عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Arabia Strengthens Private Sector Collaboration at PIF Forum

Gatherers at the second edition of the PIF and Private Sector Forum. (PIF and Private Sector Forum)
Gatherers at the second edition of the PIF and Private Sector Forum. (PIF and Private Sector Forum)
TT
TT

Saudi Arabia Strengthens Private Sector Collaboration at PIF Forum

Gatherers at the second edition of the PIF and Private Sector Forum. (PIF and Private Sector Forum)
Gatherers at the second edition of the PIF and Private Sector Forum. (PIF and Private Sector Forum)

Saudi Arabia is intensifying efforts to boost private sector contributions to its economy and attract foreign investments, aligning with Vision 2030’s goal of reducing reliance on oil. The Public Investment Fund (PIF) plays a pivotal role in this transformation by fostering an attractive investment climate and establishing new economic sectors.

A key platform driving this initiative is the 2025 PIF and Private Sector Forum, which launches on Wednesday in its third edition. The forum serves as a bridge between PIF, its subsidiaries, and private enterprises, reinforcing partnerships to accelerate economic diversification.

The Kingdom aims to increase the private sector’s share of GDP to 65% by 2030. To achieve this goal, the government has implemented economic reforms to enhance business operations, digitize government services and create financing programs, incubators and accelerators to support private enterprises.

PIF has been instrumental in unlocking previously untapped non-oil sectors, providing new investment opportunities. Local businesses have capitalized on these developments, contributing to sectoral growth and national economic expansion.

Private sector contribution

Since the launch of Vision 2030, Saudi Arabia has made significant strides in attracting foreign investments and bolstering private sector activity. In January 2025, the Kingdom’s non-oil economy recorded its strongest performance in over a decade.

The Riyad Bank Purchasing Managers’ Index (PMI) surged from 58.4 in December 2024 to 60.5 in January 2025, marking its highest level since September 2014. The PMI, a key economic indicator, reflects improvements in private sector conditions.

The country’s economy grew by 1.3% in 2024, driven by a 4.3% expansion in non-oil activities, while the oil sector experienced contraction. The Ministry of Finance had projected a 0.8% GDP growth for the year, while the International Monetary Fund (IMF) estimated a 1.4% expansion.

Managing assets worth approximately $930 billion, PIF plans to reduce its international investment share from 30% to 18-20%, emphasizing domestic development projects.

“Most of PIF’s investments focus on national development initiatives,” stated PIF Governor Yasir Al-Rumayyan at the Future Investment Initiative conference.

Strategic sectors

Dr. Moodhi Al-Otaibi, Assistant Professor of Economics at Al Yamamah University, highlighted PIF’s essential role in achieving Vision 2030 through active contributions to local and global economic frameworks. This has positioned Saudi Arabia as a leading investment hub, fostering economic transformation and private sector growth.

She emphasized the private sector as the Kingdom’s long-term strategic partner, noting PIF’s commitment to enhancing local content. The fund focuses on 13 key industries, including housing, tourism, hospitality and entertainment, while also driving innovation.

PIF’s investment portfolio includes 99 companies that have significantly contributed to localization and economic diversification. The fund has introduced several targeted initiatives, such as Mosaahama (Contribution), Business Accelerator, and the PIF SME Program, to empower private enterprises and connect them with emerging opportunities.

The PIF and Private Sector Forum has seen rapid growth in participation over its past two editions. Attendee numbers surged from 4,000 in 2023 to 9,000 in 2024, while the number of PIF portfolio company booths expanded from 50 to 83. The forum also facilitated agreements and memorandums of understanding worth approximately SAR 17 billion ($4.5 billion).

The 2025 edition is expected to host 1,000 high-profile participants from public and private sectors. Over 120 speakers will take part in discussions, with extensive media coverage from more than 40 local and international outlets.

Most Viewed

 
 
Business

Saudi GDP Grows 2.8% in First Quarter

The Saudi capital, Riyadh (SPA)
The Saudi capital, Riyadh (SPA)
TT
TT

Saudi GDP Grows 2.8% in First Quarter

The Saudi capital, Riyadh (SPA)
The Saudi capital, Riyadh (SPA)

Saudi Arabia's real gross domestic product grew 2.8% in the first quarter, year-on-year, preliminary government estimates showed on Thursday.

Non-oil activities grew 2.8% in the quarter, and oil activities increased 2.3% from the prior-year period, the General Authority of Statistics data ⁠showed.

On a quarterly basis, growth shrank 1.5% in the three months to March 31 compared to the fourth quarter, driven by a decline in oil activities.

Oil activity decreased 7.2% from the fourth quarter, while non-oil activity was almost flat.

Business

IMF Warns Asia to Keep Policy in Balance Amid Energy Disruptions

FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier/File Photo
FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier/File Photo
TT
TT

IMF Warns Asia to Keep Policy in Balance Amid Energy Disruptions

FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier/File Photo
FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., US, November 24, 2024. REUTERS/Benoit Tessier/File Photo

Asian countries will need to keep their powder dry in preparation for future shocks even as they tackle an energy crisis caused by the Iran War, IMF Director for Asia Pacific Krishna Srinivasan said on Thursday.

With energy supplies running short due to the logjam in the Strait of Hormuz, southeast Asian economies have budgeted significant sums to cushion the impact of surging prices, and have also introduced measures to conserve energy, including work from home plans.

But Srinivasan, speaking at a media roundtable, warned countries against ramping up energy subsidies.

"If you give generalised subsidies, it's very hard to pull it back," he said, adding that countries should instead provide budget neutral ⁠and targeted fiscal ⁠support, and maintain fiscal discipline.

"In other words, cut elsewhere to support people who are being hit by the energy shock," Reuters quoted him as saying.

Srinivasan said that while some markets, such as Thailand and China, can hold off on tightening monetary policy because they are in deflationary territory, markets already above their inflation targets, including Australia, need to start now.

He also ⁠noted that some markets, such as the Philippines, have decided to tighten preemptively to anchor inflation expectations, but he added that the IMF's advice would have been to see through the shock and wait to see if inflation really picks up in a meaningful way.

"You may want to take insurance upfront or you may want to wait and see so that you don't hurt growth ... it's a very difficult balance to strike as a central bank governor," he said.

The IMF cut its global GDP outlook for 2026 to 3.1% on April 14, assuming ⁠a short-lived Middle ⁠East conflict and oil prices normalising in the second half of the year.

However, IMF chief economist Pierre-Olivier Gourinchas warned that the fund's "adverse scenario" of 2.5% growth looked increasingly likely, with continued energy disruptions and no clear path to end the conflict.

Srinivasan said that if the Strait of Hormuz remains closed beyond the next three months and oil prices stay elevated for the rest of the year, the IMF's more severe growth scenarios will become more likely.

There are still downside risks to growth, with a number of uncertainties facing the world economy, including the duration of the energy crisis and the severity of fertiliser shortages, which could create a food supply shock, he said.

Business

Euro Zone Inflation Soars Further Above ECB Target

FILE -Clouds cover the sky over the headquarters of the European Central Bank in Frankfurt, Germany, Sept. 11, 2025. (AP Photo/Michael Probst, File)
FILE -Clouds cover the sky over the headquarters of the European Central Bank in Frankfurt, Germany, Sept. 11, 2025. (AP Photo/Michael Probst, File)
TT
TT

Euro Zone Inflation Soars Further Above ECB Target

FILE -Clouds cover the sky over the headquarters of the European Central Bank in Frankfurt, Germany, Sept. 11, 2025. (AP Photo/Michael Probst, File)
FILE -Clouds cover the sky over the headquarters of the European Central Bank in Frankfurt, Germany, Sept. 11, 2025. (AP Photo/Michael Probst, File)

Euro zone inflation surged further in April on soaring energy costs, Eurostat data showed on Thursday, adding to the case for interest rate hikes, even if benign underlying price growth figures ease the urgency of any move.

Inflation in the 21 countries sharing the euro currency jumped to 3.0% this month from 2.6% in March, moving further above the European Central Bank's 2% target, with energy costs accounting for the vast majority of the increase.

A closely watched figure ⁠on underlying or 'core' ⁠inflation, which excludes volatile food and energy prices, meanwhile slowed to 2.2% from 2.3% a month earlier.

Services inflation, a stubbornly high component of the price basket over the past several years, slowed to 3.0% from 3.2% while inflation for non-energy industrial ⁠goods, a key drag on prices picked up to 0.8%.

The figures are a mixed bag for the ECB, which is meeting on Thursday and will likely keep interest rates unchanged, even if it signals that policy tightening is increasingly likely, Reuters reported.

The high headline inflation print strengthens the argument for interest rate hikes but the underlying figures suggest that the initial energy shock is not yet creating major ⁠second round effects.

The ⁠ECB is largely powerless against an energy shock but must step in if these second round effects become visible as they risk creating a hard-to-break self-sustaining inflation spiral.

This is why investors expect the ECB to hike its 2% deposit rate already in June and see at least two more moves before the end of the year.

This outlook is volatile, however, and largely depends on developments in the Iran war and oil prices, which hit a four-year-high of $124 on Thursday.