The latest
Saudi Arabia’s Public Investment Fund (PIF), the cornerstone of Crown Prince Mohammed bin Salman’s Vision 2030 strategy, is under increasing pressure after its latest annual report showed slower investment growth at a time when the kingdom faces rising spending commitments.
According to The Wall Street Journal, the fund’s assets have reached roughly $1.2 trillion, but much of that growth has been driven by government capital injections and new borrowing instead of investment performance, complicating its goal of reaching $2 trillion in assets by 2030.
Details
- PIF’s assets have grown by about $532 billion since 2021, but more than $340 billion came from government transfers, largely through additional Saudi Aramco shares. Another $107 billion was raised through loans and bond issuances.
- The fund reported $17 billion in net profit for 2025 and more than $90 billion in cash reserves, saying its financial position remains strong enough to support its long-term investment strategy.
- PIF wrote down $12.4 billion in capital investments during 2025, following $17 billion in write-downs the previous year, reflecting a reassessment of several projects.
- The fund has begun shifting its strategy toward sectors such as artificial intelligence, tourism and advanced technologies, while scaling back or restructuring several megaprojects whose costs and timelines have come under scrutiny.
- Among the investments drawing criticism are its multibillion-dollar commitment to SoftBank’s Vision Fund, its spending on LIV Golf, and the restructuring of parts of the NEOM development, where several projects have reportedly been delayed or reduced in scope.
- Analysts say the recent Israel-Iran conflict is likely to increase Saudi spending on defense and strategic infrastructure, including pipelines and rail networks designed to strengthen the kingdom’s economic resilience.
Background
Established in 1971, the Public Investment Fund became the main investment vehicle behind Saudi Vision 2030 after the reform program was launched in 2016. The fund was tasked with diversifying the economy beyond oil through investments in tourism, technology, industry, entertainment and large-scale domestic developments.
Over the past several years, PIF has become one of the world’s largest sovereign wealth funds. However, its rapid expansion has relied heavily on government asset transfers and increased borrowing while Saudi Arabia continues to balance lower oil revenues with ambitious development spending.
What to watch
Investors will be watching whether PIF can improve investment returns while reducing its dependence on government funding and debt. Further asset sales, public listings of portfolio companies and additional revisions to major projects could determine whether the fund remains on track to achieve its 2030 target.
