Saudi Arabia’s Public Investment Fund (PIF) is considering a $500 million fixed-income allocation to Pimco, primarily targeting Gulf government bonds. This would mark Pimco’s first mandate from the PIF, though no final decision has been made. The PIF, historically focused on equities and private investments, is rebalancing as Gulf sovereign bonds face pressure from the Iran war, which has disrupted energy exports and raised borrowing costs.

Yields on Gulf bonds have surged 121 basis points, with Qatar and the UAE suffering the steepest losses. Pimco already manages funds for SAMA, ADIA, and other regional investors, and has extended billions in private placements to Gulf borrowers since the conflict began. Unlike SAMA, which prioritizes liquidity, the PIF has focused on strategic sectors and global partnerships, including backing funds from BlackRock, Brookfield, and Goldman Sachs.