Saudi PIF Weighs New Financing Options, Reuters Reports, Citing 3 Sources
Key Facts
Saudi Arabia’s Public Investment Fund is weighing new options to raise financing as it seeks to continue growing its investments without injecting more of its capital, according to 3 sources cited by Reuters in a report published on 10 November 2026. The options include securitizing cash flows from some portfolio companies, as well as selling stakes in mature assets to provide funds for newer or smaller companies. It was not clear which companies could be involved or the potential size of the transactions. The sources said the fund was considering multiple avenues, without that meaning a final decision had been made on any of them. The report comes as the fund’s stated strategy moves toward linking the financing of portfolio companies’ growth to a growing share of its investments reaching maturity.
One option under consideration is securitizing cash flows from some portfolio companies, allowing financing to be raised against future revenues. The sources did not identify the companies involved in this option or cite a potential size for any transaction. The fund is also considering selling stakes in mature assets and redirecting the proceeds to smaller or newer companies, according to one source. This reflects a view of using existing assets to finance the growth of other companies in the portfolio. But this approach remains among the options under consideration, according to the report, and does not indicate that any sale or securitization has taken place.
Other options include reducing stakes in listed assets, selling bonds to international investors, and borrowing from export credit agencies. One source said tight liquidity among Saudi lenders and subdued listings could encourage the fund to expand its financing strategy. In potential investment discussions involving some portfolio companies, valuation gaps and disagreements over ultimate control of assets have emerged as obstacles to completing investments, according to the sources. These obstacles highlight the challenges of reconciling the value of assets as envisioned by their owners with what investors will accept, as well as agreeing on control arrangements. The report did not identify the companies or discussions in which those disagreements arose.
The fund referred Reuters to its strategy, which says financing for the growth of portfolio companies will evolve as the fund advances through its current phase and a growing share of its investments matures. Its description said that “financing for the growth of portfolio companies is expected to evolve” as they mature. The fund did not comment on the securitization plans or stake-sale discussions cited in the report. The 2026–2030 strategy, approved by the board on 15 April 2026, lists maximizing financial returns, improving investment efficiency and increasing private-sector participation among its priorities. The fund organizes its investments into Vision, Strategic and Financial portfolios, according to its strategy presentation.
The fund says its financing sources include dividends, retained earnings and investment monetization, alongside loans, debt instruments and government-related sources. The debt instruments it cites include conventional bonds, sukuk and green bonds. It also says debt issuance decisions take into account financing needs, investment plans, liquidity position, debt maturities, market conditions, demand and pricing. On 3 November 2026, the fund announced it had secured credit facilities worth 3 billion dollars, equivalent to 11.25 billion riyals, guaranteed by Italy’s export credit agency “SACE.” This is separately announced financing from the options cited in the Reuters report, which did not mention the completion of any new transaction among them.
The fund’s published figures on its 2026–2030 strategy provide background on the scale of its portfolio and investment activity. It said assets under management had risen from 150 billion dollars in 2015 to more than 900 billion dollars, and that annual shareholder returns had exceeded 7% since 2017. It also said it invested more than 199 billion dollars in new projects in Saudi Arabia during 2021–2025, and that it and its portfolio companies spent more than 157 billion dollars with the local private sector during 2021–2024. In its 2025 annual report, annual shareholder returns stood at 5.8%, compared with 7.2% at the end of 2024. These figures show the scale of investment managed under the strategy, while any of the financing options cited in the latest report remain under consideration, according to the sources.