International banks in UAE to switch to Mon-Fri work week
Updated 19 December 2021
Reuters
DUBAI: Deutsche Bank AG, JPMorgan Chase & Co and Societe Generale SA are changing to a Saturday-Sunday weekend from the New Year in the UAE, which is aligning its working week with most global markets.
The German bank will from Jan. 3 operate Monday-Friday instead of the current Sunday-Thursday as is common around the Middle East, a source familiar with the matter told Reuters.
Wall Street-based JPMorgan is also adapting the same week in UAE along with flexible practices such as a break for Muslim prayers on Fridays, the bank said in a statement.
France-based Societe Generale's spokesperson said it is implementing Saturday-Sunday weekend from Jan. 2 in its Dubai and Abu Dhabi entities, according to an emailed statement.
Representatives of Bank of America did not immediately respond to a Reuters request for comment.
The banks' move comes after the UAE said on Dec. 7 that it would shift to a four-and-a-half day week with a Saturday-Sunday weekend from the start of next year.
Private companies are, however, free to choose their own working week.
Growing Saudi film industry driving job creation, economic growth
Over 630 cinema screens opened across 60 locations in 2024, with ambitions to exceed 1,000 by 2030
Updated 28 June 2025
Reem Walid
RIYADH: Since lifting the cinema ban in 2018, Saudi Arabia has rapidly transformed its film industry into a key engine of job creation and economic diversification.
By 2024, the Kingdom had opened over 630 cinema screens across 60 locations, with ambitions to exceed 1,000 by 2030.
This expansion is expected to create over 7,000 direct and indirect jobs, contributing to a broader entertainment ecosystem projected to generate around 450,000 employment opportunities and push the sector’s gross domestic product contribution to 4.2 percent by the end of the decade.
Building an industry
To date, more than SR3.5 billion ($933 million) has been invested in cinema infrastructure, content services, and technology by local and international players.
According to Shahid Khan, partner and global head of media, entertainment, sports, and culture at Arthur D. Little Middle East, these investments have extended beyond major cities into developing regions, promoting more inclusive economic growth.
“A notable example is Muvi Cinemas, the first Saudi-owned cinema brand and current market leader, which has rapidly expanded to establish itself as the market leader. It has employed hundreds of Saudis and actively invested in workforce localization through training programs aimed at building local capabilities in cinema operations and management,” Khan said.
He added that box office revenues have held steady at SR900 million annually for the past three years, with food and beverage sales contributing over SR500 million each year — strengthening the sector’s role in Saudi Arabia’s non-oil revenue diversification. Khan also pointed to the positive spillover into local film production, supported by regulatory incentives from the Film Commission, which is laying the groundwork for sustainable, locally driven industry growth.
Films produced in these locations help showcase the Kingdom’s unique natural and historical assets, sparking interest among global audiences and encouraging tourism.
Abeer Al-Husseini, partner at Fragomen
According to Abeer Al-Husseini, partner at Fragomen, the establishment of entities like the Film Commission and the General Entertainment Authority, alongside the development of advanced studios, has opened up new opportunities in creative, technical, and support roles. She noted that this momentum is also fueling demand for film and media education.
“Event management, hospitality and cultural tourism have similarly benefited, particularly around major film festivals and heritage venues. Incentives like the Cash Rebate Incentive Program, which offers up to 40 percent in non-refundable grants, draw in international productions and further drive job creation,” Al-Husseini said.
She added that Saudization is making steady progress, with full nationalization in cinema sales and supervisory roles and 50 percent in technical jobs, placing Saudi talent at the center of the sector’s growth.
Al-Husseini also emphasized the broader impact of cultural initiatives such as the Red Sea International Film Festival, which supports global filmmakers while boosting local tourism and ancillary sectors including entertainment, food, media, and digital content.
Vision 2030 and a cinematic future
Saudi Arabia is positioning itself as an international production hub by capitalizing on a combination of geographic diversity, government incentives, and growing infrastructure.
From Arthur D. Little’s standpoint, initiatives such as Film AlUla have played a crucial role since 2020, attracting over 120 productions to the region, including international titles like Kandahar and Norah.
“Meanwhile, NEOM has become a cornerstone of Saudi Arabia’s emerging media industry. Over the past two years, the region has reportedly produced more than 35 projects spanning various formats, genres, and production scales,” said Khan, adding: T”his includes high-profile projects like the Apple TV+ series Foundation and the international blockbuster Desert Warrior, which employed hundreds of Saudis in areas such as set design, catering, security, and logistics.”
He noted that these projects are helping build a skilled local workforce, with government cash rebates and infrastructure investment creating the foundations for a world-class production ecosystem. The country’s target of producing 100 feature films by 2030 is also expected to unlock opportunities across tourism and hospitality.
FASTFACTS
• This expansion is expected to create over 7,000 direct and indirect jobs, contributing to a broader entertainment ecosystem projected to generate around 450,000 employment opportunities and push the sector’s gross domestic product contribution to 4.2 percent by the end of the decade.
• While meeting Saudization requirements will remain a key challenge as demand for skilled workers rises, the influx of international talent presents valuable opportunities for collaboration, training, and upskilling the local workforce.
“A compelling example of this potential can be seen in Australia, where Mission Impossible: 2 significantly boosted tourism — contributing to approximately 200 percent increase in visitors to the film location within a few years. Similarly, Saudi Arabia’s cinematic exposure is poised to elevate the Kingdom’s profile on the global stage, attracting tourists, stimulating local economies, and advancing the goals of Vision 2030,” he said.
Al-Husseini underscored the role of AlUla and NEOM in promoting the Kingdom’s unique cultural and futuristic offerings, both critical to advancing Vision 2030. “Films produced in these locations help showcase the Kingdom’s unique natural and historical assets, sparking interest among global audiences and encouraging tourism. This boost in tourism supports local businesses in hospitality, retail and transport,” she said.
Looking ahead, Arthur D. Little’s Khan said that by 2025, the Saudi film sector is expected to create thousands of new jobs across related industries, supported by generous incentives such as a 40 percent production rebate and dedicated funding programs. University-level film and media programs are also helping nurture the next generation of local talent.
“Tourism will see strong gains as well. AlUla and NEOM’s media zone is expected to draw hundreds of thousands of creative professionals and visitors annually once fully operational,” he said.
Khan highlighted key opportunities in developing Arabic-language content, forming public-private partnerships to support talent pipelines and infrastructure, and exporting Saudi films to neighboring Gulf Cooperation Council, African, and Asian markets. However, he noted the need to address challenges such as building a skilled workforce, navigating cultural sensitivities, and adapting to shifts toward digital streaming platforms.
Al-Husseini emphasized that Saudi Arabia’s film industry is on course to boost employment and growth, with infrastructure investments — like AlHisn Studios — strengthening its capacity for large-scale productions.
“Partnerships with global production companies are on the rise, as seen in the MBS Group’s recent agreement to manage and operate AlUla Studios. At the same time, training programs and workshops are being rolled out to develop local talent while attracting international professionals, supporting long-term industry sustainability,” she said.
She concluded that while meeting Saudization requirements will remain a key challenge as demand for skilled workers rises, the influx of international talent presents valuable opportunities for collaboration, training, and upskilling the local workforce.
Battery cost drops and govt drive help Kingdom achieve EV goals
Global battery market is advancing rapidly as demand rises sharply and prices continue to decline
Updated 28 June 2025
Nirmal Narayanan
RIYADH: A rapid decline in battery prices and critical mineral costs, along with effective government initiatives, are expected to help Saudi Arabia achieve its goal of electrifying 30 percent of vehicles in Riyadh by 2030, according to experts.
Speaking to Arab News, Joseph Salem, partner and travel, transportation and hospitality practice lead at Arthur D. Little, Middle East, said that the Kingdom needs to deploy at least 1.5 million electric vehicles by 2030 to meet this stipulated target.
Known for its oil wealth, Saudi Arabia has been leading the region’s energy transition and is now focused on developing a comprehensive EV ecosystem.
As a part of this strategy, the nation has invested in US-based EV manufacturer Lucid through the Kingdom’s sovereign wealth fund, as well as creating its homegrown electric vehicle brand Ceer, which is expected to roll out vehicles by 2026.
“Battery cost reduction serves as a key enabler for Saudi Arabia to achieve its EV adoption targets and build a competitive regional automotive industry, reinforced by the broader global trend of declining battery prices. It will also be driven by both the government’s push and pull from the market,” said Salem.
He added: “Saudi Arabia’s $9 billion investment across the EV value chain, with Ceer launching vehicles by 2026 and a partnership with Lucid Motors to produce 155,000 EVs per year, underscores its commitment to becoming a regional EV manufacturing hub, reducing production costs and enhancing affordable EV availability.”
The Kingdom is also expanding its EV infrastructure, aiming to have 5,000 fast chargers nationwide by 2030, making adoption more practical for consumers.
The crucial cost factor
In March, a report released by the International Energy Agency said that the global battery market is advancing rapidly as demand rises sharply and prices continue to decline.
The IEA further stated that electric car sales increased by 25 percent year on year in 2024 to reach 17 million, while the average price of a battery pack for an electric car dropped below $100 per kilowatt-hour, a key threshold for competing on cost with conventional models.
“The ongoing reduction in EV battery costs is already making certain electric vehicle segments cost-competitive with internal combustion engines,” said Christopher Decker, partner, energy and natural resources at Oliver Wyman – India, Middle East and Africa.
He added: “This growing affordability will help lay the foundation for EV infrastructure in Saudi Arabia, which is essential for scaling up and ultimately decarbonizing the broader light-vehicle fleet.”
Battery cost reduction serves as a key enabler for Saudi Arabia to achieve its EV adoption targets.
Joseph Salem, partner and travel, transportation and hospitality practice lead at Arthur D. Little, Middle East
Paul Sullivan, an energy and environment expert at Johns Hopkins University in Maryland, US, said that the Kingdom could advance its technical capabilities to make EVs more popular and affordable. “Saudi Arabia lives in its own auto market but also the world auto market. It must adjust to both. But it has the benefit of large cash flows and stocks to invest in new technologies and industries,” said Sullivan.
Citing a Goldman Sachs study, Arthur D. Little’s Salem said that battery costs fell by over 85 percent in lithium pricing from 2022 to 2024, reducing global EV costs and helping automakers close the price gap with ICE vehicles.
Hel added that battery pack prices are expected to drop nearly 50 percent by 2026, making EVs’ total cost of ownership comparable to ICE vehicles in select major markets, including Saudi Arabia.
“With battery prices projected to reach $80 per kWh by 2026, EVs are becoming more affordable, making them increasingly attractive to Saudi consumers, where price is a key factor for a sizeable section of the customer base,” added Salem.
Advancing innovation
Experts who spoke to Arab News also praised recent innovations in Saudi Arabia, including a new lithium extraction technique developed by King Abdullah University of Science and Technology.
In January, researchers at KAUST presented their innovative technology in a study published in the Journal of Science, which describes a method for direct lithium extraction from brine in oilfields and seawater.
Lithium, a critical mineral for batteries, is present in these sources at very low concentrations, making it difficult to extract in useful quantities.
However, this new technology makes this otherwise inaccessible element extractable on an industrial scale. The technology was demonstrated on a pilot test 100,000 times larger than that of a university laboratory, and its cost was competitive relative to standard lithium mining extraction techniques.
“KAUST’s new lithium-extraction technique could reduce costs for Saudi as well as other battery makers. This last bit will happen when this lithium extracting technology spreads outside of Saudi Arabia or other similar methods are used across the world,” said Johns Hopkins University’s Sullivan.
He added: “The lithium and battery industries are looking for ways to cut costs. This will drive more invention and research. Things can move quickly. A company and a country cannot rest on its victories in a quickly changing and uncertain world. This invention must be exploited quickly before it becomes obsolete by other inventions.”
Decker said that KAUST’s development of the new lithium extraction technique is a promising step toward integrating Saudi Arabia’s mining sector into the global lithium value chain.
Salem praised KAUST’s innovative efforts, noting that the breakthrough could extract up to 10,000 times more lithium from oilfield brine and seawater. This would reduce reliance on global markets and help secure a stable, cost-effective supply for domestic battery production and EV manufacturing.
The Arthur D. Little official further added that this new technology could open up potential lithium export opportunities and position the Kingdom as a global hub for critical battery materials, driving economic diversification.
“This innovation aligns with Saudi Arabia’s industrial strategy to localize the entire battery value chain — from critical minerals to EVs — and to build a new high-tech export sector,” said Salem.
Geographical shifts
According to the IEA, China produces over three-quarters of all batteries sold globally.
The energy think tank added that batteries in China were reported to be priced lower than in Europe and North America by over 30 percent and 20 percent, respectively.
Declining battery prices in recent years are a major reason why many EVs in China are now cheaper than their conventional counterparts.
However, Sullivan said that this Chinese dominance in the battery industry will not last forever, as other regions are also embracing methods to effectively manufacture batteries in a cost-effective manner.
“China may dominate for some time, but it will likely not have such a large share of the overall battery market forever. The US and the EU are putting significant efforts into developing their battery industries. For example, India may be a battery giant in the future. Japan and South Korea also want to build greater battery industries and markets,” said Sullivan.
He added: “Every industry must deal with and respond to threats of substitution, supplier power, buyer power, and threats of new entry. Saudi Arabia could play these five forces for success in the future. Economics and business do not stand still for long.”
Salem said that the Kingdom’s lithium extraction technology, if combined with the right ecosystem, could offer a chance to reduce reliance on China for selected components and materials, strengthening local supply chains.
“China’s policy shift is a wake-up call — it exposes global vulnerabilities but also creates a window for Saudi Arabia to assert strategic autonomy and emerge as a regional battery and EV manufacturing hub,” said Salem.
In early 2025, China’s Ministry of Commerce proposed new export restrictions targeting critical battery technologies, including lithium extraction and cathode material production. These measures would require government approval for technology exports and thus have intensified global concern over dependence risks.
Commenting on China’s dominance in the battery market, Decker noted that heavy geographic concentration in any critical supply chain raises concerns about resilience and long-term sustainability.
“Localization and diversification are becoming strategic priorities for many countries looking to build more independent and secure clean energy ecosystems. China will continue to play a central role in the battery industry, given its dominance in both processing capacity and control over key raw materials,” said Decker.
He added: “Collaboration, innovation, and transparent supply chain practices will be crucial to ensure global progress in the energy transition.”
Startups expand into new verticals as regional innovation gains momentum
Updated 28 June 2025
Nour El-Shaeri
RIYADH: Startups across the Middle East and North Africa are attracting fresh capital, forging strategic partnerships, and expanding into new verticals as regional innovation gains momentum.
Saudi Arabia-based automotive services platform Morni has received new investment from STV via its recently launched $100 million NICE fund.
The funding amount remains undisclosed but is expected to support Morni’s expansion beyond roadside assistance into a broader automotive services ecosystem.
The company now operates in auctions, insurance third-party administration, garages, and parts recycling.
Founded in 2015 by Salman Al-Suhaibaney, Morni positions itself as a technology-driven mobility platform at the center of Saudi Arabia’s automotive digital transformation.
Valu lists on Egyptian Exchange
Valu, a buy now, pay later fintech platform founded in 2017 and operating under EFG Hermes Holding, has officially listed its shares on the Egyptian Exchange.
The listing was achieved via a non-public, in-kind dividend distribution of 20.49 percent of Valu’s share capital by EFG Holding to its shareholders.
Amazon has acquired a 3.95 percent stake in Valu at 6.041 Egyptian pounds per share, while EFG Finance Holding retains a 67 percent ownership post-listing.
Valu now operates in both Egypt and Saudi Arabia and claims to have captured a 25 percent share of Egypt’s consumer finance market.
In 2024, Valu reported a 66.5 percent growth in issuances, significantly outpacing the broader market’s 31.2 percent growth rate.
AppliedAI raises $55m in series A round
UK-founded and UAE-based AppliedAI has raised $55 million in an oversubscribed series A round led by G42, Bessemer Venture Partners, and strategic partner e&.
Middle East Venture Partners also participated in the round, which will support the company’s global expansion and deepen its reach across the MENA region.
Founded in 2021 by Moataz Khamis, Mahmoud Khaled, and Ahmed Emara, Nowlun provides an online freight forwarding platform that lets users compare and book shipping services. (Supplied)
AppliedAI, founded in 2021 by Arya Bolurfrushan and relocated to the UAE in 2022, uses artificial intelligence to automate the processing of medical billing records and insurance claims — an area typically reliant on slower, manual outsourcing methods.
The new capital injection follows a $42 million raise in 2022 from G42 and the Al Maktoum family.
The company now plans to strengthen its product offerings and increase partnerships within the UAE’s emerging AI ecosystem.
Nowlun raises $600k to embed AI in logistics
Egyptian logistics startup Nowlun has secured a $600,000 seed round extension led by Ingressive Capital, raising its total funding to $2.3 million.
The Cairo-based company provides an online freight forwarding platform that lets users compare and book shipping services tailored to their needs.
Founded in 2021 by Moataz Khamis, Mahmoud Khaled, and Ahmed Emara, Nowlun plans to use the funds to scale its AI-powered Smart Logistics Assistant, expand operations across Egypt and Saudi Arabia, and improve decision-making in the region’s fragmented shipping industry.
“This is more than just funding; it’s a strategic push to embed AI at the core of logistics,” said CEO Moataz Khamis.
“We’re building your smart Logistics Assistant — a tool that puts decades of industry expertise in the palm of your hand, helping you make faster, smarter shipping decisions every day.”
Roomz.rent raises pre-seed funding
Egyptian startup Roomz.rent has closed a pre-seed funding round led by Qora71, Hub71’s angel syndicate, with participation from other regional angel investors.
Founded in 2024 by Ahmed Mandour and Yasser Al-Sarrag, Roomz.rent provides AI-powered room and flatmate matching services for furnished rentals on flexible leases.
The new capital will be used to scale operations in Egypt, enhance the platform’s technical capabilities, and expand into new urban centers across the MENA region.
The company aims to establish a leading regional co-living brand focused on convenience and compatibility.
Related secures $8m in new funding
UAE-based loyalty and rewards company Related has raised $8 million in new funding from Saudi investment firm Equivator.
Founded in 2014 by Rabih Farhat, Related offers loyalty programs and a digital rewards infrastructure across sectors including telecom, banking, retail, utilities, and entertainment.
The investment will be used to roll out AI- and blockchain-based solutions, improve gamification tools, and support expansion into the Saudi market and other territories.
Additionally, Related will launch the “Related Loyalty & Fintech Authority,” a regional forum aimed at advancing policy and knowledge in the loyalty sector.
“We are thrilled to welcome Equivator as a strategic partner on our journey to redefine loyalty and engagement in the region,” said Farhat, CEO of Related, adding: “This partnership is more than a transaction; it’s a transformation, a joint mission to reshape the future of fintech-powered loyalty solutions in line with the Kingdom’s innovation agenda.”
Netaj launches Iraq-focused venture studio Nawat
Iraq-based innovation platform Netaj has launched Nawat, a venture capital studio providing a structured six-month program for 40 early-stage startups.
Nawat includes three tracks — ideation, minimum viable product, and early-stage — accompanied by bootcamps, mentorship, and access to capital.
The studio offers hybrid investments combining in-kind support of $10,000–$25,000 and direct capital of $25,000–$250,000 via convertible notes or equity.
Nawat expects to back five to 10 high-potential companies with the aim of building scalable, investor-ready businesses capable of regional growth.
Aria Ventures commits $1m to early-stage deep tech
Cairo-based venture studio Aria Ventures has launched a $1 million investment initiative to support early-stage deep tech startups in Egypt over 2025–2026, with plans to increase this to $4 million over four years.
The studio focuses on startups in AI, robotics, biotechnology, and other science-intensive sectors.
Aria Ventures’ approach involves end-to-end company building — offering support from ideation to product development, infrastructure, legal, and commercialization.
This is complemented by strategic capital deployment aimed at turning pioneering research into scalable, investor-ready businesses.
The studio recently introduced the DeepTecher competition to identify high-potential innovations that can be developed into viable companies.
Winners will receive investment and access to Aria’s venture-building resources.
Talenteo raises undisclosed investment to expand in Francophone Africa
Algerian human resources tech startup Talenteo has secured an undisclosed six-figure investment from Tunisia-based 216 Capital.
Founded in 2022 by Tarik Metnani and Louai Djaffer, Talenteo provides HR and payroll management software tailored to African SMEs and mid-sized companies.
The new funding will be used to support Talenteo’s entry into Tunisia, accelerate product development, and facilitate expansion across Francophone Africa.
The company aims to offer comprehensive HR solutions for a region often underserved by enterprise-grade platforms.
Global markets: Shares rise on China-US trade hopes, dollar on the back foot
Updated 27 June 2025
Reuters
PARIS: Global shares rallied on Friday, helped by signs of progress in US-China trade talks, while the dollar held close to its lowest levels in more than three years.
World stock markets have rallied to record highs this week, as traders took confidence from a ceasefire between Iran and Israel and markets stepped up bets for US rate cuts.
A trade agreement between the US and China on Thursday on how to expedite rare earth shipments to the US was also seen by markets as a positive sign, amid efforts to end the tariff war between the world’s two biggest economies.
Asian shares hit their highest in more than three years in early trading, and US stock futures pointed to a firm start for Wall Street shares.
The pan-European STOXX 600 index was up 0.8 percent on the day, set for a 1.1 percent weekly gain — its best week since mid-May.
London’s FTSE 100 was up 0.5 percent and Germany’s DAX gained 0.6 percent.
The MSCI World Equity Index touched a fresh record high and was set for a weekly gain of 2.8 percent.
The S&P 500 index is up just 4.4 percent this year overall, following a volatile first half of the year, dominated by US President Donald Trump’s “Liberation Day” tariff announcement on April 2, which sent stocks plunging.
“What we are having right now is potentially some optimism about some trade deals,” said Vasileios Gkionakis, senior economist and strategist at Aviva Investors.
“We have ... come from quite low levels in the aftermath of the Liberation Day in April. To a certain extent we have also had some mini-selloff on the back of the events in the Middle East, and in that sense we’re rebounding.”
Trump has set July 9 as the deadline for the EU and other countries to reach a deal to reduce tariffs.
Mark Haefele, chief investment officer at UBS Global Wealth Management said that in the near-term, the firm saw greater upside potential in US and emerging markets than in Europe.
Dollar drop
The dollar remained on the backfoot, hovering near its lowest level in 3-1/2 years against the euro and sterling.
The dollar index was down a touch on the day at 97.269 , holding near its lowest in more than three years. The euro was at $1.1708, getting a lift after data showed French consumer prices rose more than expected in June.
It held near multi-year peaks hit a day earlier.
“We see the US dollar as unattractive,” said Haefele at UBS Wealth Management.
Markets are focused on US monetary policy, as traders weigh up the possibility of Trump announcing a new, more dovish chair of the Federal Reserve.
Traders have stepped up their bets on US rate cuts, and are now pricing in 64 basis points (bps) of easing this year versus 46 bps expected on Friday.
The dollar is having its worst start to a year since the era of free-floating currencies began in the early 1970s.
“I don’t think it’s just the repricing of the Fed, I think there is a broader issue here of some tarnishing of US exceptionalism,” Aviva Investors’ Gkionakis said.
Core PCE price data, the US central bank’s preferred measure of inflation, is due later in the session.
German 30-year government bond yields were on track for their biggest weekly increase in nearly four months after rising this week on expectations of increased borrowing by Germany’s government.
PIF embraces ‘precision finance’ with diversified debt strategy, says Global SWF
Updated 27 June 2025
Dayan Abou Tine
RIYADH: Saudi Arabia’s Public Investment Fund is embracing a calibrated, multi-instrument approach to debt issuance described by Global SWF as a model of “precision finance.”
According to the research firm, the purpose — following the issuance of the commercial paper program in June — is to align PIF’s funding tools with investment timelines, liquidity needs, and investor targeting, while reinforcing financial discipline across its expanding portfolio.
In its report, Global SWF noted that PIF is moving away from a singular focus on long-term mega-bond issuances and toward a more agile debt framework that includes commercial paper, sukuk, green bonds, and multi-tranche conventional bonds.
This strategy is designed not just to raise capital, but to do so with precision, which is matching maturities to project lifecycles and diversifying funding sources across global markets.
Global SWF highlighted that PIF’s latest move, completes a full-spectrum debt portfolio that now includes ultra-short to ultra-long maturity instruments.
The commercial paper, issued in US dollar and euro denominations via offshore special-purpose vehicles, secured the highest short-term credit ratings available: Prime-1 from Moody’s and F1+ from Fitch.
These ratings reflect exceptional credit quality and grant PIF access to deep liquidity pools among institutional investors such as money market funds.
The commercial paper program is a critical addition to a borrowing strategy that also includes a $3 billion 100-year green bond issued in October 2022, a $5.5 billion green bond in February 2023, a $3.5 billion sukuk in October 2023, and a series of multi-tranche bonds and sukuk issued through early 2025.
With each offering, PIF has tailored tenor, currency, and structure to match specific financial and investor objectives.
The evolution of PIF’s financial strategy is closely tied to its broader transformation under Vision 2030. Since 2016, the fund has grown its assets under management from $160 billion to $941.3 billion, according to the latest Vision 2030 Annual Report. It has now increased its 2030 AUM target to $2.67 trillion, reflecting its expanded mandate and rising international profile.
PIF’s investment strategy is balanced between domestic development and global positioning. About 40 percent of its assets are allocated to Saudi-based companies and projects, while the remaining 60 percent target international sectors such as technology, logistics, mining, and tourism.
According to the Vision 2030 report, PIF’s initiatives have helped create 1.1 million jobs, attracted over $37 billion in private capital, and grown the number of PIF-established companies from 45 in 2021 to 93 in 2024.
A strategic departure from Gulf norms
While other sovereign wealth funds such as Norway’s NBIM remain entirely debt-free, and Singapore’s Temasek or China Investment Corporation borrow sparingly, PIF has opted for a hybrid model, one that combines government equity injections with strategic use of debt instruments.
According to Global SWF, this is not a matter of opportunistic borrowing. Rather, PIF is practicing deliberate asset-liability matching which focuses on issuing long-dated bonds to support giga-projects like NEOM or The Line, while using short-term debt for working capital needs and market-timed investments.
Sukuk offerings help tap into regional Islamic finance liquidity, and green bonds target environmental, social, and governance-focused global capital.
This differentiated approach allows PIF to broaden its investor base while keeping funding costs aligned with the nature and duration of its projects.
Why ratings matter
The fund’s credibility is bolstered by strong long-term credit ratings: Aa3 from Moody’s and A+ from Fitch. This has allowed it to secure favorable terms on successive bond offerings and confirmed that PIF is regarded as an exceptionally low-risk short-term borrower, giving it seamless access to institutional liquidity globally.
Global SWF emphasized that the ratings, combined with diverse issuance formats, position PIF among a small group of sovereign wealth funds with the internal capability to manage complex, multi-layered debt programs.
Saudi Arabia is currently navigating a tighter fiscal environment, with a projected 2.3 percent budget deficit in 2025 and a more disciplined approach to public spending.
In this context, PIF’s access to capital markets is more than just financial, according to Global SWF, it serves as a strategic bridge that enables ongoing project execution without placing undue pressure on state reserves.
The firm noted that the fund’s recent bond and sukuk calendar illustrates a sequenced and diversified funding plan, rather than reliance on a single issuance type. This is especially important as global interest rates remain volatile and investors increasingly scrutinize sovereign debt sustainability.
Rather than treating debt as a one-off tool, the fund is deploying it systematically, by tenor, purpose, and investor group, to support a $2.6 trillion vision for economic diversification and global investment leadership.
As the Kingdom approaches the final stretch of Vision 2030 implementation, PIF’s capital strategy offers a case study in how sovereign wealth funds can combine financial discipline, market sophistication, and national ambition under a unified financing framework.
