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Saudi PIF Expands Investment Portfolio in Transport, Logistic Services

Riyadh Air is wholly owned by the Public Investment Fund. (Asharq Al-Awsat)
Riyadh Air is wholly owned by the Public Investment Fund. (Asharq Al-Awsat)
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Saudi PIF Expands Investment Portfolio in Transport, Logistic Services

Riyadh Air is wholly owned by the Public Investment Fund. (Asharq Al-Awsat)
Riyadh Air is wholly owned by the Public Investment Fund. (Asharq Al-Awsat)

The Saudi Public Investment Fund (PIF) is actively diversifying its investments across promising sectors and is strategically leveraging the Kingdom’s central location at the crossroads of three continents to establish itself as a global logistics hub.

The PIF is notably expanding its investment in transportation and logistics services, with recent efforts including exploratory discussions to acquire cargo planes from Boeing and Airbus, aiming to launch a new air freight company, according to Bloomberg.

Currently, the PIF’s investments in transportation and logistics are distributed among seven companies, all working diligently to support the Kingdom’s vision and achieve the national strategy for transport and logistics services. This strategy encompasses a range of major projects designed to meet both economic and social objectives.

PIF launched Riyadh Air last year as a new airline. Operating to global standards, the company aims to lead the industry by connecting travelers to over one hundred international destinations worldwide by 2030, offering exceptional service combined with authentic Saudi hospitality.

Riyadh Air recently secured numerous agreements and strategic partnerships with major industry players and finalized deals for acquiring a fleet of aircraft. These preparations are setting the stage for a strong launch of operations, scheduled to begin in 2025.

Rental services

In 2022, PIF launched AviLease, a company specializing in full-service commercial aircraft leasing. AviLease is committed to providing tailored solutions for partners through top-tier leasing, trading, and asset management services.

Since its inception, the company has seen significant growth with its advanced fleet of Airbus and Boeing aircraft and follows a disciplined investment strategy that balances strong financial performance with a sustainable positive impact on the national level.

Helicopters

The establishment of the Helicopter Company was aimed at addressing the increasing demand in the Kingdom for luxury tourism and air transportation services. This initiative aligns with PIF’s strategy to maximize sustainable returns and develop new sectors.

The company supports the efforts to achieve Vision 2030 and boost the tourism sector. It is also the first local operator of commercial helicopters in Saudi Arabia.

Land transport

The PIF also invests in the Saudi Public Transport Company SAPTCO, which was established in 1979. It is a land carrier that owns a fleet of over 8,000 vehicles of various types and specifications, equipped with the latest technology and vehicle tracking systems.

SAPTCO transports around 60 million passengers annually to various regions and countries and has achieved many accomplishments in the domestic and international transport sectors.

Marine vessels

In maritime services, the PIF holds a 22.55% stake in the Saudi National Shipping Company, Bahri, a global leader in logistics services and one of the prominent major shipping companies.

Bahri boasts a massive fleet of modern ships designed to the highest standards, enabling it to serve over 150 ports worldwide, establish a customer base both within and outside the Kingdom, and achieve a broad reputation for quality, reliability, and safety.

Cruise Saudi

The Saudi PIF has also ventured into the cruise market by launching Cruise Saudi, which is headquartered in Jeddah, on the Red Sea coast. The company aims to develop the necessary infrastructure and services to expand this market, in line with Vision 2030.

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Iranian Gas to Iraq Resumes After South Pars Attack

An Iranian man walks along the phase 15-16 of the South Pars gas field facilities in the southern Iranian port of Assaluyeh on the shore of the Gulf on January 22, 2014. (AFP)
An Iranian man walks along the phase 15-16 of the South Pars gas field facilities in the southern Iranian port of Assaluyeh on the shore of the Gulf on January 22, 2014. (AFP)
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Iranian Gas to Iraq Resumes After South Pars Attack

An Iranian man walks along the phase 15-16 of the South Pars gas field facilities in the southern Iranian port of Assaluyeh on the shore of the Gulf on January 22, 2014. (AFP)
An Iranian man walks along the phase 15-16 of the South Pars gas field facilities in the southern Iranian port of Assaluyeh on the shore of the Gulf on January 22, 2014. (AFP)

Iranian gas supplies to Iraq have resumed at a rate of five million cubic meters per day, the Iraqi electricity ministry said on Saturday, according ‌to the state ‌news agency.

Flows had ‌been ⁠halted after Israel ⁠attacked Iran's main gas field, South Pars, on Wednesday.

The current five million cubic meters is a fraction ⁠of the contracted 50 ‌million ‌cubic meters.

Iraqi officials ‌say volumes will increase gradually, ‌but have provided neither a timeframe nor details of the damage to ‌the Iranian gas facilities.

"Following the resumption of ⁠Iranian ⁠gas supplies, the national grid has recorded stability in production at 14,000 megawatts," Ahmed Moussa, an electricity ministry spokesperson, was quoted as saying by the state news agency.

Business

Trump to Be Guest of Honor at Saudi Arabia’s Future Investment Initiative Summit in Miami

Trump delivers a speech at last year's edition of the event. (Asharq Al-Awsat)
Trump delivers a speech at last year's edition of the event. (Asharq Al-Awsat)
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Trump to Be Guest of Honor at Saudi Arabia’s Future Investment Initiative Summit in Miami

Trump delivers a speech at last year's edition of the event. (Asharq Al-Awsat)
Trump delivers a speech at last year's edition of the event. (Asharq Al-Awsat)

The Future Investment Initiative (FII) Institute announced that US President Donald Trump will participate as a guest of honor and speaker at the fourth edition of the “Priority Future Investment Initiative” summit in Miami, scheduled to be held from March 25 to 27.

Trump is scheduled to deliver a keynote speech in person during the summit's closing session on March 27. The appearance marks the second time Trump has addressed this international gathering of leaders, investors, and decision-makers on the platform, reflecting the growing strategic importance of this summit in global economic circles.

Trump's participation comes at a very sensitive time for the global economy, which is reeling under the weight of escalating energy crises and sharp jumps in oil prices that have exceeded the $100 mark.

The global audience in Miami will be waiting to see Trump's vision on how to manage these developments and his philosophy towards the movement of capital in light of current geopolitical conflicts.

In last year's edition, Trump reaffirmed that the golden age of the United States had officially begun, considering the economic progress that had occurred since he took office to be "amazing."

This year's summit is being held under the slogan "Capital in Motion," where it seeks to explore how capital moves, adapts, and leads in a rapidly fragmenting world.

The agenda focuses intensively on the role of investment, technology, and policies in achieving sustainable and inclusive growth, while highlighting Latin America region and the Americas as a center of the current global transformation.

The summit brings together an elite group of senior officials, investors, and innovators, and prominent from the Saudi side is a high-level presence that includes the Governor of the Public Investment Fund and Chairman of the Board of Directors of the Future Investment Initiative Foundation Yasir Al-Rumayyan, Minister of Finance Mohammed Al-Jadaan, Minister of Tourism Ahmed Al-Khateeb, and the Ambassador of the Custodian of the Two Holy Mosques to the United States, Princess Reema bint Bandar Al Saud.

The list of speakers also includes prominent names, such as Steve Witkoff, the US envoy to the Middle East, and Dina Powell McCormick, Vice President of Meta, in addition to the participation of Donald Trump Jr.

The slogan of the fourth edition, "Capital in Motion," reflects an accelerated global reality that knows no stillness, where resources, talents, and ideas flow across borders, industries, and technologies at an unprecedented pace. In light of slowing global growth, persistently high interest rates for longer, and sharp geopolitical rifts, the summit is redrawing the map of investment returns.

The summit is expected to attract more than 1,500 delegates from around the world, forming an economic bridge linking the Middle East, the United States, and the emerging Latin American markets.

Business

IMF Says Gulf Buffers, Export Flexibility Can Absorb War Shock

IMF spokeswoman Julie Kozack speaks during a press conference. (Reuters file)
IMF spokeswoman Julie Kozack speaks during a press conference. (Reuters file)
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IMF Says Gulf Buffers, Export Flexibility Can Absorb War Shock

IMF spokeswoman Julie Kozack speaks during a press conference. (Reuters file)
IMF spokeswoman Julie Kozack speaks during a press conference. (Reuters file)

The International Monetary Fund said that the economic impact of the ongoing conflict on Gulf Cooperation Council (GCC) states will depend on its duration, scope and intensity, with strong financial buffers and export flexibility expected to limit the fallout.

IMF spokeswoman Julie Kozack noted that outcomes will vary by country, largely depending on geographic location and the ability to resume exports. She explained that higher oil prices could help some countries offset production losses either partially or fully, depending on how quickly export flows recover.

She pointed to the Gulf’s substantial sovereign buffers and solid economic foundations, built through years of structural reforms aimed at diversifying income and strengthening logistics infrastructure. These measures have improved the region’s resilience to external shocks.

The IMF’s assessment broadly aligns with recent analysis by ratings agency Standard & Poor’s, which highlighted Saudi Arabia’s East–West pipeline as a strategic alternative export route that reduces reliance on key maritime chokepoints.

Elevated oil prices may also compensate for declining output, while the region’s large financial reserves are expected to support a swift recovery once the conflict subsides.

Kozack also highlighted pressure on regional financial markets, with Gulf stock indices declining and bond spreads widening in line with global volatility driven by inflation concerns and rising geopolitical risks.

Economists broadly view the region’s ample financial assets and foreign reserves as a buffer that will support a quicker rebound. Lessons from past energy crises have also helped Gulf states develop more flexible financial and logistics systems.

Standard & Poor’s recently underscored Saudi Arabia’s strong fiscal position and stable credit rating, citing substantial financial buffers and prudent policies. It also noted that alternative export routes such as the East–West pipeline allow the Kingdom to bypass the Strait of Hormuz, reducing risks to trade and growth.

Inflation risk

At the global level, the IMF is closely monitoring disruptions to energy markets, warning that sustained price increases could drive inflation higher and slow economic growth.

Oil and gas prices have surged by more than 50 percent over the past month, with Brent crude rising above $100 per barrel. If maintained for a year, this could push global inflation up by about 40 basis points and reduce economic output by between 0.1 and 0.2 percent, according to the Fund.

The IMF has signaled it stands ready to support member states, although no requests for emergency financing have been received so far.

It remains in close contact with finance ministers and central bank governors as the conflict enters its third week with no clear end in sight.

Kozack added that central banks should closely monitor whether inflation pressures extend beyond energy prices and whether inflation expectations remain stable.

The Fund is expected to incorporate the impact of the conflict into its updated global economic forecasts, due in mid-April during its Spring Meetings with the World Bank.