Saudi Arabia’s PIF offers $10.67bn investment opportunities to strengthen local industries
Updated 12 February 2025
Nadin Hassan
RIYADH: Saudi Arabia’s Public Investment Fund is offering SR40 billion ($10.67 billion) in investment opportunities through its private sector platform to strengthen local industries, supply chains, and business growth, its governor said.
Speaking at the third PIF Private Sector Forum in Riyadh, Yasir Al-Rumayyan highlighted that the Kingdom’s sovereign wealth fund and its portfolio companies have invested around SR400 billion into local content from 2020 to 2023, supported by the MUSAHAMA Local Content Development Program.
With assets exceeding $700 billion, PIF plays a central role in Saudi Arabia’s economic diversification under Vision 2030. Al-Rumayyan emphasized that sustainable growth is driven by regulatory reforms and economic diversification efforts, with PIF serving as a key enabler.
The fund’s governor said that partnerships with private firms remain essential to PIF’s strategy, as Saudi Arabia continues regulatory reforms to foster long-term economic growth.
According to Al-Rumayyan, the fund’s efforts have significantly increased local content contribution, raising its share from 47 percent to 53 percent across PIF and its subsidiaries.
During his keynote speech, Jerry Todd, head of the National Development Division at PIF, addressed the 10,000 private sector attendees, emphasizing that the forum is designed to provide critical information and access to three major opportunity areas.
“For suppliers, there are 100 PIF portfolio companies next door in the main hall, ready to discuss their procurement priorities and show you how you can register and qualify as a vendor,” Todd said.
He added: “For supply chain developers, we will have dedicated sessions on automotive, transportation, and logistics, and for investors, 14 PIF portfolio companies will be sharing opportunities over the next two days.”
Todd also provided updates on two recently launched initiatives aimed at empowering Saudi talent.
“The first, which the governor mentioned, is our Accelerated Manufacturing Program. Thirteen small and medium enterprises were selected from 350 applicants for a six-month intensive program that began last September,” he said.
Todd added: “They will graduate tomorrow and have already secured 12 commercial agreements and two product development agreements with PIF portfolio companies. Seven private sector MoUs will be signed over the next two days, and they have tapped into seven new export markets.”
Highlighting the second initiative, Todd introduced the MUSAHAMA Design Competition, stating: “373 Saudi architectural students and 160 emerging local design firms have been competing to reimagine a community zone within one of our ROSHN developments, focusing on maximizing the use of locally sourced building materials.”
Todd said that the forum serves as a platform for businesses to explore opportunities in three key areas: supplying goods and services to PIF portfolio companies, developing local tech-enabled supply chains to support emerging sectors, and investing in Saudi Arabia’s rapidly expanding economy.
“I encourage you to meet with participants from both of these programs. Their progress, their potential, and their energy are inspiring and remind us all of our young people, who are our nation’s greatest asset,” Todd said.
He concluded by urging the private sector to collaborate in stimulating local demand, expanding domestic supply chains, and creating investment opportunities across the Kingdom.
Closing Bell: Saudi benchmark index edges down 0.31% to close at 11,398
Updated 21 sec ago
Nadin Hassan
RIYADH: Saudi Arabia’s Tadawul All Share Index fell on Wednesday, shedding 35.34 points, or 0.31 percent, to close at 11,398.74.
The total trading turnover of the benchmark index stood at SR4.813 billion ($1.28 billion), with 74 stocks advancing and 168 declining.
The Kingdom’s parallel market, Nomu, also closed lower, dropping 175.08 points, or 0.63 percent, to end at 27,777.71, as 24 stocks advanced and 50 retreated.
Meanwhile, the MSCI Tadawul Index dipped by 1.94 points, or 0.13 percent, to finish at 1,455.78.
The best-performing stock of the day was Nahdi Medical Co., with its share price jumping 7.26 percent to reach SR121.20.
The company announced its interim financial results for the first three months of the year, posting a net profit of SR255.2 million — a 61.6 percent increase compared to the previous quarter.
The surge was attributed to higher gross profit driven by increased sales, lower operating expenses due to favorable phasing, and a one-off zakat provision release.
On the other end, Leejam Sports Co. recorded the steepest drop, with its share price plunging 10 percent to close at SR124.20.
On the announcements front, Mobile Telecommunication Co. Saudi Arabia, also known as Zain KSA, posted a net profit of SR93 million for the first quarter of the year, marking a 38.8 percent increase year on year.
The company attributed the rise in net profit to a SR40 million increase in gross profit driven by revenue growth, as well as a 5.2 percent rise in earnings before interest, taxes, depreciation, and amortization, also by SR40 million.
Zain’s share price fell 8.29 percent during the session to close at SR11.88.
Saudia Dairy and Foodstuff Co. reported a quarter-on-quarter net profit increase of 36.9 percent, reaching SR126.1 million. The company credited the growth to an improved gross margin of 35.9 percent. Its share price slipped 0.67 percent to close at SR301.20.
Savola Group posted a net profit of SR189.16 million for the first three months of the year, reflecting a 45.7 percent decline compared to the same quarter last year.
The company said the drop was primarily due to the absence of share of profit from its divested stake in Almarai, which had contributed SR236.7 million in the previous year.
However, the decline was partially offset by reduced financial charges following debt settlements completed in 2024 totaling SR89.6 million.
Savola’s share price fell 7.11 percent during the session to close at SR30.00.
Arabian Pipes Co. emerged as one of the day’s bright spots, posting a 222.3 percent quarter-on-quarter jump in net profit, reaching SR40.1 million.
This performance was largely driven by a 63.46 percent increase in gross profit, which rose to SR63.66 million in the first quarter of 2025 from SR38.94 million in the previous quarter.
The company cited higher sales volumes, an improved product mix, and revised supply schedules as the key growth drivers. Its share price rose 0.55 percent to close at SR9.17.
Arabian Pipes Co. was bullish reporting a 222.3 percent quarter-on-quarter surge in net profit , reaching SR40.1 million.
The increase was primarily driven by higher gross profit, which rose to SR63.66 million in the first quarter of 2025 from SR38.94 million in the previous quarter, marking a 63.46 percent jump.
The growth was attributed to a rise in sales volume, an improved sales mix, and adjustments in supply schedules.
Arabian Pipes Co. share price traded 0.55 percent higher on the main market to reach SR9.17.
Tadawul’s market cap up 463% since 2014: S&P Global
Updated 07 May 2025
Nirmal Narayanan
RIYADH: The market capitalization of Saudi Arabia’s Tadawul All Share Index reached $2.7 trillion at the end of 2024, representing a 10-year rise of 463 percent, according to an analysis.
In its latest report, credit rating agency S&P Global said the stock market is expected to play a crucial role in materializing the Kingdom’s economic transformation goals outlined in Saudi Arabia’s Vision 2030 initiative.
The US-based agency added that Tadawul, compared to other major global equity markets, remains dominated by large government-related entity issuers and has relatively low, albeit gradually increasing, trading volumes and foreign participation.
The Kingdom’s stock market has been crucial in steering the nation’s economic transformation efforts, fueled by robust economic reforms and growing interest from regional and international investors.
In January, a report released by Kamco Invest said that Saudi Arabia led the Gulf Cooperation Council initial public offering market in 2024, earning a global ranking of seventh in total IPO proceeds.
In its analysis, S&P Global said Saudi Arabia has undertaken several reforms and market infrastructure investments over the past decade to grow its capital markets.
“These reforms are crucial to further advance its Vision 2030 goal of increasing its economic, social, and cultural diversification,” it said, adding: “The stock exchange Tadawul’s inclusion in major emerging market equity indices in 2019 was a key milestone and over the past decade, its market capitalization has increased 463 percent.”
IPO momentum
A bell is rung to signify the IPO of Saudi Aramco on Dec. 11, 2019. Getty
According to the report, one of the key milestones in Tadawul’s journey was the IPO of energy giant Saudi Aramco in 2019, which raised $29.4 billion, significantly elevating the exchange’s market capitalization and global standing.
Between 2014 and 2024, Tadawul’s main market hosted 91 IPOs for an aggregate offering of about $65 billion, excluding additional listings such as Aramco’s secondary offering of about $11.2 billion in July.
On May 6, a separate study by professional consulting firm EY also highlighted the growth of IPOs in Saudi Arabia’s main index and its parallel market, Nomu.
According to EY, the Kingdom witnessed 12 IPOs in the first quarter of this year, with five listings on Tadawul and seven on Nomu.
Overall, during the first three months of 2025, the main market generated $1.8 billion in total proceeds, while the parallel index raised $69 million.
Despite the IPOs of many private sector companies, public sector entities represent the bulk of new listings in Tadawul, S&P Global said in its latest report.
The analysis added that government-backed firms have generated about $44 billion of the estimated $65 billion of aggregate IPO value over the past decade.
“In addition to Aramco, Ades Holding and ACWA undertook IPOs of $1.2 billion each; Tadawul raised $1 billion in its own offering, in addition to other public-sector entities,” said S&P Global.
Regulatory reforms
S&P Global further said that the efforts of Saudi authorities to further develop Tadawul will help attract domestic and international capital, which will increase market liquidity for the long term.
The large funding requirements for Vision 2030 projects are also expected to stimulate the stock exchange in Saudi Arabia.
The report added that the holdings of foreign investors in Tadawul continue to rise but remain low — at about 4.2 percent of the market, or about 11 percent of the free float, as of year-end 2024.
According to the analysis, Saudi Arabia’s ongoing initiatives to improve market liquidity and increase foreign shareholdings on Tadawul, such as a new investment law and pension fund reforms, should help grow portfolio inflows.
In August, the Kingdom announced an updated investment law to enhance foreign direct investment flows. The Ministry of Investment stated that this would boost transparency and simplify the investment process.
The update promised enhanced protections for investors, including adherence to the rule of law, fair treatment, and property rights, alongside robust safeguards for intellectual property and seamless fund transfers.
“Although a key objective of the new regulation is to improve foreign direct investment flows, we expect it will also support inflows to capital markets, including to Saudi equities,” said the report.
Regarding the growing pension funds in Saudi Arabia, S&P Global said that reforms in this sector could advance the development of equity markets in the Kingdom.
“The authorities have implemented several important changes to the country’s pension system in recent years. Pension systems are important funding and liquidity providers as long-term investors in capital markets worldwide. Over the past few decades, we have seen many examples of pension funds playing a key role in the development of local capital markets,” said the analysis.
In 2021, Saudi Arabia merged its private sector pension fund with the General Organization for Social Insurance, the public sector pension system.
According to 2023 disclosures, GOSI had about $129 billion, or about 12 percent of the gross domestic product, invested in Saudi equities.
In 2024, the Kingdom announced additional reforms, which include raising the retirement age to 65 from 58.
“Saudi Arabia also increased the required contribution period to qualify for early retirement to 30 years from 25 years, which we believe will increase the average contribution period and hence investable period for GOSI. Given GOSI’s size and investments in the local equity market, this will support long-term local demand for Tadawul and its liquidity,” added S&P Global.
The report added that equity markets will allow the economy to diversify sources of funding for the Vision 2030 program, as the financing needs for giga- and mega projects are estimated to cost more than $1 trillion.
According to S&P Global, the government and the Public Investment Fund will raise new debt of about $60 billion, or 4.9 percent of GDP, annually from 2025 to 2028.
The study added that banks in Saudi Arabia will witness a robust credit growth of 10 percent during the same period, driven primarily by corporate lending related to Vision 2030.
“However, these will likely be insufficient to meet all the funding requirements. Growth in equity markets will enable companies and financial institutions to allocate more capital toward investments while managing leverage,” said the report.
JEDDAH: The Middle East’s aviation sector is pushing toward greater integration and collaborative innovation, with Saudi Arabia’s rapid expansion positioning it as the region’s benchmark, according to a senior International Air Transport Association official.
Kamil Al-Awadhi, IATA’s regional vice president for Africa and the Middle East, told Arab News that growth in the Gulf Cooperation Council is outpacing all other regions — and the Middle East could soon lead the global aviation industry.
His remarks came during IATA Aviation Day MENA 2025 — held for the first time in Saudi Arabia in Jeddah from May 6 to 7 — where industry leaders gathered to explore how regional collaboration and harmonized regulation can unlock aviation’s full potential.
Al-Awadhi credited the region’s resilience to unified political leadership and coordinated aviation strategies.
“After the COVID-19 pandemic subsided in 2022, airlines in the Middle East resumed smooth operations, as if airports had not been closed at all. In contrast, carriers in Europe and the US struggled for several months to return to normal operations,” he said.
Al-Awadhi added: “Saudi Arabia is not only expanding its aviation infrastructure, but it is also investing in its people. This is vital to meet the immediate skills requirements while developing a professional workforce able to deliver on Vision 2030.”
The official acknowledged the region’s operational strength but pointed to the lack of sufficient stakeholder dialogue. “The main goal of this event is to bring the region’s aviation sectors together to discuss their challenges and collectively work toward improvement,” the IATA official said.
Nick Careen, IATA’s senior vice president for operations, safety, and security, said the Middle East was poised to outpace global air traffic growth over the next two decades. “Looking ahead, global air travel is set to grow at 3.3 percent per year for the next 20 years. But the Middle East will grow faster at 4.8 percent,” he said during his keynote.
The event took place just days after IATA released its latest global passenger traffic data, showing industry-wide revenue passenger kilometers rose 3.3 percent year-on-year in March, reaching 738.8 billion — continuing the trend of subdued single-digit growth seen since 2023.
Nick Careen, IATA’s senior vice president for operations, safety, and security. Supplied
Careen emphasized Saudi Arabia’s pivotal role in the region’s aviation transformation. “The sector is not just moving forward — it’s moving forward at speed. And that should make everyone in this room take notice.”
He noted that aviation and aviation-related tourism contributed $90.6 billion to the Kingdom’s gross domestic product — representing 8.5 percent — and supported 1.4 million jobs. “More than 62,000 people are directly employed by airlines, and another 79,000 are working in the broader aviation ecosystem. In 2023, Saudi Arabia handled over 713,000 tonnes of air cargo,” he said.
According to Careen, this progress is being driven by Crown Prince Mohammed bin Salman’s Vision 2030 plan, which places aviation at the heart of economic diversification and international connectivity. “We have seen it in the development of new airports, the digital push, the workforce development, and the launch of national carriers like Riyadh Air,” he said.
Abdulaziz bin Al-Duailej, president of the General Authority of Civil Aviation, described the Middle East as an economy worth $9.48 trillion powered by a young population, adding: “Aviation here is not only enabling growth; it is leading transformation through strategic investment and collaboration.”
He continued: “By 2024, passenger traffic across the Middle East exceeded pre-pandemic levels by 9 percent — more than double the global growth rate. While Saudi Arabia’s civil aviation sector recorded a remarkable increase of over 24 percent compared to pre-pandemic levels.”
Industry leaders gathered in Jeddah. Supplied
The Kingdom’s growth has been marked by major achievements. In 2024 alone, Saudi Arabia handled 128 million passengers, more than 900,000 flights, and 1.2 million tonnes of cargo. The government has ordered 500 new aircraft and attracted 21 new international airlines into its market.
“The Kingdom’s aviation market is opening rapidly. In the past year alone, 21 new international airlines have entered the Saudi market, and in the first quarter of 2025, foreign carriers carried 63 percent of international passengers,” Al-Duailej said, reaffirming the Kingdom’s willingness to engage globally to shape the sector’s future.
In its latest press release, IATA outlined three strategic priorities to help Saudi Arabia sustain its aviation gains: improving coordination with stakeholders, ensuring cost-effective infrastructure development, and building national talent.
“Given Saudi Arabia’s important role in shaping regional aviation policies, continued collaboration and consultation with users and stakeholders, along with alignment to global standards and best practices, are vital,” the organization said.
It also emphasized the need for cost-competitiveness. “As Saudi Arabia makes significant investments in airport infrastructure and digitalization, it is critical to work with the industry to ensure cost competitiveness,” IATA added.
On workforce development, the group noted: “Ensuring a skilled workforce across all areas of aviation will enable the Kingdom to fulfill its potential as a regional and global aviation hub.”
On the sidelines of the forum, IATA announced new training agreements with Saudi airlines, airports, and academic institutions. In the first phase, more than 1,000 graduates and aviation professionals will be trained in areas such as airport operations, safety, airline management, and ground handling.
Riyadh Airports Co. and Qassim University joined IATA’s network of regional training partners, alongside long-time collaborator Prince Sultan Aviation Academy. Together, the three will deliver over 60 programs covering technical, commercial, and interpersonal skills.
“The renewed agreement enables the academy to offer IATA training courses within the Kingdom and across the GCC region. All operational aviation requirements — including cabin crew, maintenance, ground services, and business training — are provided by PSAA,” said Khalid Bawazeer, the academy’s director of continuous studies, to Arab News.
“This requires preparation to meet the demand for increased training programs, whether conducted internally by the academy or through external courses such as those offered by IATA,” he added.
As part of the deal, sector awareness courses will also be offered to graduates of Riyadh Air and Saudia to nurture national talent for future leadership. Specialized Dangerous Goods training will be provided to operational staff from the Saudi Civil Aviation Academy.
SAL Logistics Services Co. marks its new agreement at the event. Supplied
In addition, SAL Logistics Services Co. has been accredited as a competency-based training and assessment center, and Saudi Ground Services has renewed its CBTA accreditation.
The IATA’s Careen acknowledged that despite the Kingdom’s progress, aviation development remains uneven across the Middle East due to persistent geopolitical instability.
He pointed to challenges in Yemen, Syria, Iraq, and Lebanon, where conflict and sanctions have suppressed growth. “Where aviation continues to demonstrate remarkable resilience in the face of political instability, it does far better in countries that are stable, peaceful and open,” the official said.
Careen called on governments and regulators to align efforts toward a more integrated and forward-looking aviation environment. “A Middle East characterized by open skies, harmonized regulations, and shared innovation,” he said, is critical to long-term success.
“To every government, airline, and civil aviation authority in this room, your success is everyone’s success. A rising tide lifts all boats, and in this case, all planes,” he said.
Ibrahim Al-Omar, director general of Saudia Group, the host of the event, said the forum was a valuable opportunity to showcase how Vision 2030 is reshaping regional aviation.
“With safety, innovation, and sustainability driving our progress, IATA Aviation Day MENA is a valuable platform to showcase how the Kingdom’s Saudi Vision 2030 is shaping the future of aviation not only across the Kingdom but the region and beyond,” he said in a statement released a day prior to the event.
Saudi POS spending hits $4bn, fueled by increased spending across all sectors
Updated 07 May 2025
Miguel Hadchity
RIYADH: Saudi Arabia’s point-of-sale transactions climbed 36.2 percent to SR15.4 billion ($4.1 billion) in the week ending May 3, driven by increased spending across all sectors.
The latest data from the Kingdom’s central bank, also known as SAMA, showed that education led the growth, registering the largest jump in transaction value, up 74.7 percent to SR239.7 million. The sector also saw a 32.4 percent rise in the number of transactions, reaching 192,000.
The clothing and footwear sector followed, recording a 51.2 percent increase in transaction value to SR917.6 million. Telecommunication spending ranked next, rising 45.1 percent to SR136.4 million, with transactions up 37.3 percent to 3.4 million.
Food and beverages — the sector with the biggest share of total POS value — recorded a 44.9 percent increase to SR2.4 billion.
Transportation spending rose 27.9 percent to SR852 million, while restaurants and cafes saw a 28.8 percent increase, totaling SR2.1 billion and claiming the second-biggest share of this week’s POS.
The smallest spending gains were on jewelry, rising by 12.6 percent to SR361 million, and construction and building materials, which increased by 13.1 percent to SR354.7 million.
The health and public utilities sectors also saw upward changes, increasing by 30.2 percent and 28.8 percent to reach SR953.3 million and SR56.5 million, respectively.
Spending on electronics followed the trend, rising 24 percent to SR189.3 million, and recreation and culture edging up by 38.6 percent to SR291.6 million.
Miscellaneous goods and services claimed the third-largest share of total transactions value, with an uptick of 41.3 percent to SR1.9 billion.
The top three categories — food and beverages, miscellaneous goods and services, and clothing and footwear — accounted for 41.5 percent of the week’s total spending, amounting to SR6.4 billion.
Geographically, Riyadh dominated POS transactions, with expenses in the capital reaching SR5.2 billion, a 28.5 percent increase from the previous week.
Jeddah followed with a 27.2 percent rise to SR2.1 billion, while Dammam ranked third, up 28.1 percent to SR772 million. Hail saw the biggest increase, inching up 60.8 percent to SR268.9 million, followed by Tabuk with a 60.6 percent uptick to SR325.2 million.
Hail recorded 4.5 million deals in transaction volume, up 33 percent, while Tabuk reached 5.4 million transactions, rising 29 percent.
Lucid sticks to annual production forecast even as tariff woes hit automakers
Updated 07 May 2025
Reuters Arab News
LONDON: Lucid stuck to its 2025 production forecast on Tuesday despite the threat of tariffs forcing many automakers to pull back targets, while the luxury electric-vehicle maker reported first-quarter revenue below analysts’ expectations.
Demand for pure battery cars in the US has been slowing as consumers, hit with high interest rates and recession worries, gravitate toward cheaper hybrids.
Lucid — majority-owned by Saudi Arabia’s Public Investment Fund— lowered the prices of its vehicles and offered incentives, including cheaper financing, to entice customers to its Air sedans that start at about $70,000 in the US.
The company said it would produce nearly 20,000 vehicles this year, while Wall Street expects it to manufacture 18,370, according to an average of five analysts by Visible Alpha.
Revenue for the quarter ended March 31 was $235 million, compared with analysts’ average estimate of $248.9 million, data compiled by LSEG showed.
Lucid, which has been focusing on cutting costs, posted an adjusted net loss per share of 20 cents, narrower than the 27-cent loss a year ago.
The company is gearing up to expand its product line with a mid-size car expected to roll out next year, targeting a $50,000 price point, aiming to broaden its customer base and strengthen its position in the competitive EV sector.
Success of Lucid’s recently launched Gravity SUV, along with the midsize, is seen as crucial to its long-term outlook, as the company burns through cash ramping up production.
US automakers are grappling with tariffs imposed by President Donald Trump on vehicle and auto parts imports. The tariffs are expected to disrupt supply chains and raise prices of automobiles.
Automakers, including Tesla, have said they were reassessing their full-year targets in the face of tariff uncertainty.
Last week, Trump signed two orders to soften the blow of his auto tariffs, with a mix of credits and relief from other levies on materials.
In September 2023 it launched its first international manufacturing plant in Saudi Arabia.
Located in King Abdullah Economic City, the facility can currently assemble 5,000 Lucid vehicles annually during its first phase.
Once fully operational, it is expected to produce up to 155,000 electric cars per year.
