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.



Saudi Airports Handle 141 Million Passengers in 2025 as Aircraft Fleet Expands

Travelers move through stanchion lines at the departure terminal of King Khalid International Airport in Riyadh. (AFP)
Travelers move through stanchion lines at the departure terminal of King Khalid International Airport in Riyadh. (AFP)
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Saudi Airports Handle 141 Million Passengers in 2025 as Aircraft Fleet Expands

Travelers move through stanchion lines at the departure terminal of King Khalid International Airport in Riyadh. (AFP)
Travelers move through stanchion lines at the departure terminal of King Khalid International Airport in Riyadh. (AFP)

Saudi Arabia’s airports handled 140.9 million passengers in 2025, marking another year of strong growth for the Kingdom’s aviation sector as the national aircraft fleet expanded by 33.8%, according to data released by the General Authority for Statistics.

The number of passengers traveling through Saudi airports rose 9.6% from 2024, reflecting the Kingdom’s accelerating push to strengthen its position as a regional travel hub and global aviation gateway.

International traffic accounted for 75.8 million passengers, up 9.4% year-on-year, while domestic passenger traffic increased 9.8% to 65.1 million. On average, Saudi airports handled around 207,700 international passengers and 178,600 domestic passengers a day.

King Abdulaziz International Airport in Jeddah remained the Kingdom’s busiest airport, handling 53.5 million passengers during the year, an increase of 9.0% from 2024. King Khalid International Airport in Riyadh followed with 40.8 million passengers, up 8.7%, while King Fahd International Airport in Dammam handled 13.7 million passengers, posting annual growth of 7.0%.

The increase in passenger traffic was accompanied by a rise in flight activity across the Kingdom’s airports. Total arriving and departing flights climbed 8.3% year-on-year to 979,800 flights in 2025, including 506,300 domestic flights, up 6.8%, and 473,500 international flights, up 9.9%.

King Abdulaziz International Airport also recorded the highest number of aircraft movements with 314,400 flights, followed by King Khalid International Airport with 296,800 flights and King Fahd International Airport with 108,500 flights.

Saudi Arabia’s aviation fleet recorded one of the strongest areas of growth during the year, with the total number of commercial and general aviation aircraft rising to 483 from the previous year’s level. The fleet included 266 commercial aircraft and 217 aircraft dedicated to general aviation.

Aircraft with capacities ranging from 151 to 250 seats accounted for the largest share of the commercial fleet at 120 aircraft, while the sector continued to modernize its operations, with 99 aircraft less than five years old.

The Kingdom also expanded its global air connectivity during 2025, with Saudi airports linked to 66 countries worldwide, up 1.5% from a year earlier. The total number of domestic and international destinations connected to the Kingdom rose 2.3% to 176 destinations.

Saudi Arabia ranked 18th globally in the 2025 Air Connectivity Index, underscoring the sector’s growing international reach.

Saudia accounted for the largest share of flights operating in Saudi airspace at 25.5%, followed by low-cost carrier flynas at 13.3% and flyadeal at 8.6%.

Air cargo volumes handled through Saudi airports totaled 1.18 million metric tons in 2025, with imports accounting for the largest share at 695,600 tons. Transit cargo reached nearly 420,100 tons, while exports exceeded 69,700 tons.

March recorded the highest monthly cargo throughput of the year, with more than 113,400 tons handled during the month.

The Kingdom also continued to expand logistics infrastructure at its main airports to support cargo growth and broader supply chain ambitions. King Fahd International Airport operated nine cargo facilities, while King Khalid International Airport had eight facilities and King Abdulaziz International Airport operated four integrated cargo facilities.

The expansion forms part of Saudi Arabia’s strategy to position itself as a global logistics hub linking Asia, Africa and Europe.


Supertanker with Iraqi Oil Heads for Vietnam After Hold-up in US Blockade

Tankers are seen off the coast of the Fujairah, as Iran vows to close the Strait of Hormuz, amid the US-Israel conflict with Iran, in Fujairah, United Arab Emirates, March 3, 2026. (Reuters)
Tankers are seen off the coast of the Fujairah, as Iran vows to close the Strait of Hormuz, amid the US-Israel conflict with Iran, in Fujairah, United Arab Emirates, March 3, 2026. (Reuters)
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Supertanker with Iraqi Oil Heads for Vietnam After Hold-up in US Blockade

Tankers are seen off the coast of the Fujairah, as Iran vows to close the Strait of Hormuz, amid the US-Israel conflict with Iran, in Fujairah, United Arab Emirates, March 3, 2026. (Reuters)
Tankers are seen off the coast of the Fujairah, as Iran vows to close the Strait of Hormuz, amid the US-Israel conflict with Iran, in Fujairah, United Arab Emirates, March 3, 2026. (Reuters)

Supertanker Agios Fanourios I is heading for Vietnam to discharge its Iraqi crude oil cargo after it was held by the US Navy for five days in the Gulf of Oman, the vessel's manager said on Monday.

The Maltese-flagged Very Large Crude Carrier sailed out of the Strait of Hormuz on May 10 and was sailing in the Gulf of Oman before making a ‌U-turn on ‌May 11.

It resumed its journey ‌toward ⁠Vietnam on May 16 ⁠and is expected to arrive at the Nghi Son refinery on May 30, LSEG shipping data showed.

A VLCC can carry a maximum of two million barrels of oil.

A source at the vessel's Athens-based manager Eastern Mediterranean Maritime, who spoke on condition of ⁠anonymity, confirmed that the tanker was sailing ‌on to Vietnam after ‌it had received US Navy approval.

The US military's Central Command ‌said last week that the vessel was redirected as ‌part of ongoing enforcement of the blockade against Iran.

At least two other crude tankers sailed from the strait last week, but overall crude traffic through the strait has ‌remained limited.

Before the war on Iran began, the Strait of Hormuz was the conduit ⁠for 20% ⁠of the world's energy supplies, equating to 125 to 140 daily passages.

"Shipping confidence around Hormuz is still very weak," ship broker Clarksons said in a note on Monday.

A further 12 ships crossed the strait in the past 24 hours, including two liquefied petroleum gas tankers bound for India, according to satellite analysis from data analytics specialists SynMax.

A separate LPG tanker was sailing through the strait on Monday also bound for India, data on the MarineTraffic platform showed.


Asian Markets Cautious, Oil Dips after Trump Holds Off on Iran Attack

Vessels are seen anchored in the Strait of Hormuz, off the port city of Khasab on Oman's northern Musandam Peninsula on May 17, 2026. AFP
Vessels are seen anchored in the Strait of Hormuz, off the port city of Khasab on Oman's northern Musandam Peninsula on May 17, 2026. AFP
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Asian Markets Cautious, Oil Dips after Trump Holds Off on Iran Attack

Vessels are seen anchored in the Strait of Hormuz, off the port city of Khasab on Oman's northern Musandam Peninsula on May 17, 2026. AFP
Vessels are seen anchored in the Strait of Hormuz, off the port city of Khasab on Oman's northern Musandam Peninsula on May 17, 2026. AFP

Asian markets were mixed Tuesday as oil prices eased on hopes of a US-Iran deal, though elevated crude levels capped investor appetite for risk.

Energy markets held center stage after US President Donald Trump signaled "serious negotiations" with Tehran and called off planned strikes, boosting optimism that tensions could.

The war the United States and Israel launched February 28 has led to an effective blockade of the Strait of Hormuz, through which around 20 percent of global oil exports passed in peacetime.

The leaders of Qatar, Saudi Arabia and the United Arab Emirates asked him "to hold off on our planned Military attack of the Islamic Republic of Iran, which was scheduled for tomorrow, in that serious negotiations are now taking place", Trump wrote on his Truth Social platform.

But Trump added that he instructed the US military to be "prepared to go forward with a full, large scale assault of Iran, on a moment's notice, in the event that an acceptable Deal is not reached".

Speaking later at a White House event, Trump said there had been a "very positive development" and that Arab allies said a deal was near that would leave Iran without nuclear weapons, which Tehran denies pursuing.

"There seems to be a very good chance that they can work something out. If we can do that without bombing the hell out of them, I'd be very happy," Trump said.

However, he also warned the United States was prepared to launch a "full, large-scale assault" if negotiations collapse, underscoring the fragility of the situation.

Oil dipped on the prospect of diplomacy, but the move offered only limited relief after weeks of volatility driven by the Middle East conflict.

International benchmark Brent was hovering around $109 while West Texas Intermediate at $107.

Equity performance wavered.

Tokyo's Nikkei 225 opened lower, with local jitters offset by local resilience. Japan's gross domestic product expanded 0.5 percent in the first quarter, exceeding market forecasts of 0.4 percent.

Seoul's Kospi slid by more than four percent, with tech stocks losing ground after taking their lead from Wall Street. Shanghai, Taipei and Jakarta also slid.

Hong Kong, Sydney and Wellington were ahead.

Safe-haven demand was higher, with both gold and silver edging up, suggesting investors remain wary.

All eyes are on Wednesday's quarterly results from US chip titan Nvidia, which will be scrutinized as investors question whether huge spending on AI data centers is justified by potential returns.