The Kingdom of Saudi Arabia’s Fund PIF sees $ 8 billion in mega projects

The Saudi sovereign sovereign wealth Fund witnessed a significant decrease in investments in the so-called “huge projects”, which amount to 8 billion dollars removed at the end of 2024-although the assets subject to management reaches approximately $ 1 trillion, according to its annual report.

Gigaproject Investments decreased by 12.4 % to 211 billion Saudi riyals ($ 56.2 billion). Meanwhile, the assets supervised by PIF increased by 19 % from the end of 2023 to about 913 billion dollars, making it one of the largest and fastest sovereign wealth money on this planet. Gigaproject projects, which include Develop Neom Development $ 500 billion, constituted 6 % of PIF assets in 2024, decreased from 8 % in the previous year.

This justice comes amid the low global oil prices and a growing financial deficit for the Kingdom of Saudi Arabia, whose economy is strongly dependent on oil despite the efforts made to diversify it and significant growth in non -oil revenues.

PIF’s annual revenues have decreased since 2017 to 7.2 % of 8.7 % in the previous year. The Fund-which has great possessions in a group of blue companies such as Uber and TimingAnd it has major mathematical privileges such as LIV GOLF and British Soccer Colric NewCASTLE UNITED – has also seen the expansion of her financing base, raising nearly $ 10 billion in public debt and 7 billion dollars unilaterally.

International investments decreased to 17 % of the portfolio, a decrease from 20 % in the previous year, as the fund sharpened its focus on local investments.

Part of the reason behind AUM’s important PIF jump is thanks to more Saudi oil giant ARAMCO, which is allocated to the box. But analysts notice that if the prices of crude continue to decline, as some predictors in this field expect, the percentage of revenues that the Saudi government and PIF will be able to extract from these oil investments.

It is expected to limit low oil prices and reduce Aramco profits due to low oil demand expectations, from PIF investment funds. Meanwhile, it is expected to increase its investments in high -growth regions such as artificial intelligence, analysts say.

A sleep from the daughters of Saudi Crown Prince Mohammed bin Salman is scheduled to contain a number of cities and future developments that the Kingdom expects will bring millions of new population and a revolution in living and technology in the country. However, budget excesses, operational complications and the global oil market conditions for them He forced the Kingdom to expand Or completely of some of these projects, I told the sources that worked on Neom CNBC.

The cost of Neom was a whole The cost is estimated between $ 500 billion and 1.5 trillion dollars. After many years of unlimited spending, 2024 began to see a sudden shift The Saudi budget deficit grew The price of a barrel of oil decreased much less than what the Kingdom needs to balance its budget.