Saudi Wealth Fund Takes $15.6 Billion Hit From SoftBank and Tech - Bloomberg
Saudi Arabia’s sovereign wealth fund reported a $15.6 billion comprehensive loss for 2022 after the value of its investments in SoftBank Vision Fund plunged and other tech ventures were hit by a market downturn.
The Public Investment Fund, or PIF, made income of $25.4 billion the year before, according to an annual financial report published Sunday.
The PIF, which is chaired by Crown Prince Mohammed bin Salman, significantly increased the proportion of its assets dedicated to Saudi stocks last year, from 24% to 32%. It also reduced from 20% to 10% the portion put toward International Strategic Assets, a portfolio which includes English football club Newcastle United FC and a Blackstone Group LP fund investing in US infrastructure.
The growth in local-stock investments was largely propelled by a transfer of 4% of energy giant Saudi Aramco to the PIF in February 2022. That stake is worth around $80 billion.
The PIF is a key part of the government’s push to diversify from oil. The crown prince is using it to invest tens of billions of dollars in everything from tourism to electric-vehicle and sports projects in the kingdom.
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