Saudi PIF Operating Profit Doubles, Assets Hit $1.21 Trillion

The Public Investment Fund Tower at King Abdullah Financial District. (PIF)
The Public Investment Fund Tower at King Abdullah Financial District. (PIF)
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Saudi PIF Operating Profit Doubles, Assets Hit $1.21 Trillion

The Public Investment Fund Tower at King Abdullah Financial District. (PIF)
The Public Investment Fund Tower at King Abdullah Financial District. (PIF)

Saudi Arabia’s Public Investment Fund has put its 2025 financial performance under the spotlight of global markets, publishing its audited consolidated financial statements on the London Stock Exchange in a move that reinforces its role as a driver of economic transformation and a global investor across continents.

The figures revealed an exceptional year for the fund. Net profit surged 152% to $17.36 billion, or 65.1 billion riyals, while total assets rose 5% to nearly $1.21 trillion, or 4.54 trillion riyals.

The jump was not simply the result of market swings. It reflected a flexible expansion strategy that balanced investment in future sectors, such as artificial intelligence through the launch of HUMAIN, with major domestic development projects, including Riyadh Expo 2030.

It also came alongside innovative green financing tools that strengthened foreign investor confidence in the fund’s financial position and long-term sustainability.

Operational efficiency drives record profit

The consolidated financial statements showed a sharp year-on-year improvement in profitability, mainly driven by stronger earnings from associates and a 9% drop in the fund’s administrative expenses. The decline pointed to higher operating efficiency and tight spending discipline.

Operating profit climbed to $20.8 billion, or 77.9 billion riyals, from $9.2 billion, or 34.6 billion riyals, in 2024, marking growth of more than 120%.

The gains were supported by a 9% increase in total revenue to $119.73 billion, or 449 billion riyals, from 413 billion riyals a year earlier, reflecting continued portfolio growth and stronger returns.

That performance fed directly into net profit for 2025, which jumped 152% to $17.36 billion, or 65.1 billion riyals, from 25.8 billion riyals in 2024. The result was more than double the previous year’s level.

The fund also maintained a high level of cash and cash equivalents, exceeding $93.33 billion, or more than 350 billion riyals, underscoring its ability to keep executing its investment strategy.

Asset growth and 2030 ambitions

The strong results come as the fund continues to expand its asset and investment base at speed. Assets have risen from about 720 billion riyals in 2017 to 4.54 trillion riyals, or $1.21 trillion, by the end of last year. The fund is targeting 10 trillion riyals by 2030, according to the Saudi Vision 2030 annual report.

The growth aligns with the fund’s new 2026-2030 strategy, announced at the start of this year. The strategy aims to shift from building strategic sectors to integrating economic ecosystems and accelerating growth. It places the private sector as a partner in creating value, not merely an implementer of projects, in line with the third phase of Vision 2030 and the push for deeper long-term investment partnerships.

PIF Governor Yasir Al-Rumayyan said the new strategy marked “a natural progression” from a phase of growth and expansion to a new phase focused on sustainable value, greater impact and higher investment efficiency.

He said the fund would transform the 13 strategic sectors in earlier plans into six integrated economic ecosystems built around companies with clear objectives. The focus would be on strengthening financial returns, maintaining investment efficiency, and continuously assessing the performance of investments and projects.

Under this vision, the fund’s investments are spread across three main portfolios: the Vision Portfolio, the Strategic Investments Portfolio and the Financial Investments Portfolio.

Backing future sectors

In future sectors, the fund moved in 2025 to accelerate artificial intelligence and advanced technologies through the launch of HUMAIN. The company invests across the AI value chain, including infrastructure, data centers, cloud capabilities, advanced models and applications.

To deepen that push, the fund signed a non-binding term sheet with Saudi Aramco under which Aramco would acquire a significant minority stake in HUMAIN, while PIF would retain the majority stake. The aim is to combine key assets and expand the company’s technical capabilities.

In future mobility and sustainability, Lucid Group, majority-owned by the fund, reported a 55% year-on-year rise in vehicle deliveries to 15,841 vehicles in 2025. The increase coincided with the launch of the Driving Force program in partnership with Formula E to expand science, technology, engineering and mathematics education, with a target of reaching more than 50,000 students in Saudi Arabia, the United States and the United Kingdom by the end of 2025.

Tourism and entertainment gain pace

On the domestic development front, the fund accelerated support for major local development and tourism projects while strengthening the wider economic ecosystem.

It launched Riyadh Expo 2030 Company to develop and operate the facilities of the first World Expo to be hosted by Saudi Arabia and to invest in those facilities over the long term. The project is expected to support sustainable tourism, create new opportunities for the private sector and boost its contribution to gross domestic product during construction, operation and beyond.

The year also brought major milestones in entertainment and luxury tourism. Qiddiya City announced the opening of the first Six Flags theme park outside North America, creating a distinctive destination in the kingdom. Red Sea Global also announced the official opening of AMAALA, its luxury coastal destination.

Alongside these major construction and development projects, the financial statements showed that the fund’s investment properties rose to $21.46 billion from $17.46 billion in 2024.

Green financing enters a new phase

The fund’s investment securities, valued at $576.4 billion, show a disciplined approach to diversifying risk by geography and currency to secure sustainable returns.

The Middle East and North Africa remained the largest exposure at $344.2 billion, followed by North American markets at $145.9 billion, European markets at $44.7 billion and Asian markets at $41.6 billion.

To support capital markets, the fund signed memorandums of understanding with global financial institutions, including Goldman Sachs Asset Management and Franklin Templeton, to develop innovative investment strategies focused on the region.

In financing, the fund marked a new milestone with its first euro-denominated green bond issue, worth 1.65 billion euros. Demand was strong, with orders exceeding the amount offered by more than six times. The fund also launched its first commercial paper program as a short-term financing channel.

Private sector and local content

As part of its commitment to the domestic economy, the fund held the third edition of the PIF Private Sector Forum, bringing together portfolio companies and government entities to review opportunities in major projects.

The fund’s initiatives also continued to support localization, develop local suppliers and increase the private sector’s share in emerging projects. The aim is to ensure that the fund’s historic financial growth feeds directly into the structure of Saudi Arabia’s broader, more sustainable economy in the years ahead.

 



Saudi Arabia Offers 100% Social Insurance Debt Waiver to Businesses That Have Exited Market

Officials from the General Organization for Social Insurance at an earlier meeting with businessmen and businesswomen at the Riyadh Chamber (SPA)
Officials from the General Organization for Social Insurance at an earlier meeting with businessmen and businesswomen at the Riyadh Chamber (SPA)
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Saudi Arabia Offers 100% Social Insurance Debt Waiver to Businesses That Have Exited Market

Officials from the General Organization for Social Insurance at an earlier meeting with businessmen and businesswomen at the Riyadh Chamber (SPA)
Officials from the General Organization for Social Insurance at an earlier meeting with businessmen and businesswomen at the Riyadh Chamber (SPA)

Saudi Arabia's General Organization for Social Insurance (GOSI) has made businesses that have ceased operations and exited the Saudi market eligible for a 100% waiver of outstanding social insurance debts, subject to approved conditions, Asharq Al-Awsat has learned.

The move aims to address accumulated financial obligations, help businesses settle their accounts and close outstanding cases, and support stability in the Kingdom's private sector while resolving financial difficulties faced by companies that have left the market.

The measure is part of a broader package of improvements GOSI is implementing to enhance services for employers and businesses, in response to feedback and suggestions gathered during direct meetings with officials and business owners, in cooperation with chambers of commerce.

Taking Economic Conditions into Account

The initiative has economic and regulatory implications beyond debt relief, seeking to address financial and administrative liabilities left behind by businesses that have exited the market and facilitate the formal closure of their records in accordance with regulations.

Its main significance lies in striking a balance between protecting the rights of the social insurance system and its contributors, on the one hand, and taking into account the economic circumstances of businesses that have ceased operations, on the other.

It also reinforces regulatory flexibility in the business environment, ensuring that accumulated obligations do not become a permanent obstacle to the settlement of financial and administrative affairs.

Enhancing Market Attractiveness

The initiative reflects a more flexible approach to dealing with business distress, focusing on resolving outstanding liabilities rather than allowing them to remain a continuing burden on business owners.

This approach is expected to strengthen confidence in regulatory procedures and enhance the attractiveness of Saudi Arabia's business environment.

The move is particularly significant given the changing nature of the business sector, with new companies entering the market each year while others cease operations because of competition, rising costs, or shifting market conditions.

Settling the social insurance accounts of businesses that have exited the market could ease the administrative and financial burden on their owners, help them reorganize their financial affairs and potentially pave the way for a return to commercial activity in the future, without old liabilities remaining an obstacle, subject to applicable regulations.

According to information obtained by Asharq Al-Awsat, GOSI has notified all companies and establishments of improvements introduced to its business services, including the debt waiver.

The measure is designed to enable businesses that have ceased operations to resolve their outstanding social insurance obligations and complete the regulatory procedures associated with closing their operations, easing the financial burden on owners whose businesses are no longer active.

Service Improvements

In a related development, GOSI's improvements include upgrades to services for registering businesses, terminating their activities and managing ownership records, alongside efforts to resolve recurring technical problems and improve the quality of digital services.

The changes are intended to improve the user experience and accelerate transaction processing.

GOSI has also expanded electronic payment options through its GOSI Business app, allowing employers to pay amounts exceeding 30,000 Saudi riyals ($8,000) in multiple installments.

The measure aims to make it easier for businesses to meet their financial obligations while providing greater payment flexibility.

The updates also include measures to increase transparency in transaction processing by clarifying the reasons for rejecting occupational injury claims and contributor-related transactions.

Notifications have also been introduced through the GOSI Business and Tawakkalna apps to inform users when applications are received, accepted, returned, or rejected.

Together, the improvements reflect GOSI's efforts to modernize its digital services, simplify procedures for employers and improve the management of social insurance obligations.

The measures are also intended to support the business environment and help resolve outstanding financial and administrative matters involving businesses.


From Aramco's Profits to State Budget Revenue: How Do Oil Proceeds Reach Government Coffers?

A general view shows Ras Tanura's oil production plant near Dammam in Saudi Arabia's Eastern Province (AFP)
A general view shows Ras Tanura's oil production plant near Dammam in Saudi Arabia's Eastern Province (AFP)
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From Aramco's Profits to State Budget Revenue: How Do Oil Proceeds Reach Government Coffers?

A general view shows Ras Tanura's oil production plant near Dammam in Saudi Arabia's Eastern Province (AFP)
A general view shows Ras Tanura's oil production plant near Dammam in Saudi Arabia's Eastern Province (AFP)

Saudi Aramco's financial results and Saudi Arabia's third-quarter budget performance report, released on the same day, revealed a divergence between the company's rising profits and declining government oil revenue recorded in the state budget.

While Aramco's net income rose 34.2% during the first nine months of 2026 to SAR 380.6 billion ($101.5 billion), government oil revenue fell 1.3% over the same period and declined approximately 23% in the third quarter alone.

Comparing the two indicators does not necessarily imply a direct relationship between the company's profits and the revenue flowing into government coffers. Corporate earnings are recognized under different accounting principles from those governing the calculation and collection of government revenue.

The financial relationship between Aramco and the government also involves multiple channels, including taxes, royalties, dividends and offsetting settlements, each with its own payment and collection schedule.

Aramco's Profits and Cash Flows

Aramco reported net income of SAR 380.6 billion ($101.5 billion) for the first nine months of 2026, compared with SAR 283.6 billion ($75.6 billion) in the corresponding period last year, an increase of 34.2%.

Adjusted net income reached SAR 368.9 billion ($98.4 billion), up from SAR 302.3 billion ($80.6 billion) a year earlier.

However, the increase in earnings was not accompanied by a comparable rise in cash generated by the company's operations, according to its financial report.

Cash flow from operating activities totaled SAR 355.8 billion ($94.9 billion), compared with SAR 357.6 billion ($95.4 billion) in the same period last year, remaining largely unchanged.

Aramco attributed this to changes in working capital, which refers to funds tied up in day-to-day operations, including outstanding sales receivables, inventories and amounts owed to or by the company.

These movements limited the extent to which higher earnings translated into operating cash flow.

Meanwhile, free cash flow increased to SAR 221.6 billion ($59.1 billion), compared with SAR 217.3 billion ($57.9 billion) a year earlier.

This metric measures the cash remaining after capital expenditures are deducted from operating cash flow. It benefited from a reduction in capital expenditures to SAR 134.2 billion ($35.8 billion), from SAR 140.3 billion ($37.4 billion) in the comparable period.

Oil Revenue in the State Budget

On the other side of the equation, Aramco's earnings growth was not mirrored by a corresponding increase in government oil revenue.

Ministry of Finance data showed that oil revenue fell 23% year on year in the third quarter to SAR 116.5 billion ($31.1 billion), compared with SAR 150.8 billion ($40.2 billion) in the same period last year.

Over the first nine months of 2026, oil revenue totaled SAR 446.3 billion ($119 billion), down from SAR 452.4 billion ($120.6 billion) in the corresponding period of 2025, representing a relatively modest decline of approximately 1.3%.

By contrast, non-oil revenue increased 8% during the nine-month period to SAR 412.5 billion ($110 billion), helping lift total budget revenue by 3% to SAR 858.9 billion ($229 billion).

In the third quarter alone, non-oil revenue rose 20% to SAR 142.6 billion ($38 billion).

The growth in non-oil revenue therefore helped cushion the impact of declining oil revenue on the government's overall income.

Third-quarter expenditure totaled SAR 343.4 billion ($91.6 billion), against revenue of SAR 259.1 billion ($69.1 billion), resulting in a quarterly budget deficit of approximately SAR 84.3 billion ($22.5 billion).

Why Don't the Figures Move in the Same Direction?

Part of the divergence between Aramco's financial results and government budget revenue stems from the different nature of the figures themselves.

The company's profits are recognized according to its accounting results, while budget figures reflect government revenue actually collected during the reporting period.

Moreover, the government's financial returns from Aramco's operations flow through several channels, including taxes, royalties and dividends, with differences in when these amounts become due and when they are paid.

Accounting profits do not necessarily translate into cash inflows during the same period. Liquidity is affected by the timing of receivables collection, inventory movements and operating payments.

This distinction is also evident in financial transactions between Aramco and the government, which are not limited to direct cash payments but include the settlement of certain mutual obligations through offsets.

For example, Aramco's cash income tax payments fell to SAR 2.8 billion (approximately $747 million) in the third quarter, compared with around SAR 51 billion ($13.6 billion) in the second quarter, as amounts due to the company from the government were settled by offsetting them against its tax obligations.

Under this mechanism, amounts owed to one party are deducted from what that party owes the other, rather than transferring the full amount in cash.

Such offsets affect both the volume of cash payments and the timing of financial transfers between Aramco and the government.

Consequently, government oil revenue does not necessarily move in the same direction as Aramco's financial results, since each is influenced by different factors and accounting mechanisms.

While the company's profits reflect its financial performance during a given period, government revenue recorded in the budget depends on the taxes, royalties and dividends due to the state, as well as the timing of their collection and settlement.

Aramco's profits may therefore increase during a period when government oil revenue is declining.

Overall, the results demonstrate Aramco's continued ability to generate strong profits and maintain substantial cash flows, supporting its capacity to sustain investment and distribute dividends to shareholders, foremost among them the Saudi government.

At the same time, growth in non-oil revenue underscores the importance of diversifying budget income sources to mitigate fluctuations in oil revenue, broaden the sources supporting public finances and advance the Kingdom's economic transformation.


Crypto Dips on Democrat Midterm Wins, Binance Hack Dents Optimism

Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)
Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)
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Crypto Dips on Democrat Midterm Wins, Binance Hack Dents Optimism

Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)
Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)

Cryptocurrencies briefly dipped on Wednesday as Democrats won majorities in both the Senate and House in the US midterm elections, a potential blow to an industry that has pushed for faster deregulation for digital assets.

The sector has spent more than $300 million backing crypto-friendly Democrats and Republicans in roughly equal measure during the current and previous election cycles, hoping to pass legislation US crypto companies say will ‌put them on ‌a solid legal footing and allow them to thrive.

Bitcoin ‌briefly ⁠touched a six-week ⁠low before recovering to trade roughly flat by 0715 GMT at $78,070. Ether traded at $2,292, up just 1%.

Bitcoin has fallen by around 41% since hitting record highs above $122,000 in October 2025, bringing the value of the broader crypto market to around $2.61 trillion, according to CoinMarketCap.

The market has lost some $300 billion in value in the last month alone, as deepening concern about future returns from AI and the ⁠strain of rising borrowing costs pushed investors into less risky ‌assets such as government bonds and ‌safe-haven currencies.

Sentiment has also been hurt by the $6 billion hack of the Binance platform last ‌week, the largest heist in history.

On Tuesday, Binance customers had withdrawn ‌a net $4.72 billion from the world's largest cryptocurrency exchange since it reopened following the hack at the weekend.

"The market may be re-evaluating the risk-reward profile of crypto assets. On one hand, the string of security incidents is forcing investors to re-examine the ‌industry's security infrastructure and custody risks," Tim Sun, senior researcher at HashKey, said.

"On the other hand, potential shifts in ⁠the US political landscape ⁠could stall the progress of structural crypto legislation and institutional framework development. All of these factors leave the crypto market facing strong headwinds," he said.

US President Donald Trump, who vowed to make the United States the "crypto capital of the world" during his 2024 presidential campaign, has made his own forays into digital assets, with the launch of his "Trump" meme coin, plus his family's World Liberty Financial crypto platform, among other ventures.

The sector has seen sweeping reforms in the almost two years since Trump returned to office, including lighter enforcement and the creation of a strategic bitcoin reserve.

Washington has also allowed for easier access to banking and exchange-traded products and passed a federal stablecoin law that could help these assets move into the mainstream payments and money transfer systems.