Bahrain’s economy grows 1.3% in Q2, ministry report reveals

RIYADH: The Arab Energy Fund reported a 7 percent increase in net income for the first half of 2025, reaching $129 million compared to $121 million in the same period last year. 

The multilateral impact financial institution attributed the growth to strong operating income across all business lines, supported by disciplined risk management and cost efficiencies.

Total assets rose to $12 billion as of June 30, marking a 15 percent year-on-year increase, driven primarily by expansion in corporate banking and treasury portfolios.  

Shareholders’ equity grew 6.3 percent to $3.45 billion, while liabilities increased 18.7 percent to $8.59 billion, reflecting what the fund described as robust funding activity. 

The fund’s growth aligns with global energy trends, where resilient demand and continued investment needs in the sector are driving financing activity.  

The International Energy Agency reported in July that global oil demand is expected to rise by about 700,000 barrels per day, while energy consumption in the Middle East and North Africa region is projected to increase due to population growth and energy-intensive economies. 

At the same time, oil prices have held relatively stable despite supply increases from producers such as Iraq and easing OPEC+ cuts, providing favorable conditions for project financing.  

Alongside this, the shift toward diversification and greater focus on environmental and socially linked projects mirrors the fund’s impact mandate, positioning it to benefit from both conventional and transition-related investment opportunities. 

Khalid Al-Ruwaigh, CEO of TAEF, said: “Our strong half-year performance reflects the resilience of our business model and our unwavering commitment to growth and delivering meaningful impact in the MENA energy sector.”  

He added: “Guided by our strategy, these results are a direct outcome of our sustained efforts across all business lines and our prudent capital management.” 

Al-Ruwaigh said they remain focused on providing innovative financing and investment solutions that create value for their stakeholders, saying, “This reinforces our position as a leading and impact investment fund in the region’s energy landscape.” 

CFO Vicky Bhatia highlighted the fund’s operational efficiency, noting: “These results demonstrate our ability to capitalize on market opportunities while maintaining operational discipline.

“With a cost-to-income ratio of just 17.9 percent, a non-performing loan ratio reduced to 0.3 percent, and a strong capital adequacy ratio of 29.7 percent, we remain well-positioned to sustain growth and meet our strategic objectives.” 

Within business lines, the corporate banking portfolio grew 12 percent year on year to $5.93 billion, driven by demand across energy-related sectors and geographic diversification.  

Investments and partnerships reached $1.50 billion, up 4.4 percent year on year, supported by selective investments and portfolio management.  

Treasury assets rose 18.3 percent to $4.39 billion, benefiting from portfolio optimization and favorable interest rate conditions. 

Total funding climbed to $8.37 billion, a 17.1 percent year-on-year increase, underpinned by debt issuances and proactive liability management. 

The fund said this growth strengthened its flexibility to finance future initiatives and support energy projects across the MENA region. 

RIYADH: US aircraft manufacturer Boeing has inked an agreement with Saudi Arabia to explore partnerships and investments in the advanced air mobility sector.

A  memorandum of understanding was signed in Washington, D.C. by a delegation from the Kingdom’s civil aviation sector, led by Abdulaziz Al-Duailej, president of the General Authority of Civil Aviation, according to a press statement. 

Strengthening the aviation sector is one of the crucial goals outlined in Saudi Arabia’s Vision 2030 agenda, as the Kingdom is trying to position itself as a global hub of business and tourism by the end of this decade. 

Saudi Arabia’s National Tourism Strategy aims to attract 150 million annual visitors by 2030, while also increasing the sector’s contribution to the Kingdom’s gross domestic product to more than 10 percent. 

Commenting on the MoU with Boeing, Sulaiman Al-Muhaimidi, GACA’s executive vice president for Aviation Safety and Environmental Sustainability, said: “This partnership with Boeing reflects GACA’s commitment to creating safer, smarter skies through advanced air mobility innovation. The effort further cements Saudi Arabia at the forefront of the future of aviation.” 

During the visit, the Saudi delegation visited the Federal Aviation Administration and the headquarters of Boeing in Washington, as well as the Dreamliner facility in Charleston, South Carolina, where the company builds the 787 Dreamliner. 

The authority added that collaboration opportunities in civil aviation, aircraft manufacturing and maintenance services, sustainability, and advanced technologies initiatives were among the many topics discussed during the visit to the US. 

GACA added that the visit also aimed to enhance cooperation with the US in knowledge exchange, technology transfer, and localization of the aviation industry, in line with the Kingdom’s goal of becoming “a global industrial and logistics hub in aviation as part of its economic diversification.” 

Saudi Arabia’s National Aviation Strategy targets doubling passenger capacity to 330 million annually from over 250 global destinations and increasing cargo handling to 4.5 million tonnes by 2030. 

“By engaging with global aviation regulators and manufacturers, GACA is supporting Vision 2030 objectives to strengthen Saudi Arabia’s role as a hub connecting three continents, delivering greater connectivity and travel experiences for the Kingdom’s passengers,” said Al-Duailej. 

He added: “With new Saudi airlines being launched, record aircraft orders, and a focus on innovation and sustainability, the visit highlights the unprecedented opportunities being created by the Kingdom and underscores the strong Saudi–US aviation partnership.” 

Saudi Arabia’s Riyadh Air, the second flag carrier of the Kingdom, is expected to commence its operations by this year. 

Announced in 2023 by Crown Prince Mohammed bin Salman, Riyadh Air is expected to contribute over $20 billion to the non-oil gross domestic product and create more than 200,000 direct and indirect jobs. 

In June, the airline’s CEO, Tony Douglas, told Bloomberg that it plans to launch a new international destination every two months once operations begin, as it prepares to take delivery of its first Boeing 787 Dreamliner. 

The carrier currently has four Boeing 787 Dreamliners in different stages of assembly at Boeing’s facility in Charleston, South Carolina.

In addition, Riyadh Air announced at the Paris Air Show in June that it will purchase up to 50 Airbus A350 long-range aircraft, with deliveries expected to start in 2030.