The Value of Saudi Arabia's Public Investment Fund Reaches $600 Billion

On Sunday, the Public Investment Fund of Saudi Arabia announced in its annual report for 2022 that its asset value has surpassed 2 trillion and 230 billion Saudi riyals (nearly $600 billion). Last year, the fund reported its assets for 2021 as 1 trillion and 980 billion Saudi riyals. This year's report highlights an 8% return for shareholders, the establishment of 25 companies, and the allocation of 120 billion riyals to strategic domestic sectors. According to the report, 23% of the managed assets are in the form of foreign investments, 68% in domestic investments, and the remainder in treasury. Additionally, 17% of the assets are managed externally and 83% domestically. The Public Investment Fund is a tool for Mohammed bin Salman, the Saudi Crown Prince, to advance his economic agenda and reduce the country's dependence on oil. The report also mentions the expansion of three subsidiary offices of the fund in London, New York, and Hong Kong, aligning with its continuous growth and positioning as a 'preferred partner for global investors.' In February of last year, Mohammed bin Salman announced the transfer of 4% of shares from the state-owned oil and gas producer Saudi Aramco, valued at $80 billion, to the fund. In April, another 4% of Aramco shares, also valued at $80 billion, was transferred to the 'Sanabel Investments' company, a subsidiary of the Public Investment Fund. The decrease in production by 'Saudi Arabia and Russia' has led to a significant increase in crude oil prices over six weeks. In competition with Saudi Arabia, Abu Dhabi has initiated the construction of one of the largest film production centers in the world.