PIF, Goldman Sachs Asset Management Sign MoU to Partner on Investment in Saudi Arabia, GCC 

Officials are seen at the signing agreement on Monday. (SPA)
Officials are seen at the signing agreement on Monday. (SPA)
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PIF, Goldman Sachs Asset Management Sign MoU to Partner on Investment in Saudi Arabia, GCC 

Officials are seen at the signing agreement on Monday. (SPA)
Officials are seen at the signing agreement on Monday. (SPA)

Saudi Arabia's Public Investment Fund (PIF) and Goldman Sachs Asset Management announced on Monday the signing of a non-binding memorandum of understanding (MoU) for PIF to act as a strategic anchor investor for new private credit and public equity strategies in Saudi Arabia and the wider GCC region.

The new investment funds will aim to raise equity capital from international investors, with significant capital allocated for investments in Saudi Arabia.

The MoU would further strengthen the domestic asset management industry and encourage regional and international managers to expand their presence in Saudi Arabia. Asset management is part of PIF's wider efforts to diversify the Saudi economy and enhance local capital markets.

Deputy Governor and Head of MENA Investments at PIF Yazeed A. Al-Humied said: “PIF's collaboration with Goldman Sachs Asset Management demonstrates our continued efforts to build new partnerships with a diverse range of leading international financial institutions, enhancing local markets.”

“MoU is another element in PIF's strategy of attracting global capital and expertise from a wide range of investors to the region while facilitating knowledge transfer and capacity-building within Saudi Arabia,” he stressed.

Global Head of Asset and Wealth Management at Goldman Sachs Marc Nachmann said: “We are proud to partner with PIF to develop these investment strategies, which we believe can offer strong risk-adjusted returns to our clients.”

“Drawing on our decades of experience investing in public and private markets, our aim is to help clients access the dynamic opportunities created by Saudi Arabia and the wider GCC's rapid economic transformation. We are excited to see this partnership expand and to continue building our presence in Saudi Arabia,” he added.

Under the MoU, the private credit strategy will target directly originated senior and junior loans and debt to companies that are domiciled in the GCC region or do most of their business with it. The public equity strategies will focus on investments in publicly listed equity securities of companies that are either listed on the Saudi exchange or have businesses connected to Saudi Arabia.

The partnership will facilitate knowledge-sharing to spur growth of the Saudi asset management sector. By leveraging PIF's institutional strength and Goldman Sachs Asset Management's experience investing across public and private markets, it will contribute toward PIF's goal of positioning Saudi Arabia as a hub for global investment.

Goldman Sachs has been growing its presence in Saudi Arabia over recent years, having recently announced the opening of a new office in Riyadh. The company will explore expanding its local footprint as part of the partnership.

Monday's non-binding MoU remains subject to the satisfaction of certain required conditions including obtaining all necessary regulatory and internal approvals, among other milestones.



IATA: Air Cargo Demand Up 2.2% Despite Trade Disruptions

The International Air Transport Association (IATA) logo is seen at the International Tourism Trade Fair ITB in Berlin, Germany, March 7, 2018. REUTERS/Fabrizio Bensch 
The International Air Transport Association (IATA) logo is seen at the International Tourism Trade Fair ITB in Berlin, Germany, March 7, 2018. REUTERS/Fabrizio Bensch 
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IATA: Air Cargo Demand Up 2.2% Despite Trade Disruptions

The International Air Transport Association (IATA) logo is seen at the International Tourism Trade Fair ITB in Berlin, Germany, March 7, 2018. REUTERS/Fabrizio Bensch 
The International Air Transport Association (IATA) logo is seen at the International Tourism Trade Fair ITB in Berlin, Germany, March 7, 2018. REUTERS/Fabrizio Bensch 

Total air cargo demand, measured in cargo ton-kilometers (CTK), rose by 2.2% compared to May 2024 levels, up 3.0% for international operations, according to the International Air Transport Association (IATA).

Also, capacity, measured in available cargo ton-kilometers (ACTK), increased by 2% compared to May 2024, up 2.6% for international operations.

The Association said several factors in the operating environment should be noted, including year-on-year world industrial production, which rose 2.6% in April 2025.

Meanwhile, air cargo volumes grew 6.8% over the same period, outpacing global goods trade growth of 3.8%.

IATA said jet fuel prices in May 2025 were 18.8% lower than the previous year and 4.3% below the previous month.

It noted that global manufacturing contracted in May, with the PMI falling to 49.1, below the 50 mark that signals growth.

New export orders also remained in negative territory at 48, reflecting pressure from recent US trade policy changes, the Association revealed.

Global manufacturing output, measured by the PMI, dropped below the 50 threshold to 49.1 in May, for the first time in 2025.

This, IATA said, was a 6.9% year-on-year decrease and a 2.8% drop compared to April 2025, indicating a slight weakening in global manufacturing production compared to April 2025.

Meanwhile, output declined in May, new export orders grew 1.6 index points from April, to 48. New export orders have been directly affected by the US trade policy changes, which have reshaped global demand dynamics and impacted trade flows.

Willie Walsh, IATA’s Director General, said the rise of cargo demand globally by 2.2% in May is encouraging news as a 10.7% drop in traffic on the Asia to North America trade lane illustrated the dampening effect of shifting US trade policies.

“Even as these policies evolve, already we can see the air cargo sector’s well-tested resilience helping shippers to accommodate supply chain needs to flexibly hold back, re-route or accelerate deliveries,” he said.

Meanwhile, carriers in the Middle East continued to build momentum, expanding for the second consecutive month. The region recorded a 3.6% year-on-year rise and capacity increased by 4.2%.

Asia Pacific posted the strongest growth, up 8.3% year-on-year while capacity increased by 5.7%.

In return, North American carriers saw a -5.8% year-on-year decrease in growth for air cargo in May, the slowest growth of all regions. Capacity decreased by -3.2%.

European carriers saw 1.6% year-on-year demand growth for air cargo in May. Capacity increased 1.5%.

Also, Latin American carriers saw a 3.1% year-on-year increase in demand growth for air cargo in May. Capacity increased 3.5%.

As for African airlines, they saw a 2.1% year-on-year decrease in demand for air cargo in May. Capacity increased by 2.7%.

Trade Lane Growth

A significant decrease in the Asia-North America trade lane was expected and realized as the effect of front-loading faded and changes to the de-minimis exemption on small package shipments were enforced.

As cargo flows reorganized, several route areas responded with surprising growth, IATA said.