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RIYADH: Saudi Arabia’s sovereign wealth fund reported strong financial results for 2023, generating SR331 billion ($88.3 billion) in revenue from its diverse investment portfolio, marking an increase of more than 100 percent from 2022.

Demonstrating solid returns and significant progress towards its long-term goals, the Public Investment Fund has published its consolidated financial statements for the year ending 31 December 2023, showcasing its efforts to drive the Kingdom’s economic transformation.

The report, carried out by KPMG, confirmed that the consolidated financial statements accurately reflect the group’s financial position in accordance with International Financial Reporting Standards.

Prepared and published in accordance with IFRS and the listing requirements of the London Stock Exchange, the financial statement discloses the following key figures for 2023:

Revenue: PIF revenue increased to SR 331 billion in 2023, more than double the SR 165 billion in 2022. The telecommunications sector contributed SR 71.35 million, accounting for 30.03% of total revenue.

Profit after tax and zakat: The fund reported a profit of SR 64 billion, compared to a loss of SR 17 billion in the previous year.

Total Assets: Total PIF assets increased by 28%, rising from SR 2.9 trillion to SR 3.7 trillion.

Retained earnings and reserves: These increased by 21% from SR 583 billion in 2022 to SR 707 billion in 2023.

Cash position: At the end of 2023, the cash position was SR 243 billion, an increase of over 30% from SR 187 billion in the previous year.

PIF’s performance in 2023 underscores its role in advancing Saudi Arabia’s economic objectives, demonstrating its commitment to transparency, governance and alignment with international best practices for major financial institutions and sovereign wealth funds.

Covering the period from January 1, 2023 to December 31, 2023, the report highlighted the significant increase in PIF’s market value, driven by several acquisitions and the transfer of part of Aramco’s shares to the body’s portfolio.

The fund’s diversified investment strategy and financial management were also instrumental in achieving these results.

The financial report highlighted PIF’s strategic efforts to diversify its sources of financing through debt instruments. During this period, PIF raised an additional SR 45 billion and secured financing for various acquisition activities in its portfolio.

The PIF used a diverse range of funding sources, including loans, debt instruments and investment returns, as well as government capital infusions and transferred government assets.

Moreover, PIF’s non-investment portfolio grew by 15%, increasing by SR 31 billion to SR 238 billion in 2023. The increase was driven by strong performance across all sectors, particularly in financial services and telecommunications, despite a slight decline in metals and mining profits. sector due to global price declines following exceptional growth in 2022.

PIF’s investment portfolio has also seen significant improvements, recording revenues of SR98 billion in 2023, a stark contrast to the loss of SR41 billion in 2022. This positive recovery was partly due to the turnaround of SoftBank, which moved from a be a source of losses while contributing to the fund’s profits.

The 2023 financial results confirm PIF’s robust financial and investment position, achieving an A1 rating from Moody’s with a positive outlook and an A+ rating from Fitch with a stable outlook. These ratings reflect the fund’s strong financial health and solid global market performance.

KPMG concluded that the consolidated financial statements of the Public Investment Fund for the year 2023 present a fair and accurate picture of the fiscal health of the group. The audit confirmed that PIF adhered to IFRS and the standards issued by the Saudi Organization of Chartered and Professional Accountants.

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