The Saudi Arabia PIF Foundation sees $ 8 billion in mega projects

The Mammant Saudi Saudi Saudi Sovereign Mamantic Fund was a serious decline in investment in the so-called “Gigaprojects”, which amounted to $ 8 billion at the end of 2024, although under the leadership, they reach almost $ 1 trillion, according to the annual report.

Gigaproject investments decreased by 12.4% to 211 billion Saudi Arabia ($ 56.2 billion). Meanwhile, the assets controlled by the PIF rose 19% from the end of 2023 to approximately $ 913 billion, making it one of the largest and rapidly developing funds for sovereign wealth on the planet. Gig project, which includes futuristic $ 500 billion of the Neom Development, amounted to 6% of PIF assets in 2024, which is compared to 8% over the year.

Writedown comes against the backdrop of lower world oil prices and a growing financial deficit for the Saudi Kingdom, the economy of which depends heavily on oil, despite its diversification efforts and a significant increase in oil income.

PIF admission has dropped to 7.2% from 8.7% since 2017. Fund-which has significant possessions in a number of blue chip companies like Uber and TeslaAnd the basic sports franchises, such as Liv Golf and British Football Club United – also noted the expansion of its financial base, raising almost $ 10 billion in public debt and $ 7 billion in private.

International investments have declined to 17% of the portfolio, which compared to 20% a year when the fund has hone the emphasis on domestic investments.

The part of the cause of the significant PIF jump in AUM is to be more allocated to the Saudi Giant Saudi Fund. But analysts note that if the raw prices continue to fall, as some forecasters are expected, it will be so that the percentage of the income that the Saudi government and PIF government will be able to get from these oil investments may decrease in tow.

It is expected to reduce ARAMCO dividend prices and decrease in oil demand forecasts is expected to limit PIF investment funds. At the same time, analysts are supposed to increase their investment in high growth such as artificial intelligence.

Neom, the new region in Western Saudi Arabia, which is being built from scratch, which is approximately the size of Massachusetts, is part of Vision 2030, which is aimed at diversification of the Saudi economy from oil revenues and the creation of new jobs and industries for the developing young population.

Children of Prince Saudi Crown Mohammed Bin Salman, Neom, are planned to hold a number of futuristic cities and events that awaits the kingdom, bring millions of new residents and revolutionize life and technology in the country. However, budget exceeding, operational complications and world oil conditions made the kingdom scale back Whether some of these projects have been fully attached, the sources that worked on the Neom reported.

The price of Neom overall was It is estimated that it costs from $ 500 billion to $ 1.5 trillion.. After perennials seemingly unlimited costs, 2024 began a sharp shift when Saudi Arabia’s budget deficit has grown And the price of oil has fallen much lower than the kingdom needs to balance their budget.