Finance
Saudi Wealth Fund Annual Profit Tumbles 60% as High Rates, Inflation Bite
Published by Global Banking & Finance Review®
Posted on June 30, 2025
2 min readLast updated: January 23, 2026
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Saudi Arabia's wealth fund profit fell 60% due to high rates and inflation, affecting Vision 2030 projects.
Saudi Arabia's Wealth Fund Sees 60% Drop in Annual Profit Amid High Rates
By Federico Maccioni and Hadeel Al Sayegh
DUBAI (Reuters) -Saudi Arabia's sovereign wealth fund's assets exceeded $1 trillion in 2024, but its net profit slumped 60% from a year earlier, it reported on Monday, hurt by high interest rates and inflation as well as impairments on some projects.
The Public Investment Fund's net profit fell to 25.8 billion riyals ($6.9 billion), it said in a statement, adding that impairments primarily related to changes to operational plans and increases in budgeted costs.
The PIF is steering Saudi Arabia's ambitious economic agenda aimed at weaning the Gulf country's economy off oil.
Under the plan, dubbed "Vision 2030", the kingdom has poured hundreds of billions of dollars through the PIF into projects including NEOM, a massive urban and industrial development project nearly the size of Belgium to be built along the Red Sea coast.
"The prioritisation of some projects and the extension in the timelines of some giga projects could have been a factor for the impairments," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
"The rising cost of projects has also been a key challenge, and a factor behind the recalibration of the investment programme," she added.
Total assets under management rose 18% to 4.321 trillion riyals from 3.664 trillion riyals a year earlier, it said.
With a portfolio of investments ranging from date farms to multinational conglomerates, the PIF's sources of income include dividends from key portfolio companies including oil giant Saudi Aramco and the country's biggest lender Saudi National Bank.
It reported net profit of 64.4 billion riyals for 2023 in its consolidated statement on Monday.
However, its comprehensive income statement showed that the 138.1 billion riyals reported for 2023 in July last year had swung to a loss of 140 billion riyals this year. A comprehensive income statement includes items such as unrealised gains and losses as well as the change in value of some of a company's assets.
It said cash remained steady at 316 billion riyals, while group loans and borrowing increased slightly to 570 billion riyals.
($1 = 3.7502 riyals)
(Reporting by Federico Maccioni and Hadeel Al Sayegh in Dubai; additional reporting by Pesha Magid in Riyadh; Editing by Emelia Sithole-Matarise)
Key Takeaways
- •Saudi wealth fund's profit fell 60% in 2024.
- •High interest rates and inflation impacted profits.
- •PIF's assets exceeded $1 trillion.
- •Vision 2030 projects face recalibration.
- •Saudi Aramco dividends contribute to income.
Frequently Asked Questions about Saudi wealth fund annual profit tumbles 60% as high rates, inflation bite
1What was the net profit of Saudi Arabia's wealth fund?
The Public Investment Fund reported a net profit of 25.8 billion riyals ($6.9 billion) for the year.
2What factors contributed to the decline in profit?
The profit slump was attributed to high interest rates, inflation, and impairments related to changes in operational plans.
3How much did the assets under management increase?
Total assets under management rose 18% to 4.321 trillion riyals from 3.664 trillion riyals a year earlier.
4What is the purpose of the Public Investment Fund?
The PIF is steering Saudi Arabia's economic agenda to reduce dependence on oil through various investments and projects.
5What is the Vision 2030 plan?
Vision 2030 is an ambitious plan aimed at diversifying Saudi Arabia's economy, with significant investments in projects like NEOM.
