Saudi Arabia’s PIF Raises $7b from Murabaha Credit Facility

The Saudi Arabia Public Investment Fund (PIF) has closed its first Murabaha credit facility, raising $7 billion, as part of its medium-term capital-raising strategy. 

The funding was backed by a diverse syndicate of 20 international and regional financial institutions.

Fahad AlSaif, head of the Global Capital Finance Division and investment strategy and economic insights division at PIF, said the Murabaha credit facility highlights the flexibility and depth of the company’s financing strategy.

The latest facility complements PIF’s sukuk issuances over the past two years, further diversifying its funding portfolio.

The sovereign wealth fund relies on four primary sources of funding: capital injections from the government, government asset transfers, retained earnings from investments, and loans and debt instruments.