Saudi Arabia's Public Investment Fund is exploring new financing arrangements, including securitisations and portfolio company stake sales, as the sovereign wealth fund seeks to attract private capital and reduce its reliance on direct equity funding, according to a report by Reuters.
The fund, which manages more than $900bn in assets, is considering securitising cash flows from portfolio companies alongside selling stakes in mature businesses and raising external financing for younger investments. The discussions remain at an early stage, with no details available on potential transaction sizes or the companies involved.
The proposals form part of PIF's 2026–2030 strategy, which places greater emphasis on generating returns from existing investments and increasing private sector participation in Saudi Arabia's economic transformation. The shift follows nearly a decade of substantial investment in real estate, technology, infrastructure and other sectors under the kingdom's Vision 2030 programme.
However, efforts to attract external investors have encountered challenges, including valuation disagreements and concerns over control of strategic assets. A slowdown in Gulf IPO activity, tightening liquidity among Saudi banks and economic disruption linked to the Iran conflict have further complicated fundraising. PIF's annualised shareholder return since 2017 declined to 5.8% at the end of 2025, compared with 7.2% a year earlier.
The fund has already pursued several transactions aimed at attracting additional capital. Kingdom Holding acquired a 70% stake in Saudi football club Al Hilal, while PIF is exploring a minority stake sale in Newcastle United. It has also completed the sale of a 49% interest in AI company Humain to Saudi Aramco, which will inject $2.6bn into the business this year.
Research firm Global SWF said the scale of PIF's domestic investment portfolio means future expansion cannot depend indefinitely on new equity contributions from the sovereign wealth fund. Its evolving strategy will require portfolio companies to become increasingly financially self-sufficient, generating cash flows and securing their own financing to support growth.
