Saudi PIF enters ‘post-trillion’ era with pivot from scale to substance 

Saudi PIF enters ‘post-trillion’ era with pivot from scale to substance 
According to Global SWF, the sovereign wealth fund, which recently announced an 18 percent increase in assets under management to SR4.32 trillion ($1.15 trillion) in 2024. Shutterstock
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Updated 07 July 2025
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Saudi PIF enters ‘post-trillion’ era with pivot from scale to substance 

Saudi PIF enters ‘post-trillion’ era with pivot from scale to substance 
  • PIF’s net profit down 60% to SR26 billion
  • To address these challenges, it has undertaken a series of strategic shifts

RIYADH: Saudi Arabia’s Public Investment Fund has surpassed $1 trillion in assets, marking a global milestone — but the organization is now pivoting from rapid expansion to a focus on solvency, strategic discipline, and sustainable long-term returns. 

According to Global SWF, the sovereign wealth fund, which recently announced an 18 percent increase in assets under management to SR4.32 trillion ($1.15 trillion) in 2024, is now prioritizing “solvency over scale” and “substance over show.” 

This evolution reflects a broader recalibration of Vision 2030’s investment engine, one that balances domestic megaproject ambitions with liquidity concerns, geopolitical outreach, and disciplined asset rotation. 

While PIF’s top-line revenues surged 25 percent to SR413 billion, net profit fell sharply, down 60 percent to SR26 billion, as rising interest rates, impairments, and project delays eroded returns. 

The decline signals a new reality for one of the world’s most ambitious sovereign investors: returns must be restructured, debt must be optimized, and capital must be deployed with precision. 

To address these challenges, PIF has undertaken a series of strategic shifts. According to Global SWF, these include tighter performance management, a growing reliance on commercial paper and sukuk for short-term funding, and a renewed focus on mature, revenue-generating assets. 

Notably, net profits at AviLease, a PIF-owned aviation leasing firm, increased by 350 percent, while holdings in Uber overtook those in Lucid in PIF’s US public equity portfolio, reflecting a pivot to more resilient assets. 

Meanwhile, PIF’s role is increasingly geopolitical. The fund has been instrumental in securing major international partnerships, including anchoring investment platforms with BlackRock, Goldman Sachs, and Brookfield, as well as government-to-government deals with China, India, France, and the US. 

According to Global SWF, India’s proposal of a 10-year tax holiday and sweeping capital gains exemptions aims to unlock over $100 billion in PIF-led inward investment, underlining its strategic importance. 

PIF’s fiscal and institutional maturity is also earning global recognition. In July, the fund scored a perfect 100 percent in the 2025 Global SWF Governance, Sustainability, and Resilience Scoreboard. 

The ranking, which evaluates 200 sovereign investors globally, placed PIF among just nine funds worldwide and ranked it the highest in the Europe, the Middle East, and Africa region to meet all governance and transparency benchmarks. According to Global SWF, PIF’s strong showing reflects solid progress in disclosures, leadership accountability, and commitment to ESG. 

That commitment is especially evident in the fund’s ESG and green finance activities. In 2024, PIF launched a 100-year green bond as part of its sustainable finance framework, offering a rare long-term issuance that combines ESG impact with Shariah compliance. This approach is helping the fund attract diverse investor interest while aligning capital with climate goals. 

In parallel, the fund is building the Kingdom’s digital and artificial intelligence backbone. In May, it launched HUMAIN, a national AI company tasked with advancing Saudi Arabia’s position in sovereign AI capabilities. 

According to a PIF official statement, HUMAIN aims to invest in foundational models, develop Arabic-language datasets, and partner with global tech leaders, such as NVIDIA. The firm will serve as a vehicle for sovereign AI infrastructure and localization, supporting economic diversification and national security objectives. 

This evolving strategic posture comes at a critical moment for Saudi Arabia’s foreign direct investment ambitions. While cumulative investments remain below Vision 2030 targets, the latest figures from the General Authority for Statistics show that the volume of foreign direct investment inflows reached SR24 billion in the first quarter of this year, marking a 24 percent increase compared to the same period in 2024. 

The figure reflects resilience despite global uncertainties, with PIF expected to play a leading role in accelerating capital deployment and crowding in private investors. 

The fund is also rebalancing its internal structure. As Global SWF noted, several giga-projects, including NEOM’s “The Line,” have been downsized. While originally envisioned as a $1.5 trillion smart city housing 1.5 million people by 2030, current projections suggest that just 300,000 residents and 2.4 km of development will be completed within that timeframe. Accordingly, PIF has trimmed budgets for several large-scale ventures by 20 to 60 percent for 2025. 

Yet this recalibration is not a retreat. It signals a transition to what Global SWF describes as “precision finance,” which uses strategic levers such as commercial paper, asset recycling, co-investments, and sovereign partnerships to preserve liquidity and reduce fiscal strain. 

The fund’s ability to blend long-term Eurobonds with short-term sukuk and CP issuance demonstrates a growing sophistication in liability management, which is rare among sovereign wealth funds. 

As PIF deepens its international exposure, its dual role as both an investor and a policy instrument is becoming increasingly evident. According to Global SWF, the fund’s presence in Paris, its alignment with Trump-era Gulf deals, and its expanding memorandum of understanding with Asian markets reveal an increasingly geopolitical deployment of capital. 

Ultimately, the question facing PIF is not whether it can scale — it already has. The real test is whether it can steer Vision 2030 through a period of rising global interest rates, shifting capital flows, and mounting domestic expectations. If PIF can tighten execution, manage costs, and deliver returns across cycles, it may well redefine the playbook for state-driven transformation. 

As 2025 unfolds, the fund’s performance will be closely watched, not only for its financial metrics but for what it reveals about the sustainability of Vision 2030’s ambitions. 


Oil Updates — prices up as demand expectations, economic data lift sentiment

Oil Updates — prices up as demand expectations, economic data lift sentiment
Updated 58 min 29 sec ago
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Oil Updates — prices up as demand expectations, economic data lift sentiment

Oil Updates — prices up as demand expectations, economic data lift sentiment

SINGAPORE: Oil prices rose on Thursday, reversing declines in the previous three sessions, buoyed by stronger-than-expected economic data from the world’s top oil consumers and signs of easing trade tensions.

Brent crude futures rose 8 cents, or 0.1 percent, to $68.60 a barrel at 8:30 a.m. Saudi time. US West Texas Intermediate crude futures were up 16 cents, or 0.2 percent, at $66.54. Both benchmarks fell more than 0.2 percent in the previous session.

US President Donald Trump has said letters notifying smaller countries of their US tariff rates would go out soon, and said on Wednesday that he would probably put a blanket 10 percent or 15 percent tariff on smaller countries.

New agreements with Indonesia and Vietnam were announced this week.

Trump also offered renewed optimism about prospects of a deal with Beijing on illicit drugs and hinted that a trade deal with India was very close, while an agreement could possibly be reached with Europe as well.

“Trump softened tones on China and proposed lower tariff rates on smaller countries, which are seen as positive developments in the global trade outlooks,” said independent analyst Tina Teng.

“China’s better-than-expected economic data and the US’s larger-than-expected oil inventory draw have both been bullish factors for oil prices.”

US crude inventories fell by 3.9 million barrels to 422.2 million barrels last week, the Energy Information Administration said on Wednesday, a steeper decline than forecast for a 552,000-barrel draw, suggesting stronger refinery activity, tighter supply, and increased demand.

However, larger-than-expected builds in gasoline and diesel inventories capped price gains. This raised concerns of weakening demand from summer travel, ANZ analysts said in a note on Thursday.

The latest snapshot of the US economy by the central bank, released on Wednesday, showed activity picked up in recent weeks. However, the outlook was “neutral to slightly pessimistic” as businesses reported that higher import tariffs were putting upward pressure on prices.

Meanwhile, China data showed growth slowed in the second quarter, but not by as much as previously feared, in part because of front-loading to beat US tariffs, easing fears over the state of the world’s largest crude importer’s economy.

Data also showed that China’s June crude oil throughput was up 8.5 percent from a year ago, implying stronger fuel demand.

“Support has come from the positive news pertaining to some easing of trade tensions between China and the US with President Trump lifting the ban on the sale of AI chips to China along with the announcement of a trade deal with Indonesia,” said John Paisie, president of Stratas Advisers. 


Most Gulf markets in red on US inflation concerns, rate uncertainty

Most Gulf markets in red on US inflation concerns, rate uncertainty
Updated 16 July 2025
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Most Gulf markets in red on US inflation concerns, rate uncertainty

Most Gulf markets in red on US inflation concerns, rate uncertainty
  • Saudi Arabia’s benchmark index dropped 0.5%
  • Dubai’s benchmark index jumped 1%

DUBAI: Most Gulf markets ended lower on Wednesday as investors weighed US trade policy developments and signs that tariffs may be fueling inflation, while awaiting cues on the Federal Reserve’s interest rate policy. 

US consumer prices rose at the fastest pace in five months in June, raising concerns that tariffs were beginning to pressure inflation. 

On Tuesday, President Donald Trump said letters notifying smaller countries of their tariff rates would be sent soon. 

Saudi Arabia’s benchmark index dropped 0.5 percent, hit by a 0.4 percent fall in Al Rajhi Bank. Oil giant Saudi Aramco fell 0.7 percent. About 217.4 million shares changed hands, compared with an average of 314.3 million shares over the previous 10 sessions. 

Oil prices — a catalyst for the Gulf’s financial markets — fell by about 1 percent, as signs of stronger Chinese crude consumption were outweighed by investor caution about the wider economic impact from US tariffs. 

Dubai’s benchmark index jumped 1 percent to 5,974 dirhams, having crossed the mark for the first time in nearly 17.5 years. Financial stocks led gains with a 3.7 percent jump in Emirates NBD after concluding 3.9 billion dirhams in syndicated loans for Dubai Metro’s Blue Line Project. 

Abu Dhabi index added 0.3 percent, helped by a 2.6 percent increase in top lender First Abu Dhabi Bank. Strong bank earnings lifted sentiment across both Abu Dhabi and Dubai financials. 

Qatar’s stock index inched 0.1 percent lower. In the US, data on Tuesday showed consumer prices rose 0.3 percent in June, in line with forecasts, but the largest gain since January. 

Trump, however, reiterated his call for lower interest rates from the Fed, saying that consumer prices remain low. Monetary policy in the Gulf tends to mirror the Fed’s moves, given the region’s currency pegs to the US dollar. 

Outside the Gulf, Egypt’s blue-chip index, which is trading at a near all-time high, dropped 1 percent, weighed by a 5.3 percent slide in tobacco monopoly Eastern Company. 

Egypt’s progress on structural reforms under an $8 billion International Monetary Fund loan agreement has been mixed, the fund said, citing the public sector’s continued dominance of the economy as a problem.


IMF says Egypt makes mixed reform progress, cites state dominance of economy 

IMF says Egypt makes mixed reform progress, cites state dominance of economy 
Updated 16 July 2025
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IMF says Egypt makes mixed reform progress, cites state dominance of economy 

IMF says Egypt makes mixed reform progress, cites state dominance of economy 

CAIRO: Egypt’s progress on structural reforms under an $8 billion International Monetary Fund loan agreement has been mixed, the fund said, citing the public sector’s continued dominance of the economy as a problem.

In its long-delayed staff report for the fourth review of Egypt’s program, the IMF said there had been limited headway in reducing the role of state- and military-owned firms which enjoy preferential treatment in the form of tax exemptions, access to prime land and cheap labor.

These companies remain largely shielded from public scrutiny, with “very limited transparency about their financial condition,” the fund said.

Egypt’s reliance on a state-led growth model, centered on mega-projects and public investment, was curbing job creation and stifling the private sector in an increasingly volatile global environment, it said.

“The resulting financial and resource distortions have left Egypt with a large informal economy and few buffers against growing global financial, geopolitical and climate shocks,” the fund said.

The report was published late Tuesday, four months after the board approved the review and unlocked a $1.2 billion disbursement. Total disbursements are around $3.5 billion.

The 46-month facility was signed in March 2024 following more than a year of severe foreign currency shortages and inflation that peaked at 38 percent in September 2023.

The fund said last week it would merge the fifth and sixth program reviews into one later this year to give Egypt more time to implement critical reforms.

The fund forecast that Egypt’s external debt would rise from $162.7 billion in 2024/25 to $202 billion by 2029/30. Public debt overall “poses a high risk of sovereign stress,” it said, urging authorities to broaden the tax base, phase out untargeted subsidies and increase oversight of off-budget entities such as the state oil company EGPC and the urban development authority NUCA.

The report also cited “persistent and successive external shocks” that it said had “complicated policy execution,” including the war in Sudan which has pushed hundreds of thousands to flee to Egypt, as well as trade disruptions in the Red Sea which reduced foreign exchange inflows from the Suez Canal by $6 billion last year. 

Egypt finance minister reacts

Egypt's Finance Minister Ahmed Kouchouk said on Wednesday he is confident Egypt is hitting targets set by the IMF over the country's $8 billion loan programme and expects the next review to be completed by September or October.

"Both sides, are working on the expectation that this should be happening in September, October," Kouchouk said on the sidelines of an event at the London Stock Exchange.

"The IMF is after certain targets - and that's what's important."

A successful agreement on a review and subsequent sign off by the Fund's executive board triggers payment of a tranche.

Kouchouk also said he expected the government to complete three to four privatisation transactions before the end of the current financial year that started earlier this month.

The IMF has made increasing the role of the private sector in the economy a requirement of an expanded $8 billion loan, and Egypt's cabinet said earlier this year it would offer stakes in military-owned companies through its sovereign wealth fund to help comply with the Fund's requirements.

"It will be across a lot of sectors, but we have shared also a very strategic plan, a medium-term plan with the international institutions, including the IMF and others, with a very clear, visible timeline," added Kouchouk. 


Closing Bell: Saudi main index closes in red at 11,038

Closing Bell: Saudi main index closes in red at 11,038
Updated 16 July 2025
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Closing Bell: Saudi main index closes in red at 11,038

Closing Bell: Saudi main index closes in red at 11,038
  • MSCI Tadawul Index decreased by 0.41% to close at 1,415.42
  • Parallel market Nomu gained 0.16% to close at 27,345.08

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 56.67 points, or 0.51 percent, to close at 11,038.74.

The total trading turnover of the benchmark index was SR4.01 billion ($1.06 billion), as 51 of the listed stocks advanced, while 195 retreated.

The MSCI Tadawul Index decreased by 5.89 points, or 0.41 percent, to close at 1,415.42.

The Kingdom’s parallel market Nomu gained 43.62 points, or 0.16percent, to close at 27,345.08. This comes as 39 of the listed stocks advanced, while 43 retreated.

The best-performing stock was SHL Finance Co., with its share price rising by 4.77 percent to SR23.70.

Other top performers included Arabian Centers Co., whose share price rose by 4.19 percent to SR22.15, and Mutakamela Insurance Co., which saw a 3.71 percent increase to SR16.21.

The worst performer of the day was Emaar The Economic City, whose share price declined by 3.63 percent to SR13.02.

Arriyadh Development Co. and Alistithmar AREIC Diversified REIT Fund also saw declines, with their shares dropping by 3.33 percent and 3.31 percent to SR31.32 and SR8.75, respectively.

On the announcements front, Asas Makin Real Estate Development and Investment Co. has signed a contract with First Avenue for Real Estate Development Co. to execute the Jadah Al-Huda residential project in Riyadh. 

According to a statement on Tadawul, the 23,199 sq. meters project will feature modern townhouse units designed to meet high-quality standards and urban integration, aligning with the growing demand in Saudi Arabia’s real estate market.

Valued at 14.5 percent of the actual construction cost, the 15-month contract is part of Asas Makin’s expansion strategy to enhance its portfolio and diversify revenue streams. 

The company expects the project to positively impact its financial results while contributing to the development of the Kingdom’s real estate sector.

The firm’s shares traded 0.8 percent higher in Wednesday’s trading session on the main market to close at SR108.

First Avenue for Real Estate Development Co.’s shares traded 3.33 percent higher in the main market to close at SR8.99.

Al Yamamah Steel Industries Co. has announced the completion of construction and the start of trial operations at its new Al Yamamah Wind Power Systems Factory in Yanbu Industrial City. 

The company confirmed in a statement that commercial operations will officially begin on Aug. 1, subject to regulatory approvals. The factory’s financial impact is expected to be reflected in Al Yamamah’s consolidated financial statements starting from the third quarter of 2025.

The company’s shares traded 3.61 percent higher on the main market to close at SR34.42.


Saudi PIF-backed Diriyah project awards $1.53bn arena contract to China Harbor

Saudi PIF-backed Diriyah project awards $1.53bn arena contract to China Harbor
Updated 16 July 2025
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Saudi PIF-backed Diriyah project awards $1.53bn arena contract to China Harbor

Saudi PIF-backed Diriyah project awards $1.53bn arena contract to China Harbor
  • District will include Diriyah Arena, three mixed-use office buildings, and parking facility
  • It is expected to contribute around SR70 billion to GDP

JEDDAH: Saudi Arabia’s entertainment landscape is set for a major boost with the awarding of a SR5.75 billion ($1.53 billion) contract to construct a 20,000-seat arena as part of the Diriyah development. 

Diriyah Co., a subsidiary of the Public Investment Fund, has awarded the contract to a branch of China Harbor Engineering Co. for the Arena Block, a district that will include the Diriyah Arena, three mixed-use office buildings, and a parking facility, the company announced. 

Spanning approximately 74,000 sq. meters, the Diriyah Arena is designed to host concerts, sports, esports, exhibitions, and live performances to attract residents and international visitors. 

The Diriyah project, located on the northwestern outskirts of the capital, Riyadh, is one of five giga-projects backed by PIF under the Vision 2030 plan and aims to transform the Kingdom’s economic and tourism sectors. 

Upon completion, it is expected to contribute around SR70 billion to the gross domestic product, generate nearly 180,000 jobs, and accommodate approximately 100,000 residents. 

“The iconic Diriyah Arena will be a landmark entertainment complex in Diriyah that reinforces the City of Earth’s growing global role in shaping Saudi Arabia’s artistic and cultural future, in alignment with Vision 2030,” Jerry Inzerillo, group CEO of Diriyah Co., said.

The contract is the latest step in the company’s ongoing 2025 development drive, marking continued progress on the project. 

Yang Zhiyuan, CEO of the Chinese firm for the Middle East, said: “CHEC will bring to the project a wealth of global experience, technical expertise, and a proven track record in delivering the complex.” 

Designed by global firm HKS Inc., the structure blends traditional Najdi architecture with modern elements, reflecting Diriyah’s cultural heritage and global outlook. 

The broader Arena Block will also include three mixed-use office buildings designed by John McAslan + Partners, covering 114,000 sq. meters, along with over 4,000 parking spaces to support the stadium and surrounding offices.