Despite the jump in revenues of the Saudi Public Investment Fund by more than 31% last year, it turned into a loss due to book losses in some of its investment activities of more than 41 billion riyals, under pressure from the decline in global stock prices.
By the end of 2022, the revenues of the sovereign fund of the Kingdom increased to more than 206 billion riyals, from about 157 billion riyals a year ago. However, the fund concluded the year with a net loss of 14.7 billion riyals (the US dollar is equivalent to 3.75 Saudi riyals), according to its consolidated financial statements submitted to green bond holders. which was reviewed by the “East Economy”.
The fund was making profits from investment activities worth 71 billion riyals in 2021 when stock markets rebounded in the wake of the Corona pandemic, achieving a return on investment of 25%, largely in line with the return achieved by the US “Standard & Poor’s 500” index for the same period.
The fund manages a portfolio of $35.6 billion in US stocks, including stakes in “Lucid” for electric cars, the popular transportation application “Uber”, and “Active Blizzard” for electronic games, which Microsoft is finalizing to acquire for more than $ 68 billion.
headwind
According to the data, the fund’s revenues from financial services and banks grew by about 33% on an annual basis, to reach 47.6 billion riyals. While the telecommunications sector represented the highest item in terms of revenues, with 66 billion riyals. While the mining activities witnessed the most prominent performance, increasing by more than 50% to reach 40 billion riyals.
It was also remarkable that the revenues of the information technology sector, which represents a strategic focus for the Fund, jumped by about 300% to 4 billion riyals.
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However, unrealized book losses in continuing operations had a negative impact on net revenues, which declined by about 27.5%, on an annual basis, to 165 billion riyals, which is a reflection of the difficult global market conditions that faced the fund in the second year of its new strategy, which extends between 2021 and 2025.
2023-07-13 14:48:53
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