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Fitch Upgrades Saudi’s PIF Outlook to ‘Positive’

The Public Investment Fund is one of the drivers of the Saudi national economy (Asharq Al-Awsat)
The Public Investment Fund is one of the drivers of the Saudi national economy (Asharq Al-Awsat)
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Fitch Upgrades Saudi’s PIF Outlook to ‘Positive’

The Public Investment Fund is one of the drivers of the Saudi national economy (Asharq Al-Awsat)
The Public Investment Fund is one of the drivers of the Saudi national economy (Asharq Al-Awsat)

Ratings agency Fitch on Friday revised the outlook on Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), to "positive" from "stable" following a similar action on the country.

It also affirmed the PIF's rating at "A".

Fitch had cited improvements in Saudi Arabia's balance sheet due to higher oil revenues as reasons for its outlook revision on the country earlier this month.

Moreover, 4 percent of Saudi Aramco’s shares were transferred to the Kingdom’s sovereign wealth fund last February.

Saudi Crown Prince Mohammed bin Salman said the transferred shares will help strengthen the sovereign wealth fund’s solid financial position and strong credit rating in the medium term.

PIF is a sovereign wealth fund and the leading strategic investment arm of Saudi Arabia, promoting the diversification and development of Saudi Arabia's non -oil sector under the government's "Vision 2030" strategic agenda.

PIF's strategic objectives are closely aligned with national economic objectives. The fund's total assets at end-2020 were 47.1 percent of national GDP.

Fitch classifies PIF as a government-related entity under its Government-Related Entities Rating Criteria (GRE).

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Chip Powerhouse Taiwan Calls for Economic Partnership Deal with EU

Taiwan President Lai Ching-te speaks at the annual Taiwan-EU investment forum in Taipei, Taiwan November 18, 2024. (Reuters)
Taiwan President Lai Ching-te speaks at the annual Taiwan-EU investment forum in Taipei, Taiwan November 18, 2024. (Reuters)
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Chip Powerhouse Taiwan Calls for Economic Partnership Deal with EU

Taiwan President Lai Ching-te speaks at the annual Taiwan-EU investment forum in Taipei, Taiwan November 18, 2024. (Reuters)
Taiwan President Lai Ching-te speaks at the annual Taiwan-EU investment forum in Taipei, Taiwan November 18, 2024. (Reuters)

Taiwan President Lai Ching-te called on Monday for the signing of an economic partnership agreement with the European Union, saying it would boost cooperation in semiconductors and that as democracies the two sides should be working together.

Taiwan has pushed for the signing of investment and trade deals with the EU, in what would be politically significant for Taiwan given its diplomatic isolation and general exclusion from most global bodies and agreements.

For its part, the EU has been courting Taiwan as a "like-minded" partner under the European Chips Act to encourage more semiconductor production in Europe and lessen dependence on Asia, despite the lack of formal ties with the Chinese-claimed island.

Speaking at a Taiwan-EU investment forum in Taipei, Lai said that facing the threat of expanding authoritarianism, Taiwan and the EU must form a "strong democratic umbrella" and build secure supply chains for global democracies.

"Looking to the future, Taiwan hopes to take an innovative approach towards the signing of an economic partnership agreement with the EU," he said.

Such an agreement would set a sound institutional basis for further cooperation in fields such as semiconductors and AI, Lai added.

"This would not only make both our economies more resilient and secure, but also ensure the stable operation of global supply chains."

Taiwanese investment in EU has been anchored by Taiwan Semiconductor Manufacturing Co (TSMC), which in August launched a major new chip plant in Dresden, Germany, expected to be a key supplier to European industry and automakers.

Maria Martin-Prat, deputy head of the European Commission's directorate general for trade, made no mention of signing such a deal with Taiwan in a video message to the investment event, though she did praise bilateral relations.

"Taiwan, a vibrant democracy with an open economy, is a trusted partner for us to promote our economic security," she said.

Taiwan has few free trade agreements, though last year it signed an Enhanced Trade Partnership with Britain and has applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP.