Public Investment Fund Companies in the Saudi Financial Market

The Public Investment Fund (PIF) has been the sovereign investment arm of the Kingdom of Saudi Arabia since its establishment in 1971. It has undergone significant qualitative development since 2015, supported directly by Saudi leadership. The fund's goal is to lead economic transformation and diversify national income sources away from oil, through strategic investments in various sectors both domestically and internationally. In the Saudi financial market (Tadawul), the fund's role stands out as a major investor in leading companies that contribute to driving the national economy by injecting substantial capital and adopting long-term growth strategies. The fund also works to enhance economic sustainability and improve the efficiency of targeted sectors through local and international partnerships, establishing new companies or acquiring significant stakes in existing firms. This vital role makes PIF companies a central element in the dynamics of the Saudi market, increasing investors' desire to monitor their performance and analyze their financial data accurately.

The term Public Investment Fund companies refers to a group of companies listed on the Saudi financial market in which the fund holds significant or controlling stakes. These companies vary between full or partial ownership and cover sectors such as financial services (Tadawul), telecommunications (STC), electricity and energy (Saudi Electricity, ACWA Power), mining, tourism, entertainment, and heavy industries. These companies are characterized by several strengths: First, the institutional support provided by the state through the fund, which enhances their financial stability and ability to expand. Second, their performance is linked to achieving the goals of Vision 2030, reflecting their role in national development. Third, these companies often have government or quasi-government management focused on sustainability and achieving long-term growth. Fourth, they allow investors to access their results and detailed reports through official platforms in PDF format, supporting transparency and deep financial analysis. Ultimately, Public Investment Fund companies form a fundamental pillar in the Saudi economy and local financial markets.

The Public Investment Fund invests in a wide range of vital sectors to achieve economic diversification and capitalize on promising opportunities. Among the most important sectors are: 1) Financial services and market infrastructure, where the fund holds full ownership of the Saudi Stock Exchange (Tadawul). 2) Telecommunications and information technology, through its strategic stake in Saudi Telecom Company (STC). 3) Traditional and renewable energy, by investing in Saudi Electricity Company and ACWA Power. 4) Heavy industries and metals, such as Ma'aden and Hadeed. 5) Tourism and entertainment through mega project development companies like Qiddiya and NEOM. 6) Media and modern technologies, through investments in digital media and emerging technologies. 7) Health and education, by establishing and supporting national companies in these sectors. The fund places special emphasis on sectors that align with the goals of Vision 2030, such as clean energy, the digital economy, and industrial transformation, aiming to enhance local competitiveness and attract foreign investments.

The Saudi Stock Exchange (Tadawul), fully owned by the Public Investment Fund, is the sole entity authorized to regulate stock exchange operations in the Kingdom. It was established as a joint-stock company in 2007 with a capital of 1.2 billion Saudi Riyals distributed over 120 million shares. Since its listing in 2021, the stock has been available for trading within the financial services sector. Tadawul manages the buying and selling of shares, issues official market information, and develops advanced financial products such as futures contracts and derivatives. The price of Tadawul shares ranged between 100 and 150 Riyals in 2024, with a market value between 12 to 18 billion Riyals. The company's net profit in the first nine months of 2025 was approximately 299.4 million Riyals, a decrease of 41% from the previous period, attributed to market liquidity fluctuations. Tadawul continues to expand its financial products and enhance its technological infrastructure, supporting its central role in developing the Saudi financial market and making it more attractive to local and international investors.

Saudi Telecom Company (STC), in which the Public Investment Fund holds a strategic stake of nearly 70%, leads the telecommunications and information technology sector in the Kingdom. The company is listed on the Saudi financial market under the symbol (7010), and its stock price in 2024 ranged between 95 and 120 Riyals, while its market value ranged between 110 and 120 billion Saudi Riyals. STC relies on developing data services and digitization, and has expanded in recent years into fifth-generation (5G) technologies and cloud computing. The price-to-earnings ratio ranged between 20 and 25, with a dividend yield between 4% and 5%, reflecting a stable dividend distribution policy. STC stands out in acquiring emerging technology companies and enhancing partnerships with global entities, in addition to its role in government digital transformation projects. The company faces competition from Mobily and Zain, and seeks to increase its market share by offering integrated digital solutions and innovative services for individuals and businesses.

The Saudi Electricity Company (SEC), listed under the symbol (5110), is the main provider of electricity services in the Kingdom, with the government holding a significant stake through the Public Investment Fund. Its market value ranges between 300 and 350 billion Saudi Riyals, with a stable dividend distribution policy of 3-4%. The company relies on revenues from electricity production and distribution and continues to develop renewable energy projects alongside expanding traditional infrastructure. SEC recorded revenue and net profit growth in 2024, driven by increased domestic demand and improved operational efficiency. The company faces challenges related to the transition to clean energy and the expansion of smart grids, in line with the goals of Vision 2030. Competition in the electricity sector is limited locally, but it is increasing with the entry of renewable energy projects and private sector service providers. SEC remains a strategic player in achieving energy security and diversifying its sources in the Kingdom.

ACWA Power, listed under the symbol (2082), represents the investment face of the Public Investment Fund in the renewable energy and water desalination sector. Its stock price ranged between 18 and 22 Riyals in 2024, with a market value of approximately 40-50 billion Saudi Riyals. ACWA Power focuses on solar and wind energy projects both domestically and internationally, achieving accelerated revenue growth through the completion of major projects in Saudi Arabia, the UAE, Europe, and Asia. The price-to-earnings ratio is around 30, and the company typically does not distribute dividends, as it reinvests profits into new projects. ACWA Power faces competition from regional and global companies, benefiting from the increasing demand for clean energy within the Kingdom's plans for sustainable energy transformation. The company excels in signing new contracts and completing strategic alliances with global firms, enhancing its position in both local and international markets.

In addition to the major companies mentioned, the Public Investment Fund holds stakes in various other companies that support national development plans. These include mining companies (such as Ma'aden), tourism and entertainment companies (Qiddiya, NEOM, Seera Group), media and modern technology companies (Research and Marketing Group), as well as heavy and food industry companies (Hadeed, Academy). These companies contribute to activating new strategic sectors and providing job opportunities, while allowing investors to diversify their financial portfolios. The fund's portfolio reflects a balanced investment between mature sectors and future sectors, combining financial stability with high growth opportunities. The list of these companies is updated periodically, and details can be accessed through the fund's official reports or financial disclosure platforms such as Tadawul and Argaam.

The financial performance of Public Investment Fund companies reflects their strength as engines of the national economy. Companies like Tadawul, STC, and SEC record sustainable growth in revenues and net profits, with stable profit margins and clear dividend distribution policies. Conversely, companies like ACWA Power focus on reinvesting profits into expansion projects, making returns to investors linked to long-term stock price growth. Financial indicators vary among companies: the price-to-earnings (P/E) ratio typically ranges between 10 and 30 depending on the sector and growth, and dividend yields range from 0% (growth companies) to 5% (stable companies). Quarterly and annual company reports in PDF format provide a detailed review of financial performance, including revenues, profits, liquidity, and financial positions, helping investors conduct comprehensive analysis before making decisions.

The Saudi financial market (Tadawul), the Capital Market Authority, and listed company websites provide detailed reports in PDF format about financial performance results and operational developments. Investors and researchers can download these reports from: 1) The official Tadawul website, which displays quarterly and annual company results and disclosure announcements. 2) The websites of listed companies, which provide financial reports, management letters, and performance analyses. 3) The official Public Investment Fund website, which displays the fund's portfolio and investment projects. 4) Argaam, a site specialized in financial analysis and tracking the results of Saudi companies. These documents assist in analyzing financial performance, studying strategies, and comparing companies across different sectors. It is important to rely on official sources to avoid misleading or inaccurate information.

The strategy of the Public Investment Fund relies on long-term investment in vital sectors, aiming to develop leading national companies and enhance the private sector's contribution to the economy. The fund focuses on injecting substantial capital into major projects, supporting innovation, and attracting foreign investments. By increasing its stakes in leading companies or launching new firms, the fund contributes to enhancing market efficiency and increasing liquidity. Additionally, the fund's presence in the ownership structure provides institutional stability and confidence for investors, positively reflecting on the overall market indicators. At the same time, the stock movements of companies owned by the fund are influenced by government announcements and economic policies, necessitating careful monitoring of news and official reports when analyzing any investment opportunity.

Public Investment Fund companies face a range of challenges, the most prominent of which are: adapting to rapid technological transformations, regional and international competition, meeting the requirements of transitioning to a green economy, and pressures from financial market fluctuations. Conversely, these companies enjoy promising growth opportunities, supported by institutional backing, substantial government investments, and national transformation programs. Sectors such as renewable energy, telecommunications, and financial services are growing rapidly, with increasing domestic demand and regional market expansion. Additionally, the fund's mega projects like NEOM and Qiddiya open the door for its companies to benefit from infrastructure contracts, technical services, and digital innovations. The success of these companies depends on their ability to innovate, manage risks, and strengthen local and international partnerships.

Investors can obtain price and performance data for Public Investment Fund companies from several official and reliable sources: 1) The official Tadawul website, which provides real-time stock prices, trading data, and detailed reports on each listed company. 2) The Capital Market Authority (CMA), where performance reports and periodic announcements are published. 3) Argaam, which offers financial analyses and key indicator data. 4) The companies' own websites, which display their financial results and board reports. These sources provide the ability to download financial reports in PDF format, facilitating the study of historical performance and company comparisons. It is important to review the latest data and relate it to the overall economic context for accurate market trend understanding.

The stocks of Public Investment Fund companies are clearly affected by government news and major national projects. When announcements are made regarding expansions in 5G projects, renewable energy, or smart city developments, this reflects on the performance of companies like STC, ACWA Power, and SEC. Additionally, partial privatization trends or the listing of new companies enhance investor confidence and liquidity in the market. Conversely, delays in some projects or changes in regulatory policies may exert pressure on these companies' stocks. Therefore, it is advisable to monitor announcements from the Ministry of Finance, the Ministry of Investment, and the Capital Market Authority, as well as reports from the Public Investment Fund itself, to understand the trends affecting the performance of the fund's owned companies.