Saudi Public Investment Fund Explores New Fundraising Options

The Public Investment Fund of Saudi Arabia is exploring alternative fundraising methods to expand its investment portfolio without requiring new capital injections from the state. The sovereign wealth fund, which manages more than $900 billion in assets, is considering the securitization of cash streams from portfolio companies, raising debt through international bond markets, and utilizing export credit agencies.

This strategic shift follows a liquidity crunch among Saudi lenders and a stagnant Gulf IPO market. Economic pressures have intensified due to the impact of the Iran war and Houthi attacks in Yemen, contributing to a projected 3.6% contraction in Saudi Arabia's real GDP this year.

As part of a 2026-2030 strategy focused on value realization, the fund has already begun divesting stakes in mature assets. Recent transactions include the sale of a 49% stake in the AI firm Humain to Aramco for $2.6 billion and the sale of a 70% stake in the Al Hilal soccer club to the Kingdom Holding Company.