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PIF Provides Private Sector with $25.6 Bn Investment Opportunities

PIF Governor Yasser al-Rumayyan during his opening speech at the Private Sector Forum (Asharq Al-Awsat)
PIF Governor Yasser al-Rumayyan during his opening speech at the Private Sector Forum (Asharq Al-Awsat)
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PIF Provides Private Sector with $25.6 Bn Investment Opportunities

PIF Governor Yasser al-Rumayyan during his opening speech at the Private Sector Forum (Asharq Al-Awsat)
PIF Governor Yasser al-Rumayyan during his opening speech at the Private Sector Forum (Asharq Al-Awsat)

The value of private sector investments in portfolio companies and projects affiliated with the Public Investment Fund (PIF) amounted to $25.6 billion as of Q3 2023, announced Governor Yasser al-Rumayyan.
Rumayyan was speaking at the second edition of the PIF Private Sector Forum, which began on Tuesday at the King Abdulaziz International Convention Center in Riyadh, aiming to strengthen partnerships and showcase opportunities for local cooperation in strategic sectors.
He stressed the importance of the Forum and the opportunities it provides to enhance cooperation with the private sector in achieving PIF strategic objectives.
He added that PIF continues to work as an engine for economic transformation in Saudi Arabia through the development of strategic sectors and the involvement of the private sector through initiatives that enhance its role as an investor, partner, and supplier.
He pointed to the role of the Public Investment Fund in supporting Vision 2030 goals, which aims to raise the private sector's contribution to GDP to 65%.
PIF has provided significant investment opportunities, and the value of private sector investments in portfolio companies and projects affiliated with PIF amounted to $25.6 billion as of the third quarter of 2023.
Meanwhile, the Head of the National Development Division at PIF, Jerry Todd, stated that achieving prosperity in the private sector is one of the essential goals of Vision 2030 and a key enabler for the Kingdom's economic transformation.
Todd stressed that PIF and its portfolio companies continue their commitment to support and enhance the private sector's growth.
In the first session, entitled "The Role of the Private Sector in Realizing Vision 2030," a panel of ministers discussed the importance of partnering with the private sector as an investor, operating partner, and supplier.
- Reaching 1Mn visitors
Saudi Minister of Tourism Ahmed al-Khateeb revealed that the sector in the Kingdom achieved the goal of 100 million tourists during 2023, with 77 million local visitors and 27 million foreign tourists, who spent $26.6 billion.
Khateeb announced that the new strategy of Crown Prince and Prime Minister Mohammed bin Salman for Vision 2030 targets attracting 150 million tourists, including 80 million from within the Kingdom and 70 million from abroad.
He explained that the state committed to funding training programs, as more than 100,000 young men and women were trained annually, including 15,000 who joined the best global institutes to enter the tourism sector.
He said the Tourism Development Fund has financed over 50 projects worth SR35 billion since its establishment.
- National Academy of Vehicles
In the same dialogue session, Minister of Industry and Mineral Resources Bandar al-Khorayef launched the first National Academy of Vehicles and Cars to develop capabilities in the electric vehicles industry.
Khorayef also announced the establishment of a new Automotive Manufacturers Association to boost the growth of the industrial sector.
Through the Association of Automotive Manufacturers and National Supply Chains, the Ministry also aims to raise awareness among local communities about the automotive industry sector and build human capabilities in manufacturing and maintaining cars with a high-tech ecosystem.
The Minister asserted that the Association and the Academy would help increase the contribution of significant projects in maximizing the benefit of local content and increasing imports.
From 2020 to 2022, the Kingdom's imports saw a 38 percent increase, while imports of products listed as mandatory during the same period were approximately 15 percent.
Moreover, the number of factories producing mandatory list products has reached 1,437 in three years.
Khorayef indicated that investments would accelerate growth by applying contemporary technologies and providing attractive job prospects, suggesting that the Kingdom will eventually become a technology exporter.
He referred to the Fund's role in launching the automobile industry in Saudi Arabia and bringing a larger number of international companies into the industry and its associated supply chains.
- Shipbuilding industry
For his part, Minister of Investment Khalid al-Falih stated that the private sector is the main focus of economic diversification, which is the main focus of Vision 2030 executive and strategic programs.
Falih added during his participation in the panel that the economy is expected to grow from $693 billion to $1.7 trillion, equivalent to four times the private sector's contribution.
The Kingdom plans to launch the "Investor Confidence Index," which measures investor confidence levels biannually to provide insights into challenges and requirements for the private sector to grow, said Falih.
He also highlighted the Kingdom's stable legislative, regulatory, and legal environment, which fosters favorable and sustainable private sector development.
The Minister added that the world's shipbuilding industry will be in China, South Korea, Saudi Arabia, and Russia in the coming decades.
He described the project as "pivotal," saying it is led by Crown Prince Mohammed bin Salman to build an integrated industry.
- Financing Contractors
The Public Investment Fund, in partnership with the National Infrastructure Fund, launched the "Contractor Financing Program," aimed at mitigating risks in construction sector investments. It also seeks to strengthen the construction sector, promote a more integrated and transparent construction ecosystem, and enhance project structures.
Meanwhile, Emir of Aseer Prince Turki bin Talal bin Abdulaziz unveiled at the Forum the operations of Asser Investment Company to transform the region into the number one tourist destination in the Kingdom.
Furthermore, the General Real Estate Authority signed a memorandum of understanding (MoU) with the Public Investment Fund, aiming to empower the real estate market in the Kingdom.
The MoU enhances the role of technology and data, talent development, and regulatory policies in a way that contributes to developing the sector in the country.
The MoU includes enhancing technology and innovation by enabling four main centers that seek to position the Kingdom as a center for real estate technology.
- Local content
The first day of the Forum witnessed the presentation of the Musahama Award for the private sector, where five national companies were selected for their positive contribution to local content in their work with PIF portfolio companies, including al-Ayuni Investment and Contracting Company, Alfanar Group, Cisco, Ericsson, and Riyadh Cables Group Company.
Last year, the Public Investment Fund launched the Private Sector Forum as a comprehensive site for private sector companies to deal with the Fund and its portfolio companies in priority sectors.
The platform provided over 200 opportunities last year, with a value exceeding $5.3 billion.
The Fund established the National Development Division to enhance the participation of the private sector in its projects and portfolio companies.
Since 2017, the Fund has established 93 companies and created more than 644,000 direct and indirect jobs in various promising strategic sectors.
The Forum is the largest event of its kind for the private sector in the Kingdom and is attended by more than 8,000 participants.
The first day's sessions witnessed the presence of several ministers, senior officials, government agencies, and 80 representatives of the Fund's portfolio companies, with more than 100 pavilions.

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Business

Gold Rallies as Dollar, Treasury Yields Soften after US Midterm Results

Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
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Gold Rallies as Dollar, Treasury Yields Soften after US Midterm Results

Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)
Gold chips displayed at a state-owned gold retail store in Surabaya, East Java (AFP)

Gold climbed to its highest level in over two weeks on Thursday as the fallout from the US midterm election results rippled through the global financial and oil markets.

Spot gold rose 1.6% to $4,124.89 per ounce by 0752 GMT. It touched $4,146.63 per ounce, its highest level since October 20, earlier in ‌the session.

Bullion ‌climbed about 3.4% on Wednesday, its biggest ‌daily gain ⁠since August 19.

US ⁠gold futures for December delivery climbed 1.5% to $4,135.40, Reuters said.

A weaker dollar and lower Treasury yields have helped gold recover above the key $4,000 level, though holding above that threshold remains crucial for the recovery outlook, said Linh Tran, market analyst at XS.com.

"If investment flows and yield movements continue to provide support, gold could stabilize ⁠above $4,000, also opening up an opportunity for a ‌recovery toward $4,200, followed by $4,400."

Oil prices ‌were slightly higher after earlier falling for a fourth day on ‌expectations that the losses US President Donald Trump's Republican Party ‌suffered in congressional elections this week may reduce the risk of further escalation of the US-Israeli war with Iran.

Lower energy prices ease inflationary pressures, reducing expectations that the central bank will keep interest rates higher ‌for longer, supporting the appeal of non-yielding bullion.

The dollar slid to its lowest in more ⁠than a ⁠month, and 10-year US Treasury yield fell to its lowest since September 10.

A weaker dollar makes greenback-priced bullion more affordable for holders of other currencies.

Market participants now await the US non-farm payrolls report on Friday to further gauge the Federal Reserve's monetary policy outlook.

Meanwhile, Citi has a 0-3 month price target of $4,500 per ounce for gold, the brokerage said on Wednesday, as it sees substantial upside potential if the Strait of Hormuz reopens and the Yemen/Saudi conflict de-escalates.

Among other metals, spot silver rose 0.8% to $52.63 per ounce, platinum gained 1.2% to $1,514.20 and palladium climbed 2.2% to $1,026.83.

Business

Tech Hit by New AI Worries on Positive Day for Most Markets

Hong Kong stocks rallied more than three percent on a broadly healthy day for Asian markets. Leung Man Hei / AFP
Hong Kong stocks rallied more than three percent on a broadly healthy day for Asian markets. Leung Man Hei / AFP
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Tech Hit by New AI Worries on Positive Day for Most Markets

Hong Kong stocks rallied more than three percent on a broadly healthy day for Asian markets. Leung Man Hei / AFP
Hong Kong stocks rallied more than three percent on a broadly healthy day for Asian markets. Leung Man Hei / AFP

Tech firms tumbled Thursday as investors contemplated the outlook for the AI boom after Democrats swept the US midterms, partly on the back of growing anger over the rapid building of data centers across the country.

However, broader markets mostly rallied and oil plunged after Donald Trump's Republicans were dealt a historic defeat that was blamed on high prices, tariffs and the Iran war.

The result stoked hopes he will look to wind down the Middle East conflict, which would help temper inflation and even soften his stance on trade.

But AI-linked firms came under the cosh amid fears for planned data center construction projects as well as renewed scrutiny from newly installed Democrats on Capitol Hill.

The sector had already been in the crosshairs of investors owing to questions about the vast sums pumped into new facilities, R&D and chip development, and when any companies would see a profit.

Charu Chanana at Saxo Markets said the vote was accelerating a reassessment of AI that was already under way.

"A Democratic Congress introduces another layer of uncertainty: regulatory scrutiny," she wrote, adding that the three main risks were more oversight, data center restrictions and capital spending uncertainty.

"The congressional scrutiny could accelerate demands for AI safety standards, independent model evaluations and greater accountability for data center developers," she added.

However, she also said: "This is not the same as an outright anti-AI policy agenda. AI is strategically important for US competitiveness, particularly against China, and there remains considerable bipartisan interest in maintaining American leadership."

Chip firms were hammered in Asia, with South Korea's SK hynix off more than seven percent and Samsung 5.5 percent down.

Tokyo-listed Kioxia dived more than 13 percent and Advantest tanked 14.7 percent, while Tokyo Electron lost more than nine percent and SoftBank 6.8 percent.

US Nasdaq futures fell more than one percent.

Broader markets performed better as investors rotated into other sectors including finance, auto, mining and manufacturing names.

Seoul, the poster child of the AI-led surge in the first half of the year, shed more than five percent, while Taipei lost more than three percent. Tokyo gave up 1.8 percent.

But there were healthy gains in Hong Kong, helped by hopes for an easing of trade tensions between the US and China, with tech titans including Alibaba, JD.com and Tencent leading the way amid a shift into beaten-down regional stocks.

Shanghai, Sydney, Singapore, Wellington, Mumbai, Jakarta and Manila also advanced.

Oil continued to fall after diving more than eight percent Wednesday on the US result amid optimism Trump will seek a deal to end the Iran war, which has been a key driver of the inflation spike that has hammered US consumers.

Hopes were given a boost when Vice President JD Vance said in a social media post that the Republican defeat was due to the unpopularity of the eight-month-old conflict.

The drop in crude prices -- both main contracts are now below $100 for the first time since the start of October -- has also tempered inflation worries and, in turn, Treasury yields, which dipped again Thursday.

The lower cost of borrowing has also been helped by the prospect that gridlock on Capitol Hill would lead to less spending.

That also weighed on the dollar, which held losses against its peers in Asian trade.

Business

Türkiye Showcases Renewables Surge, but Leaves Coal Intact

Türkiye is rapidly expanding its renewable energy capacity. But as host of COP31, the country faces growing pressure to match its clean energy ambitions with a clear commitment to phase out fossil fuels. Yasin AKGUL / AFP
Türkiye is rapidly expanding its renewable energy capacity. But as host of COP31, the country faces growing pressure to match its clean energy ambitions with a clear commitment to phase out fossil fuels. Yasin AKGUL / AFP
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Türkiye Showcases Renewables Surge, but Leaves Coal Intact

Türkiye is rapidly expanding its renewable energy capacity. But as host of COP31, the country faces growing pressure to match its clean energy ambitions with a clear commitment to phase out fossil fuels. Yasin AKGUL / AFP
Türkiye is rapidly expanding its renewable energy capacity. But as host of COP31, the country faces growing pressure to match its clean energy ambitions with a clear commitment to phase out fossil fuels. Yasin AKGUL / AFP

On a windy hillside about an hour's drive northwest of Istanbul, the Catalca power plant was one of Türkiye's first large-scale wind farms and has been feeding electricity into the grid for 18 years.

With an installed capacity of 93 megawatts, it generates 287 million kilowatt-hours of electricity a year, enough for around 115,000 households, said AFP.

"By replacing electricity that would otherwise come from fossil fuel-fired power plants, this output avoids 185,936 tons of carbon emissions each year," operator Sanko Enerji says.

Nearly two decades on, Catalca is one of nearly 300 wind farms, its giant turbines a symbol of the rapidly expanding capacity for renewable energy in Türkiye which is hosting the COP31 UN climate summit that opens in Antalya on Monday.

Last year, 43 percent of Türkiye's electricity came from clean energy sources, of which wind and solar accounted for 22 percent, according to energy think tank Ember.

With electrification emerging as one of the central themes of COP31, Türkiye has been pushing hard for it to be an implementation-focused summit that turns existing climate pledges into action.

Energy Minister Alparslan Bayraktar has outlined plans to triple Türkiye's installed solar and wind capacity from around 40 gigawatts to 120 gigawatts by 2035.

But with coal still the leading source of power generation, Türkiye is under pressure to pair its impressive renewables growth with a definitive shift away from fossil fuels.

Not only is it still building coal-fired power plants, it has yet to set a date to phase out fossil fuels.

- Coal still dominant -

"Türkiye's continued reliance on coal, alongside plans for further expansion, highlights the contradiction at the heart of its current trajectory," Duygu Kutluay of Beyond Fossil Fuels told AFP.

Embracing an electrification agenda alone did not amount to a genuine energy transition because "coal remains the country's largest source of electricity generation", she said.

Coal-fired power plants accounted for 33.5 percent of Türkiye's electricity production in 2025, energy ministry figures show, with Ember saying almost two-thirds of its coal was imported.

Plans to expand coal capacity "risk locking in further fossil-fuel dependence", she warned.

"As Türkiye increases renewable capacity, it must ensure clean electricity replaces fossil-fuel generation rather than simply meeting additional demand," Kutluay said.

The challenge is not only expanding renewables but establishing "a clear pathway to phase out coal".

Asked about Türkiye's continuing reliance on coal, Bayraktar told AFP in February that Ankara prioritized securing affordable energy supplies and reducing dependence on imports.

"Coal can initially be replaced with gas, but in the medium and long term it can be substituted with nuclear," he said.

Ibrahim Erden, president of the Turkish Wind Energy Association, said every country's transition was different with "no single path that suits everyone".

- Need for investment -

Emin Emrah Danis, chief executive of MOBEN consultancy, said Türkiye's energy policy was shaped by rising electricity demand and the need for "baseload" generation to deliver constant power around the clock.

"This is why Türkiye has invested heavily in gas- and coal-fired power plants over the past 30 years," he told AFP.

"For coal's share of power generation to fall to meaningful levels, Türkiye needs substantial investment in electricity storage and nuclear power," he said, referring to battery storage for renewable power.

Türkiye is currently putting the finishing touches on the first reactor of its Akkuyu nuclear power plant, which should be online by the start of 2027, Bayraktar told an energy summit last week.

But Türkiye's nuclear expansion, with two more plants in the pipeline, was unlikely to add enough baseload capacity to replace coal-fired electricity generation before around 2040, Danis said.

And coal would likely remain part of the energy mix for decades, with the need for baseload power and dependence on imports making a full phase-out infeasible before "the mid-2050s".

Türkiye relies heavily on imports of oil, natural gas and coal from countries like Russia, Iran and Azerbaijan.

Erden said infrastructure updates were essential to give greater place to renewables.

"We cannot simply shut down coal-fired power plants today and rely solely on wind and solar energy ... The technological and physical infrastructure is not yet capable of supporting that."

Beyond the climate argument, geopolitical tensions have also strengthened the case for domestic renewables.

"Renewables ... are not only one of the most effective tools for tackling climate change, but also an important means of strengthening energy security and reducing dependence on foreign supplies," he said.