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)
TT

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 Airlines Compete Against Post-Summer Slump With Cost-Cutting Offers

Prince Mohammad bin Abdulaziz International Airport in Medina (SPA)
Prince Mohammad bin Abdulaziz International Airport in Medina (SPA)
TT

Saudi Airlines Compete Against Post-Summer Slump With Cost-Cutting Offers

Prince Mohammad bin Abdulaziz International Airport in Medina (SPA)
Prince Mohammad bin Abdulaziz International Airport in Medina (SPA)

As travel activity returns to normal levels following a busy summer season and the start of the academic year, Saudi airlines have opened the door to price competition, offering discounts of up to 50 percent. Through these offers, national carriers aim to maintain booking momentum and encourage families and travelers to seize lower-cost travel opportunities outside peak periods.

Riyadh Air, flynas, and Saudia are offering varying deals on a number of international flights and destinations, including ticket price reductions and incentives linked to loyalty programs, as airlines seek to attract travelers during periods following the holiday season.

Financial and economic adviser Dr. Hussein Al-Attas told Asharq Al-Awsat that airline price offers come at an important time, particularly as the summer holiday season ends and demand shifts from its peak to more normal levels. He said lower prices could encourage some consumers to travel during less crowded periods and help airlines maintain good load factors rather than suffer a sharp decline in demand after the season ends.

Al-Attas explained that lower airfares could affect travelers' overall spending, allowing families to redirect part of the money that would otherwise have gone toward airline tickets to hotels, restaurants, shopping, and tourism activities, thereby supporting the broader travel and tourism ecosystem.

He noted that lower ticket prices do not necessarily mean a decline in overall tourism spending, as lower travel costs could lead to more trips or longer stays, resulting in higher travel-related spending despite the lower cost of the ticket itself.

According to Al-Attas, price has become one of the most influential factors in travelers' decisions, particularly as families have become more sensitive to costs. He explained that competition among airlines affects not only the choice of carrier, but can also prompt travelers to change their travel dates or choose an alternative destination with a lower cost of reaching it.

He added that the coming period could see greater flexibility among travelers regarding the timing of their trips, allowing them to take advantage of offers outside peak periods, which would help distribute demand throughout the year and reduce the seasonality of travel.

He pointed out that lower ticket prices are a positive factor in families' ability to manage their travel budgets and may allow them to maintain travel plans while reducing overall costs or redirecting some of the savings to other expenses. He said price competition, when accompanied by improved service quality and a wider range of options, benefits consumers and supports the growth of Saudi Arabia's travel market.

For his part, tourism media specialist Mohammed Al Abdul Karim told Asharq Al-Awsat that the high volume of airfare offers currently seen in the Saudi market is a natural and expected development in the seasonal cycle of travel demand, coinciding with the end of the peak summer holiday period and the return of schools. This changes the pattern of demand for flights, particularly family and leisure travel, he said, confirming that local airlines are competing in this area.

Al Abdul Karim said July and August are typically among the periods of highest demand for international travel among Saudis, which raises flight load factors and reduces the need for promotional pricing. As the season ends and families return to their usual routines, airlines begin repricing part of their available seat capacity and introducing offers aimed at stimulating demand and maintaining good flight load factors.

According to Al Abdul Karim, "What we are seeing does not necessarily mean a general decline in ticket prices, as airlines use dynamic pricing that changes according to demand levels, booking rates, flight dates, available capacity, and the level of competition on each route."

Al Abdul Karim expected the offers to continue in the coming weeks, particularly on international tourist destinations that saw high demand during the summer, with significant opportunities to secure competitive fares on midweek flights and routes served by multiple flights and carriers.

He added that the biggest beneficiary during this period is the traveler with flexibility in travel dates, as more pricing options become available after the peak season subsides, particularly during the period between the end of the summer holiday and the start of the next travel seasons. He said competition among local airlines had contributed to stimulating seasonal offers, with discounts of up to 50 percent on some flights and destinations, as carriers seek to stimulate demand and raise seat load factors after a summer season that saw high demand.

The offers launched by Saudi carriers vary in terms of discount levels and booking and travel periods. Riyadh Air announced discounts of up to 35 percent on base fares for premium economy, 20 percent for economy, and 15 percent for business class on selected destinations. The offer can be booked from August 18 to 31, with travel from September 1, 2026, through February 28, 2027.

For its part, flynas introduced fares starting at 239 riyals ($63.70) one way on a selection of international flights, with bookings available until August 31 and travel through October 31.

Saudia also offered discounts of up to 50 percent on international destinations, along with an additional tier credit for AlFursan members. Bookings remain open until September 3, for travel between September 1 and December 10, 2026. The offer applies to both Guest and Business classes.

The current offers reflect the range of competitive tools being used by Saudi carriers to attract international travelers, as airlines seek to stimulate demand outside the peak summer travel season and encourage bookings for the coming periods.


Egyptian Central Bank Issues Regulations for Digital Financial Identity Services

The headquarters of the Central Bank of Egypt in downtown Cairo (Photography: Abdul Fattah Faraj)
The headquarters of the Central Bank of Egypt in downtown Cairo (Photography: Abdul Fattah Faraj)
TT

Egyptian Central Bank Issues Regulations for Digital Financial Identity Services

The headquarters of the Central Bank of Egypt in downtown Cairo (Photography: Abdul Fattah Faraj)
The headquarters of the Central Bank of Egypt in downtown Cairo (Photography: Abdul Fattah Faraj)

Egypt's central bank has approved regulations for a digital financial identity platform that will enable remote customer verification and identification, it said on Sunday, as it seeks to expand access to ⁠financial services.

According to Reuters, it said ⁠the move was part of efforts to support digital transformation, promote financial inclusion ⁠and modernize the banking sector's digital infrastructure.

Governor Hassan Abdalla said the platform will enable more citizens to open bank accounts and access banking products and services online without visiting branches.

The ⁠regulations set out a governance framework, defining the roles and responsibilities of relevant parties, along with technical, data protection, and cybersecurity requirements, the central bank said.


Sinopec's Half-year Profit Grew 19.3% on Year Despite Iran War

Oil storage tanks and facilities of a Sinopec plant in Shanghai, China, March 26, 2026. REUTERS/Go Nakamura
Oil storage tanks and facilities of a Sinopec plant in Shanghai, China, March 26, 2026. REUTERS/Go Nakamura
TT

Sinopec's Half-year Profit Grew 19.3% on Year Despite Iran War

Oil storage tanks and facilities of a Sinopec plant in Shanghai, China, March 26, 2026. REUTERS/Go Nakamura
Oil storage tanks and facilities of a Sinopec plant in Shanghai, China, March 26, 2026. REUTERS/Go Nakamura

China's Sinopec reported an unexpected 19.3% year-on-year increase in net profit for the first half of 2026, despite a litany of issues including the Middle East conflict and falling demand for fuel domestically, but said it had to write down its inventories by 16 billion yuan.

Net profit over the January-June period stood at 25.63 billion yuan ($3.81 billion) under Chinese accounting standards, versus the 21.48 billion yuan a year earlier, Sinopec said in a filing at the Shanghai stock exchange on Sunday.

In a separate filing, the company said it set aside provisions for asset impairment of 16 billion yuan as a result of the volatility in oil and fuel prices in the first six months of this year.

Sinopec, ⁠the world's biggest ⁠refiner, relies on the Middle East for half of its crude oil needs, making it vulnerable to the worst supply crisis in history as the Strait of Hormuz - through which it usually imports large quantities of oil - has remained largely closed since March.

It also processed 5.6% less crude oil between January and June versus the same year-ago period, at 113.31 million metric tons, or 4.57 million barrels per day (bpd), according to the filing.

The company said its refining margin was up 44.1% on ⁠the year in the first half of 2026 - up 139 yuan per metric ton to 453 yuan per metric ton - a surprising jump given domestic fuel price hikes lagged the surges in crude oil cost.

Its refining segment reported a 381.5% growth in operating profit by "broadening crude oil sourcing outside the Middle East, closely managing the timing of purchases in line with market conditions, and optimizing its product mix based on product profitability," the filing showed, according to Reuters.

China has drastically cut oil imports since the war began in March, freeing up barrels for others and keeping a lid on global prices. Sinopec's result is all the more surprising given how exposed it was to the Strait and the way in which Beijing has forced the refiner, and others like it, to ⁠absorb the oil price shock ⁠by limiting their ability to pass higher oil prices through to fuel consumers

Conflict in the Middle East caused "sharp volatility in international crude oil prices and a substantial increase in imported crude procurement costs", while the domestic refined product and chemicals markets remained weak, the management stated in the filing.

But the company said it "closely monitored changing conditions, dynamically adjusted production and operating arrangements, and effectively responded to unexpected shocks and challenges on multiple fronts."

The chemicals segment remained loss-making, recording an operating loss of over 200 million yuan, but losses narrowed sharply by around 4 billion yuan, it said.

Output of ethylene, a key building block for petrochemicals, sank 15.5% on the year to 6.4 million tons in the first half, as the company faced industry over-capacity and competition from the private sector.

Sinopec projects crude throughput for July–December at 113 million metric tons, roughly flat versus the amount processed in the first half.