Saudi PIF named world’s most active SWF in 2025

Saudi Arabia’s Public Investment Fund (PIF) was the world’s most active sovereign wealth fund in 2025 by investment spending, deploying $36.2bn over the year, according to advisory and research firm Global SWF.

The figure marks an 81% increase from 2024, a year in which the fund focused more heavily on domestic investments to support the Kingdom’s drive to develop new industries and accelerate economic diversification under Vision 2030, according to Alriyadh newspaper.

Landmark acquisition drives surge

The sharp rise in spending was largely driven by a $28.8bn acquisition of US-based video game company Electronic Arts, which gave the PIF an overwhelming majority stake. The deal, among the largest global transactions in the digital entertainment sector, sent ripples through technology and gaming industries.

Shareholders of the California-headquartered company approved the deal last week, giving the fund a 93% stake, including its existing holding.

Pivot to global opportunities

While 2024 was marked by a strong domestic focus, 2025 reflected a pivot towards global investments, in line with Saudi Arabia’s aim to transform the fund into a $3tn investment powerhouse by 2030.

With assets exceeding $1.15tn, the fund has already met its 2025 targets, having surpassed the $1tn mark ahead of schedule, as forecast by its governor, Yasir Al Rumayyan.

Regional competition remains strong

Despite leading global sovereign funds in investment spending, regional competition was significant. The UAE ranked second through Mubadala Investment Company, which invested $32.7bn in 2025, up nearly 12% year-on-year across around 40 transactions in 10 countries.

Collectively, Gulf sovereign wealth funds—including the Abu Dhabi Investment Authority, ADQ, Dubai Investment Corporation, Kuwait Investment Authority, and Qatar Investment Authority—deployed $126bn in 2025, accounting for 43% of total global sovereign investment spending, according to the report.

Global rankings and portfolio focus

In terms of overall size, the PIF now ranks fifth globally, with assets of $1.15tn, according to the Sovereign Wealth Fund Institute. It trails:

1. Norway’s Government Pension Fund Global – $2.04t
2. China’s State Administration of Foreign Exchange – $1.69t
3. China Investment Corporation – $1.56t
4. Abu Dhabi Investment Authority – $1.18t

The fund’s portfolio remains domestically oriented, with around 80% of assets invested within Saudi Arabia and 55% allocated to alternative assets—a strategy contrasting with global peers such as Norway’s fund, which has no domestic exposure.

Finance strategy and debt management

Separately, Saudi Arabia’s Minister of Finance and Chairman of the National Debt Management Center, Mohammed Al Jadaan, approved the Kingdom’s borrowing plan for the 2026 fiscal year.

The plan anticipates SR217bn ($57.9b) in financing needs, covering a projected budget deficit of SR165bn and debt principal repayments of about SR52bn. The strategy aims to maintain debt sustainability, broaden the investor base, and diversify funding sources through bonds, sukuk, loans, and alternative financing mechanisms, including infrastructure and project finance, all within carefully designed risk-management frameworks.

Digital infrastructure expansion

Saudi Arabia continues to expand its digital infrastructure, recently launching the world’s largest Tier IV government data centre, Hexagon, in Riyadh. With a capacity of 480 megawatts and spanning more than 30 million sq ft, the centre supports Saudi Arabia’s ambitions in artificial intelligence and digital transformation, reduces reliance on oil, and strengthens long-term economic resilience.

Central role in Vision 2030

Established in 1971, the PIF remains central to Vision 2030, deploying sovereign capital across sectors from technology and tourism to infrastructure and real estate, as Saudi Arabia reshapes its economy and deepens its global market footprint.

Story by Gulf News