Saudi Arabia's PIF Shifts from Launching Opportunities to Accelerating Growth

During a ministerial session, Saudi ministers emphasized that the partnership between PIF and the private sector is the main engine of Saudi Arabia’s economic transformation. (Asharq Al-Awsat)
During a ministerial session, Saudi ministers emphasized that the partnership between PIF and the private sector is the main engine of Saudi Arabia’s economic transformation. (Asharq Al-Awsat)
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Saudi Arabia's PIF Shifts from Launching Opportunities to Accelerating Growth

During a ministerial session, Saudi ministers emphasized that the partnership between PIF and the private sector is the main engine of Saudi Arabia’s economic transformation. (Asharq Al-Awsat)
During a ministerial session, Saudi ministers emphasized that the partnership between PIF and the private sector is the main engine of Saudi Arabia’s economic transformation. (Asharq Al-Awsat)

In line with the objectives of the third phase of Saudi Vision 2030 and the Public Investment Fund’s (PIF) five-year strategy, Saudi Arabia’s sovereign wealth fund is moving from building sectors to integrating ecosystems, and from launching opportunities to accelerating growth, backed by an open invitation to the private sector to invest and partner in shaping a diversified, resilient economy.

This was outlined by PIF Governor Yasir Al-Rumayyan during the PIF–Private Sector Forum held in Riyadh on Monday.

Al-Rumayyan said the forum has become the largest platform of its kind for capturing partnership and collaboration opportunities with companies, noting that participation has reached 25,000 leaders from the public and private sectors and investors from Saudi Arabia and abroad since 2023.

“In the previous edition, we succeeded in turning dialogue into tangible opportunities for the private sector through programs and initiatives that supported business-environment growth,” he said, adding that more than 140 agreements worth over SAR 15 billion ($4 billion) were signed during the last forum.

Al-Rumayyan explained that PIF is working with the private sector to deepen impact and build an integrated economic ecosystem that drives sustainable growth.

This approach aligns with the investment cycle, beginning with risk-taking to build strategic sectors, establish national champions, and launch initiatives that stimulate local content spending, localize supply chains, develop domestic capabilities and industries, and expand infrastructure, he explained.

He noted that the impact of PIF’s programs and initiatives to strengthen private-sector partnerships has become evident. Spending on local content by PIF and its portfolio companies reached SAR 591 billion ($157.6 billion) between 2020 and 2024, supported by the Musahama Local Content Development Program.

According to Al-Rumayyan, the Contractor Financing Program enabled the execution of PIF projects worth more than SAR 10 billion ($2.6 billion) through innovative financing solutions, raising the participation rate of local contractors in PIF projects to 67 percent in 2025.

PIF has also offered the private sector more than 190 investment opportunities valued at over SAR 40 billion ($10.6 billion) through international partnerships and supply-chain localization, he added.

“The impact has not been limited to financing,” he said. “It has extended to enhancing corporate readiness, building national talent, and creating high-quality jobs, within an ecosystem that applies the highest standards of efficiency, transparency, and governance.”

During a ministerial session, Saudi ministers emphasized that the partnership between PIF and the private sector is the main engine of the Kingdom's economic transformation, driving investment inflows, building new value chains, and empowering non-oil sectors in line with Vision 2030 targets.

Minister of Investment Khalid Al-Falih said a key objective of PIF is to catalyze an unprecedented shift from an oil-dependent rentier economy to a diversified, sustainable one.

The National Investment Strategy, launched in Oct. 2022, aims to inject SAR 12 trillion by 2030, he stressed. More than SAR 6.2 trillion has already been achieved in three and a half years, lifting investment contribution to 30 percent of GDP.

Investment in the non-oil economy has exceeded 40 percent, with PIF contributing about SAR 650 billion of total investments, while over 65 percent came from private-sector institutions, he remarked.

He highlighted a tenfold increase in registered investment companies and a rise in firms using Saudi Arabia as a regional headquarters, from five to around 700.

Meanwhile, Minister of Transport Saleh Al-Jasser said the Kingdom attracted SAR 25 billion in private investment through privatization projects, while total private-sector investment in transport exceeded SAR 250 billion since the launch of the national strategy in mid-2021.

He revealed 16 current investment opportunities across airports, roads, maritime transport, and logistics.

Minister of Municipalities and Housing Majed Al-Hogail said improving municipal-sector efficiency depends heavily on private-sector participation.

He noted that 12 of 21 services identified as eligible for privatization in major cities have been completed, representing about 40 percent of the target. The municipal sector oversees more than seven million workers, around 970,000 establishments, and more than 2,450 professions.

In industry and mining, Minister Bandar AlKhorayef said Saudi Arabia has become a leading global investment destination. He outlined PIF’s three roles: direct investment in promising sectors, building major supply chains, and elevating challenges to policymakers to improve regulations.

He added that adopting Industry 4.0 and artificial intelligence accelerates project delivery and strengthens competitiveness.

Tourism Minister Ahmed Al-Khateeb said tourism has become a key driver of economic diversification. Its contribution to GDP rose from 3.5 percent in 2019 to about 5 percent by the end of 2025, with a target of 10 percent.

Employment in the sector has exceeded one million jobs, while committed investments between 2020 and 2030 amount to about SAR 450 billion, split evenly between PIF and the private sector, he revealed.

He stressed that globally, tourism is run by the private sector as both investor and operator.

The PIF–Private Sector Forum serves as a platform linking supply and demand by connecting PIF portfolio companies with government entities, investors, and private firms. It opens new horizons for partnerships and a new wave of projects that empower the private sector and strengthen its role in the national economy, supporting business growth and the future of the Saudi economy.



'Handful' of G20 Countries Reject US Stance on Excess Industrial Capacity

US Trade Representative Jamison Greer speaks on the second day of the G20 Trade Ministerial Meeting in Milwaukee, Wisconsin - October 1 (AFP)
US Trade Representative Jamison Greer speaks on the second day of the G20 Trade Ministerial Meeting in Milwaukee, Wisconsin - October 1 (AFP)
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'Handful' of G20 Countries Reject US Stance on Excess Industrial Capacity

US Trade Representative Jamison Greer speaks on the second day of the G20 Trade Ministerial Meeting in Milwaukee, Wisconsin - October 1 (AFP)
US Trade Representative Jamison Greer speaks on the second day of the G20 Trade Ministerial Meeting in Milwaukee, Wisconsin - October 1 (AFP)

A "handful" of Group of 20 trade ministers rejected US calls to curb excess industrial capacity and "non-market" policies, the US Trade Representative's office said on Friday, exposing divisions within the group of major economies.

The US, this year's G20 chair, issued the statement a day after a trade meeting in Milwaukee that revealed that only two countries — Mexico and Argentina — signed on to a US-led statement calling for more work and cooperation to eliminate goods produced with forced labor from supply chains, Reuters reported.

The rejection from the vast majority of G20 countries follows the Trump administration's imposition of ‌tariffs of 10% or ‌12.5% on goods from 59 countries and the European Union over allegations ‌that ⁠they fail to ⁠adequately enforce bans on forced labor.

USTR also is conducting a second "Section 301" tariff investigation into 16 trading partners that show signs of excess industrial capacity. The probe is widely expected to lead to new duties in coming months.

The USTR statement did not name countries that objected to the excess-capacity statement. But China had objected to a similar G20 statement denouncing forced labor and non-market economic policies that lead to excessive exports at a finance leaders' meeting a month ago in North Carolina.

"The draft ministerial statement was supported by all but a handful ⁠of members, a few of whom firmly rejected creating this pathway toward cooperative ‌action" on excess capacity, the statement said, adding that this "severely ‌disappointed" the US G20 presidency.

China's excess industrial capacity and industrial subsidies have been key themes of the US-led G20 ministerial ‌meetings so far this year. Beijing has rejected claims that its industrial policies have created excess capacity, ‌accusing Western countries of using the issue to justify protectionist measures.

The US said that G20 trade ministers reached consensus on denouncing the weaponization of food trade, with members agreeing that trade in food or agricultural inputs should not be used as a tool for economic or political coercion.

In that G20 joint statement, the ministers defined the weaponization of ‌food as measures to "slow, stop, block or direct the flow of food and agricultural inputs" to exert coercive pressure to extract unrelated geopolitical concessions.

"We ⁠condemn food weaponization, as ⁠it poses a significant humanitarian and economic threat," the G20 trade ministers said.

After pressure from US President Donald Trump that included the threat of a US diesel export ban, Group of Seven countries on Friday agreed to release some 100 million barrels of diesel reserves to try to drive down record-high US diesel prices. The fuel is widely used in agricultural production.

TARIFF STRUCTURE DISCUSSIONS

US Trade Representative Jamieson Greer said on Thursday that he did not seek a joint statement on a fourth discussion topic, reforming the "most favored nation" system of published, unconditional global tariff rates that underpin the World Trade Organization. MFN tariffs have defined the global trading system since the end of World War Two.

Greer has argued that the MFN principle has been abused by non-market-oriented economies such as China that have subsidized industries, but it does not allow these countries to be treated differently.

The US statement said some G20 members had expressed a willingness to consider changes to MFN, including expanding exceptions to the principle and issuing new legal interpretations to enable greater use of existing exceptions.


DOJ Will Not Reopen Criminal Probe into Fed's Powell

(FILES) US Federal Reserve Chair Jerome Powell speaks during a press conference following the Federal Open Market Committee meeting at the Federal Reserve Board Building in Washington, DC, on March 18, 2026. (Photo by Brendan SMIALOWSKI / AFP)
(FILES) US Federal Reserve Chair Jerome Powell speaks during a press conference following the Federal Open Market Committee meeting at the Federal Reserve Board Building in Washington, DC, on March 18, 2026. (Photo by Brendan SMIALOWSKI / AFP)
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DOJ Will Not Reopen Criminal Probe into Fed's Powell

(FILES) US Federal Reserve Chair Jerome Powell speaks during a press conference following the Federal Open Market Committee meeting at the Federal Reserve Board Building in Washington, DC, on March 18, 2026. (Photo by Brendan SMIALOWSKI / AFP)
(FILES) US Federal Reserve Chair Jerome Powell speaks during a press conference following the Federal Open Market Committee meeting at the Federal Reserve Board Building in Washington, DC, on March 18, 2026. (Photo by Brendan SMIALOWSKI / AFP)

The US Justice Department is not reopening a criminal probe into former Federal Reserve Chair Jerome Powell for cost overruns related to the central bank's building renovation project, a DOJ spokesperson said on Friday.

Attorney General Todd Blanche, in comments to Bloomberg News, which first reported the development, said he ‌has not ruled out ‌continuing to look into ‌the ⁠project's oversight and potentially ⁠take action if evidence of wrongdoing came to light.

The Fed's Inspector General on Wednesday said it found no grounds for a criminal referral or evidence of administrative misconduct tied to the project cost overruns, ⁠but its conclusion there was lax ‌oversight drew a ‌fresh call from President Donald Trump for Powell's ‌resignation. Powell has remained at the ‌Fed as a governor since stepping down as chair in May.

His successor Fed Chairman Kevin Warsh said on Thursday he would hire an independent ‌auditor to "verify accuracy and compliance" for all of the project's costs.

Blanche told ⁠Bloomberg ⁠News that if this new review finds any evidence of criminal wrongdoing, the Justice Department could investigate.

At his final press conference as Fed chief in April, Powell said he would not leave the Board "until this investigation is well and truly over, with transparency and finality."

A Fed spokesperson had no immediate comment on Blanche's statements.


Copper Crawls Higher on Softer Dollar and Supply Issues

FILE PHOTO: A coil of copper rod sits on the production line for copper flat wire at the Wellascent factory in Ganzhou, Jiangxi province, China, August 14, 2025. REUTERS/Florence Lo/File Photo
FILE PHOTO: A coil of copper rod sits on the production line for copper flat wire at the Wellascent factory in Ganzhou, Jiangxi province, China, August 14, 2025. REUTERS/Florence Lo/File Photo
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Copper Crawls Higher on Softer Dollar and Supply Issues

FILE PHOTO: A coil of copper rod sits on the production line for copper flat wire at the Wellascent factory in Ganzhou, Jiangxi province, China, August 14, 2025. REUTERS/Florence Lo/File Photo
FILE PHOTO: A coil of copper rod sits on the production line for copper flat wire at the Wellascent factory in Ganzhou, Jiangxi province, China, August 14, 2025. REUTERS/Florence Lo/File Photo

Copper prices edged higher on Friday, supported by a weaker dollar and supply issues, but gains were modest due to worries about high oil prices hitting demand.

Benchmark three-month copper on the London Metal Exchange rose 0.5% to $14,319 a metric ton in official open-outcry trading. That marked a decline of 2% since the end of last week.

"Metals have seen light turnover again so far this session with copper finding some support with a slightly softer dollar, but the broader tone remains cautious," Neil Welsh, head of metals at broker Britannia Global Markets, said in a note.

"High energy costs stemming from the ⁠ongoing US-Iran conflict and ⁠signs of industrial weakness in China have weighed on sentiment across the complex."

The dollar index hit its strongest in 17 months this week, but weakened on Friday, making commodities priced in the US currency cheaper for buyers using other currencies.

LME copper has gained 16% over the past six months, largely due to a large shift in ⁠inventories to the US attracted by the prospect of tariffs there, creating shortages elsewhere.

Stocks in warehouses monitored by the Shanghai Futures Exchange <CU-STX-SGH> have slumped by 79% over the past four months to 38,744 tons, their lowest since January 2024.

The SHFE was closed for China's National Day and will reopen on October 8.

The prospect of less output in the world's largest copper producer Chile has also underpinned the market, with data on Wednesday showing production fell 12.8% year-on-year in August.

Supervisors at Chile's Escondida copper mine, the world's largest, rejected a collective ⁠contract offer, ⁠paving the way for a potential strike and adding to supply fears.

"This adds to an overall slump in output, as the industry struggles to maintain aging infrastructure amid difficult operating conditions," Reuters quoted Daniel Hynes, senior commodity strategist at ANZ, as saying in a note.

Among other metals, LME aluminium dipped 0.1% in official activity to $3,121.50 a ton and nickel also shed 0.1% to $15,620.

Zinc rose 0.2% to $3,732.50, lead ticked 0.3% higher to $1,863 and tin was little changed at $54,350.