PIF posts $11bn investment loss for 2022

Saudi sovereign wealth fund, Public Investment Fund (PIF), has reported a US$11 billion loss for its investment activities in 2022.

The results, which were reported by Bloomberg, are in stark contrast to the $19 billion profit posted in 2021.

While the total assets of the PIF rose by just over $100 billion in 2022, from $676 billion to $778 billion, borrowing reached $85 billion.

The fund invested heavily in US stocks in 2022, spending $7 billion on shares in Starbucks, Zoom, Alphabet, Amazon and BlackRock.

It has also acquired significant shares in the gaming industry, including an 8% share in Nintendo.

But the PIF’s most eye-catching investments have been in the sporting arena, taking ownership of UK football club Newcastle United and launching its own international golfing tour, LIV.

However, oil prices have reduced in the last 12 months, from $125 a barrel in May 2022 to the current value of around $78 per barrel. In addition, the kingdom’s foreign investment inflows have dropped by 59% in the last year.

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