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DUBAI — Saudi Arabia’s Public Investment Fund recorded a $36.8 billion profit in 2023, in stark contrast with a $15.6 billion loss a year earlier, the sovereign wealth fund’s annual report published last Monday showed. The fund did not disclose the breakdown of its revenues, or geographies, but assets held in the Gulf kingdom and abroad, as well as investment activities, generated $88 billion in revenues in 2023, which is two times more than in 2022.

The annual report also highlights a trend in the trade-off between domestic and international investments. PIF’s investments in Saudi Arabia surged to 76% of assets under management in 2023, from 67% a year earlier. And although capital allocated to international investment grew by 14.5% in total value, it is two percentage points less than in 2022 in terms of share of total assets. The PIF strategy, centered on domestic priorities to fast-track Saudi Arabia's economic diversification, differs from the approach of other sovereign wealth funds, which often favor investing their assets abroad.  

Also, the fund has divested massively from its treasury pool, which includes various debt securities. PIF’s capital allocated to treasury has dropped from $106 billion in 2021 to $19 billion in 2023 as the fund shifted capital into riskier projects, particularly domestically.