “

Mubadala, who has assets worth 1.01 trillion dirhams ($276 billion), continues to increase his investments in various sectors around the world.

Last year, the company invested in US-based Aligned Data Centers as it continues to expand its global digital infrastructure portfolio.

In April, Mubadala and Canadian pension fund British Columbia Investment Management Corporation became anchor investors in Cube Highways Trust, an Indian infrastructure investment trust.

It also partnered with Alder Properties and US alternative investment manager Ares Management to jointly invest $1 billion in a new private real estate credit platform in Europe, developing opportunities in key markets in the region.

According to the report, assets under management of GCC countries’ sovereign wealth funds will reach a historic peak of $4.1 trillion in 2023, and although investment activity is lower than in 2022, five oil companies will The company led the way, reaching $82.3 billion.

Sovereign investors also increased their investment in green assets to a record $26.1 billion, with Gulf sovereign wealth funds responsible for almost half of that amount, the report said.

Updated: January 1, 2024, 12:44 p.m.