The consolidated financial statements of the Public Investment Fund that the book value of investment properties rose to 80.49 billion riyals by the end of 2025, compared to 65.47 billion riyals in 2024, marking an annual growth rate of 23%.
The portfolio is distributed among land valued at 29.77 billion riyals, buildings valued at 33.97 billion riyals, and real estate projects under development valued at 16.75 billion riyals, reflecting the diversity of assets between existing properties generating operating income and others being developed to drive future growth.
Market Value Exceeds 300 Billion Riyals
The financial statements highlight the significant difference between the book value and the fair value of the real estate portfolio, with the fair value of investment properties reaching approximately 300.81 billion riyals by the end of 2025, compared to 250.82 billion riyals in the previous year—an increase of nearly 50 billion riyals in a single year.
As a result, the market value of the portfolio exceeds its book value by more than 220 billion riyals, reflecting the significant economic value of real estate assets, particularly land located in strategic areas where major development projects are underway.
Land accounts for the largest share of the portfolio’s fair value, reaching 234.38 billion riyals, compared to 45.40 billion riyals for buildings and 21.03 billion riyals for real estate projects under development, confirming that land serves as the foundation for long-term urban, tourism, and economic projects.
Diversity of the Real Estate Investment Strategy
Financial disclosures reveal the diversity of the fund’s strategy in managing its real estate assets, with the value of properties held to generate rental income reaching approximately 46 billion riyals, while the value of properties held for capital gains reached 10.9 billion riyals. The fund also owns properties valued at 23.5 billion riyals for which the final use has not yet been determined, with expectations that they will be utilized in future development projects, giving the fund flexibility in balancing the generation of current revenue with capitalizing on future asset appreciation.
Rise in Real Estate Revenues
The performance of the real estate portfolio is not limited to asset value growth but extends to the generation of increasing operating revenues. Direct revenue from real estate activities reached approximately 5.72 billion riyals in 2025.
Rental income from investment properties also rose to 2.96 billion riyals, compared to 2.20 billion riyals in 2024, representing growth of approximately 35%.
Conversely, the cost of sales for land and real estate units stood at approximately 2.07 billion riyals, reflecting the Fund’s diversified activities across development, sales, leasing, and real estate asset management.
Expansion in Development Projects
In addition to investment properties, the Fund continued to increase its investments in development projects, with the value of properties under development classified as inventory rising to 17.57 billion riyals by the end of 2025, compared to 9.57 billion riyals in the previous year.
The value of completed development properties also reached approximately 6.1 billion riyals, reflecting the accelerated implementation of projects and the conversion of land into real estate, tourism, and investment products that represent future sources of income.
A real estate portfolio exceeding 300 billion riyals
Although the fair value of the real estate portfolio exceeded 300 billion riyals, the financial statements clarified that this figure does not include all strategic land holdings owned by the Fund.
They noted that the fair value of some land parcels located within major national projects—most notably NEOM, the Red Sea, and Al-Qiddiya—could not be reliably measured due to their vast size and the phased nature of their development.
These projects include the NEOM project, which spans an area of approximately 26,387 square kilometers, the Red Sea project, which covers an area of approximately 37,493 square kilometers, and the Qiddiya project, which covers an area of approximately 367 square kilometers.
This means that the true economic value of the real estate assets may exceed the reported figures as development progresses and the final uses of these lands become apparent.
Companies Leading Urban Transformation
The Public Investment Fund continues to strengthen its presence in the real estate development market through an extensive network of subsidiaries.
In 2025, the Fund increased its ownership stake in Emaar Economic City to 55.55%, making it a subsidiary, and retained its majority stake of 64.58% in Saudi Real Estate Company.
The PIF wholly owns a number of the Kingdom’s largest real estate development companies, including NEOM, Red Sea Global, Qiddiya Investment Company, Roshen Group, Al-Dir’iya Company, Central Jeddah Development Company, New Square Development Company, King Abdullah Financial Center Management and Development Company, and Al-Soudah Development Company.
It also continues to diversify its real estate investments outside the Kingdom through ownership of a number of real estate companies in the United States.
Flexible Financial Management
As part of the portfolio’s financial management, the Fund recorded impairment losses under the "Property, Plant, and Equipment" line item for the hospitality and real estate cash-generating unit amounting to 20.72 billion riyals during the year.
Conversely, the fund used investment properties with a book value of 4.18 billion riyals as collateral to secure long-term Islamic financing, reflecting the use of assets to enhance financial flexibility.
