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Saudi Arabia Launches Platform to Enable Contractors to Implement PIF Projects

Works on the Amaala project on the Red Sea coast, northwest of Saudi Arabia (Photo: Asharq Al-Awsat)
Works on the Amaala project on the Red Sea coast, northwest of Saudi Arabia (Photo: Asharq Al-Awsat)
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Saudi Arabia Launches Platform to Enable Contractors to Implement PIF Projects

Works on the Amaala project on the Red Sea coast, northwest of Saudi Arabia (Photo: Asharq Al-Awsat)
Works on the Amaala project on the Red Sea coast, northwest of Saudi Arabia (Photo: Asharq Al-Awsat)

Saudi Arabia has launched a platform that qualifies contractors and provides services and facilities to enable them to obtain pre-qualification according to technical evaluation criteria.

 

The new platform will contribute to providing a highly reliable indicator for companies affiliated with the Public Investment Fund to implement construction projects in cooperation with the private sector.

 

The Saudi Sovereign Fund has been able to establish 77 local companies so far, as part of its endeavor to advance economic transformation, create job opportunities and diversify investments at the local and international levels.

 

On Thursday, the Saudi Contractors Authority (SCA), in cooperation with the PIF, announced the launch of the “re-qualification of contractors” program, in a step to enhance competitiveness and transparency in the sector, and to enable the implementation of current and future projects for companies affiliated with the Sovereign Fund in accordance with the highest quality standards.

 

The service provides a platform that brings together a number of establishments affiliated to the PIF in a unified pre-qualification program, and enables them to participate in the projects through several criteria, including: activities and experience, quality management, and health and safety.

 

The Saudi Contractors Authority has recently concluded the fifth edition of the Future Projects Forum, in Riyadh.

 

More than 3,000 contractors and interested parties from 16 countries around the world participated in the event, along with 43 government and private agencies.

 

The forum reviewed the details and developments of more than 3,000 future projects, the value of which was estimated at SAR 1 trillion ($266 billion).

 

It also saw the launching of a platform that helps contractors and interested parties to track and search for contracting projects in Saudi Arabia and the Middle East.

 

Meanwhile, iot squared, a leading company in the Internet of Things (IoT) technologies and a subsidiary of the STC group, has signed a cooperation agreement with “AHOY” Technology, specializing in smart mobility infrastructure and logistics services.

 

This collaboration supports the complete transformation towards IoT, contributing to an advanced technological revolution that aims to achieve the targets of Saudi Vision 2030.

 

Under this agreement, iot squared, in partnership with “AHOY”, will provide the latest smart logistics solutions, including advanced technology infrastructure and various programs that contribute to developing application interfaces and software platforms. The collaboration also involves identifying the target audience and providing technical support.

 

Othman Aldahsh, CEO of "iot squared", emphasized that global alliances were a key priority to benefit from potentials and create new opportunities through dedicated investments, acquisitions and partnerships.

 

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Business

HSBC Shares Tumble 6% after Third-quarter Revenue Disappoints, Wealth Growth Slows

People alight from a tram outside the HSBC bank headquarters in Hong Kong on October 27, 2026, ahead of the bank's third quarter results announcement. (Photo by Peter PARKS / AFP)
People alight from a tram outside the HSBC bank headquarters in Hong Kong on October 27, 2026, ahead of the bank's third quarter results announcement. (Photo by Peter PARKS / AFP)
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HSBC Shares Tumble 6% after Third-quarter Revenue Disappoints, Wealth Growth Slows

People alight from a tram outside the HSBC bank headquarters in Hong Kong on October 27, 2026, ahead of the bank's third quarter results announcement. (Photo by Peter PARKS / AFP)
People alight from a tram outside the HSBC bank headquarters in Hong Kong on October 27, 2026, ahead of the bank's third quarter results announcement. (Photo by Peter PARKS / AFP)

HSBC's shares slid 6% on Tuesday after revenue undershot estimates and growth at its wealth business slowed, highlighting the challenge big banks face to sustain recent record profits.

Europe's largest bank reported a 32% surge in pretax profit to $9.6 billion for the July-September quarter, in line with estimates. But investors and analysts focused on the lack of upgrades to the bank's performance guidance and underwhelming third-quarter revenue of $18.6 billion against forecasts for $19 billion.

The drop in the bank's shares underscores how recent strong results from European lenders have increased investor expectations for performance, even as the impact of the Iran war on inflation and interest rates has created a tough environment for banks. The shares remain up 9% for the year to ⁠date.

HSBC also launched ⁠a share buyback of up to $1 billion, the same amount as the previous quarter and a move that had boosted shares in previous reporting periods but is now largely expected by investors.

"There is sometimes a market expectation that we upgrade guidance or targets," CFO Pam Kaur told reporters on a conference call when asked about the share drop.

According to Reuters, analysts noted that the bank's net interest income slightly missed expectations, while fee income from its key wealth growth pillar was steady but ⁠unspectacular.

Escalating deposit competition in Hong Kong and the UK, HSBC's two core markets, are expected to push up interest expenses, they said. Time deposits in the bank's Hong Kong portfolio rose two percentage points quarter-on-quarter to 38%, but Jefferies analysts noted that the shift to chase higher deposits by offering higher interest rates is expected to erode margins.

Revenue for HSBC's wealth division was flat at $2.7 billion. That compared with 15% and 23% year-on-year revenue growth in the first two quarters.

The performance of HSBC's wealth business is under particular scrutiny because the British bank, like its peers, is focusing growth on fee-generating businesses such as wealth management as lending comes under pressure from falling interest rates.

Analysts warned that Asia-focused banks are bracing for a slowdown in wealth momentum ⁠following robust gains driven ⁠by Chinese capital inflows.

Kaur said on the call that China's tightening of wealth flows has prompted clients to shift from other banks in Hong Kong to HSBC.

"We picked up more business."

HSBC benefited from the absence of legal provisions booked in the same quarter a year earlier. It also said expected credit losses tumbled 17% to $800 million, thanks to a reduction in charges linked to Hong Kong's real estate sector as well as its UK and Mexican wealth businesses.

British banks' strong recent results have prompted calls from trade unions and activist groups for tax hikes on the sector in finance minister John Healey's first budget, due on Wednesday.

Bank bosses have lobbied hard to avoid such an increase in sector levies, arguing it would curb lending and make Britain less competitive.

HSBC announced an interim dividend of $0.1 per share, the same as the previous quarter.

Business

Saudi Banks’ Nine-Month Profits Near $20 Billion

Several Saudi banks in a public space (Company handout).
Several Saudi banks in a public space (Company handout).
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Saudi Banks’ Nine-Month Profits Near $20 Billion

Several Saudi banks in a public space (Company handout).
Several Saudi banks in a public space (Company handout).

Saudi Arabia’s banking sector continued to post record profits in the first nine months of 2026, driven by lending growth, strong credit demand and expanding economic activity.

Combined net profit at the 10 banks listed on the Saudi main stock market rose 6.84% to SAR 73.58 billion ($19.62 billion), from SAR 68.87 billion ($18.37 billion) a year earlier, an increase of SAR 4.71 billion ($1.26 billion).

The banks are Saudi National Bank, Al Rajhi Bank, Riyad Bank, Saudi Awwal Bank, Banque Saudi Fransi, Arab National Bank, Alinma Bank, Bank AlBilad, Saudi Investment Bank and Bank AlJazira.

Al Rajhi Leads Profit Rankings

Al Rajhi Bank reported the highest net profit for the nine-month period at SAR 20.87 billion, up 13.3% from approximately SAR 18.41 billion a year earlier.

Saudi National Bank ranked second with SAR 19.48 billion, an increase of 4.57% from SAR 18.62 billion, followed by Riyad Bank with nearly SAR 8.13 billion, up 4.6% from SAR 7.77 billion.

In the third quarter alone, combined profits at the 10 banks rose 4.8% to SAR 24.75 billion ($6.6 billion), compared with SAR 23.62 billion ($6.3 billion) in the same period of 2025, an increase of SAR 1.13 billion ($301 million).

Al Rajhi Bank again led the sector with quarterly net profit of SAR 7.1 billion, up 11.73%.

Saudi National Bank followed with SAR 6.45 billion, despite a marginal decline of 0.29%, while Riyad Bank ranked third with SAR 2.865 billion, up 6.6%.

Lending Growth and Revenue Diversification

Financial and economic expert Sulaiman Al-Humaid Al-Khaldi, a member of the Saudi Economic Association, told Asharq Al-Awsat that the nine-month results reflected the strength of Saudi banks and their ability to turn economic expansion into sustainable returns while financing investment and productive projects.

He attributed the growth to increased lending, efficient management of funding costs, diversified revenue streams and tighter control of expenses and risks.

Economic expansion and development projects were also creating opportunities for corporate lending and banking services, including payments and cash management, he added.

Al-Khaldi said profit growth across all 10 listed banks indicated a broad improvement rather than gains concentrated in a few institutions.

However, sustaining that performance would depend on the quality of earnings, growth in core operating revenue, adequate liquidity and capital levels, and effective management of nonperforming loans and provisions.

He said the slowdown in quarterly profit growth to 4.8%, compared with 6.84% for the nine-month period, reflected uneven performance among lenders amid competition for deposits, funding costs and differences in asset utilization efficiency.

Maintaining growth would require greater operational efficiency, sustainable revenue generation and lending expansion without compromising asset quality or risk management, he added.

He also stressed that banking growth should translate into wider economic benefits through financing productive projects, supporting business expansion and creating jobs.

Profits Could Approach SAR 100 Billion

Al-Khaldi forecast that Saudi banks’ combined profits could approach SAR 100 billion by the end of 2026, compared with approximately SAR 90 billion in 2025, representing growth of more than 10%, provided momentum continues through the final quarter.

Mohamed Hamdy Omar, CEO of G World for Studies, also told Asharq Al-Awsat that the nine-month results underscored the banking sector’s strength and its ability to benefit from Saudi Arabia’s expanding economy.

He said higher lending volumes and stronger demand for credit from individuals and businesses had driven growth in net financing and investment income and expanded banks’ loan portfolios.

Banks had benefited particularly from financing major projects linked to Saudi Vision 2030, including infrastructure, real estate development, energy and utilities, he added.

Continued demand for mortgage and consumer financing had supported operating revenue, notably at Al Rajhi Bank, whose large retail market share and extensive deposit base provided a competitive advantage in managing funding costs.

Omar said lending growth had also boosted non-financing income from banking fees, brokerage and wealth management, while larger asset and financing portfolios helped improve operational efficiency.

Interest Rates and Asset Quality

Looking ahead to the fourth quarter, Omar expected Saudi bank profits to continue rising, potentially reaching record levels for 2026 as credit demand remained strong and financing deals linked to government and capital projects accelerated before the end of the financial year.

He said a shift toward lower interest rates could ease banks’ funding and deposit costs while encouraging private-sector borrowing and investment.

However, the ability to manage profit margins and financing costs would remain crucial to future performance.

Omar also highlighted asset quality and credit-loss provision coverage as factors supporting banks’ resilience against potential defaults and helping sustain profitability.

Continued earnings growth, he underlined, reflected the sector’s expanding role in financing economic activity and development projects and supporting Saudi Arabia’s economic diversification goals.

 

 

Business

US Official Warns EU Airbus Loan Puts Trade Deal at Risk

Airbus logo at the Paris Air Show (Le Bourget), near Paris on June 17, 2025. Bertrand Guay, AFP
Airbus logo at the Paris Air Show (Le Bourget), near Paris on June 17, 2025. Bertrand Guay, AFP
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US Official Warns EU Airbus Loan Puts Trade Deal at Risk

Airbus logo at the Paris Air Show (Le Bourget), near Paris on June 17, 2025. Bertrand Guay, AFP
Airbus logo at the Paris Air Show (Le Bourget), near Paris on June 17, 2025. Bertrand Guay, AFP

A tariff truce between the European Union and United States is potentially at risk due to a multibillion-dollar loan approved by the bloc's investment bank for Airbus this summer, President Donald Trump's top trade official said Monday.

US Trade Representative Jamieson Greer expressed concern that his office had received "no details about this loan" and pressed for the situation to be "resolved as soon as possible."

"I had sincerely hoped that trade-distorting European subsidies to Airbus were a thing of the past," Greer said in a statement.

"This situation injects substantial uncertainty into transatlantic trade in the aerospace sector," he continued.

In June, the European Investment Bank (EIB) said it would provide Airbus with a record three billion euros ($3.4 billion) in financing to boost its research and development.

"This new financing -- unprecedented in the EIB's history -- aims to provide Airbus with not only the capacity but also the flexibility needed to invest in long-term research, development and innovation across both commercial aviation and the security and defense sectors," EIB vice president Ambroise Fayolle told AFP at the time.

The United States and European Union had been squabbling over alleged unfair trade practices since 2004, with both sides claiming the other provided support to private companies, such as aircraft manufacturers Boeing and Airbus, in violation of international trade agreements.

The 17-year-long feud saw the United States and EU impose tariffs on billions of dollars worth of each other's products.

But in 2021, a five-year deal was agreed between both sides under former president Joe Biden's administration.

Both sides have not reimposed the tariffs since.