Saudi PIF Raises $3.2 Billion In Saudi Telecom Secondary Share Offering

 The PIF raised $3.2 billion from the sale of the six percent stake in Saudi Telecom. (Asharq Al-Awsat)
The PIF raised $3.2 billion from the sale of the six percent stake in Saudi Telecom. (Asharq Al-Awsat)
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Saudi PIF Raises $3.2 Billion In Saudi Telecom Secondary Share Offering

 The PIF raised $3.2 billion from the sale of the six percent stake in Saudi Telecom. (Asharq Al-Awsat)
The PIF raised $3.2 billion from the sale of the six percent stake in Saudi Telecom. (Asharq Al-Awsat)

The Saudi Public Investment Fund (PIF) and the Saudi Telecom Company (STC) - the largest telecommunications company in the Middle East - announced the successful completion of the secondary public offering of 120 million shares, representing 6 percent of the company’s capital.

A joint statement said that the Kingdom’s sovereign wealth fund sold 120 million shares to local, international institutional and retail investors at 100 riyals per share.

The PIF raised $3.2 billion from the sale of the 6 percent stake in Saudi Telecom.

The $430 billion sovereign wealth fund retains a 64 percent stake in STC’s issued shares after the offering.

“The strong interest that this offering has generated from domestic and international investors is testament to STC’s enduring strengths and exciting prospects for the future,” said Yazeed Al-Humied, PIF deputy governor and head of Mena investments.

“This transaction is in line with PIF’s strategy 2021-2025... to recycle capital by selling stakes in the companies owned by PIF, as with the secondary public offering of PIF’s shares in STC and the [initial public offerings] of Acwa Power and Saudi Tadawul Group, to reinvest the proceeds in emerging and promising sectors in the local economy.”

For his part, STC group chief executive Olayan Alwetaid said: “We are extremely pleased to see the strong interest in the offering from domestic and international investors."

"The increase in the company’s free float percentage will further enhance the company’s international investment case, help make its shares accessible to a wider range of investors and improve trading liquidity,” he added.



Saudi Housing Finance Rose 15% in the First Half of 2025 Thanks to Government Incentives

Citizens view a model of one of the residential master plans at the Cityscape Global exhibition in Riyadh (SPA)
Citizens view a model of one of the residential master plans at the Cityscape Global exhibition in Riyadh (SPA)
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Saudi Housing Finance Rose 15% in the First Half of 2025 Thanks to Government Incentives

Citizens view a model of one of the residential master plans at the Cityscape Global exhibition in Riyadh (SPA)
Citizens view a model of one of the residential master plans at the Cityscape Global exhibition in Riyadh (SPA)

Housing finance for individuals in Saudi Arabia surged by 15% in the first half of 2025, reaching $12.8 billion (SAR48 billion), compared to $11.1 billion (SAR41.74 billion) in the same period last year, according to data from the Saudi Central Bank (SAMA).

Experts attribute the increase to a mix of government incentives, competitive financing offers, stable interest rates, and rising rents in major cities, which have boosted demand for home ownership.

Real estate consultant Matar Al-Shammari told Asharq Al-Awsat that the growth is largely driven by initiatives from the Ministry of Housing, the Real Estate Development Fund, and the “Sakani” program, along with stable mortgage rates and diverse housing products.

He noted that off-plan construction projects have seen particular interest, supported by competitive bank offers, fee exemptions, and a concentration of demand in cities like Riyadh, the Eastern Province, and the Western Region, which benefit from strong job markets, educational opportunities, and rapid economic growth. The entry of international developers into the Saudi market is also reinforcing its investment appeal.

For his part, property valuer and expert Eng. Ahmed Al-Faqih cited two main factors behind the surge. First, historically low mortgage rates, coupled with both new and pent-up demand, have logically boosted borrowing. Second, soaring rents in major urban centers have made buying more financially attractive than remaining a tenant.

Al-Faqih highlighted that government housing programs - particularly those by the National Housing Company - have focused on off-plan sales, offering preferential rates that make them more appealing than ready-built properties, thereby increasing the uptake of supported housing projects.

Real estate consultant Al-Oboudi bin Abdullah added that the rise in housing finance reflects sustained demand for residential projects in major cities, fueled by government incentives and attractive bank mortgage offers. He pointed to SAMA’s figures showing that over 97% of housing finance for individuals came from banks, with villas being the most financed property type (SAR29.6 billion), followed by apartments (SAR14.5 billion) and land plots (SAR2.65 billion).

These figures, he said, underline the continued strength and capacity of the Saudi housing market to absorb new projects, supported by strong buyer confidence. Looking ahead, he believes ongoing housing support programs, stable interest rates, and the imminent implementation of updated regulations allowing non-Saudis to own property will further stimulate the real estate sector in the second half of 2025.