Saudi PIF to Inject $266 Bn into New Projects

PIF Governor Yasser al-Rumayyan and Industry and Mineral Resources Minister Bandar al-Khorayef after signing an agreement at the forum (Asharq Al-Awsat)
PIF Governor Yasser al-Rumayyan and Industry and Mineral Resources Minister Bandar al-Khorayef after signing an agreement at the forum (Asharq Al-Awsat)
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Saudi PIF to Inject $266 Bn into New Projects

PIF Governor Yasser al-Rumayyan and Industry and Mineral Resources Minister Bandar al-Khorayef after signing an agreement at the forum (Asharq Al-Awsat)
PIF Governor Yasser al-Rumayyan and Industry and Mineral Resources Minister Bandar al-Khorayef after signing an agreement at the forum (Asharq Al-Awsat)

The Saudi Public Investment Fund invested nearly $1.3 billion in four national companies in the contracting sector during the last period, announced Governor Yasser al-Rumayyan.

Rumayyan announced the establishment of a general department for national development to determine the strategic directions in economic development and measuring impact.

The group launched a set of programs, including the local content growth program "Musahama," which aims to increase the share of local content spending in PIF's domestic portfolio to 60 percent by the end of 2025.

Rumayyan said in his opening speech at the PIF Private Sector Forum that Crown Prince Mohammad bin Salman bin Abdulaziz is enlisting the private sector and enhancing its role in advancing the country's economy and realizing Vision 2030.

The vision promotes innovation and economic diversification and seeks to increase the private sector's contribution to GDP from 40 percent to 65 percent by 2030.

- Government tenders

In a dialogue session titled "Partnership with the private sector is a strategic pillar in shaping the Kingdom's local economy," Industry and Mineral Resources Minister Bandar al-Khorayef stated that the number of government tenders of the mandatory list applies to 50,000, benefiting over 4,000 national factories.

Khorayef, also the Chairman of the Board of Directors of the Local Content and Government Procurement Authority, noted that the value of the tenders exceeded $106.6 billion since the regulations on preference for local content and local SMEs and companies listed on the Capital Market in business and procurement.

Khorayef stated that the industry in the Kingdom has become very attractive, and local investors are moving towards the sector, indicating that local content is an essential part of the Fund's agenda and enjoys unlimited interest and empowerment.

The Minister pointed out that the private sector has a fundamental role in developing the local content and is a significant and essential partner for the authority.

- Motivating mega companies

For his part, the CEO of the Private Sector Partnership Reinforcement Program (Shareek), Abdulaziz al-Arifi, stated that the program's launch came to make a tangible impact on the investments of national companies and institutions in the local market.

Arifi added that the Kingdom has many regional and global pioneering companies with the ability and desire to grow to serve its goals and the Kingdom's aspirations.

He indicated that Shareek's role lies in providing support and incentives to large companies and enabling them to reach the maximum possible extent of growth within the Kingdom and reach the target of $ 1.3 trillion.

The program works closely with the establishments to study expansion plans and projects and ways to enable them to address challenges that may delay the implementation of these projects and coordinate with various government agencies.

Arifi noted that supporting significant companies to expand, grow, and increase their investments inside the Kingdom will open a larger market for all investors locally, indicating that raising the efficiency and quality of investment will open the way for many opportunities within the value and supply chains.

He discussed forming sectoral supervisory committees to develop investment opportunities and present them to large investing companies.

According to Arifi, there is an excellent integration between the authorities in achieving the vision and keenness to place the private sector as a cornerstone in achieving these goals.

He reiterated the importance of PIF's development of opportunities for national companies, noting that it contributes to their growth and would generate revenues for the Kingdom.

- New sectors

For his part, Deputy Governor and Head of MENA Investments at the PIF, Yazeed al-Humied, stated that one of the main principles of PIF programs is the participation of companies in new sectors, indicating that the Kingdom's economy and its rapid growth is a vast area for promising opportunities.

Humied indicated that after implementing the strategy of the 13 sectors, the private sector found many investment and participation opportunities as a supplier and provider of services to achieve supply chains.

- Local content

During the forum, the Fund launched several initiatives to support and empower the private sector and stimulate local content growth through the Musahama program.

The program aims to increase the share of local content spending in PIF's domestic portfolio to 60 percent by the end of 2025. As part of this program, each PIF company will embed local content considerations in their design decisions and procurement policies.

It also launched another initiative, the "Suppliers Development Program," which will support the development and upskilling of local suppliers and vendors to meet the growing requirements of PIF's portfolio companies.

During 2023, PIF will hold vendor boot camps for the contracting sector to help Tier 2, and Tier 3 contractors prepare their companies to qualify as vendors.

The Private Sector Hub is a dedicated channel to share supplier and investment opportunities with the private sector.

The hub contains more than 100 opportunities and will be continuously enhanced and updated.

Head of the National Development Division at PIF, Jerry Todd, said that the launch of Musahama was a significant step forward in the efforts to drive the growth of local content in the Kingdom.

Both programs would ensure that PIF and its portfolio companies embed local content considerations in the activities and operations, contributing directly towards developing local industries and building long-term supplier and vendor partnerships.

It would strengthen local capabilities, enhance regional players' competitiveness, improve supply chain resilience, and stimulate innovation in the Saudi economy.

- Longterm partnerships

The Fund stressed the success of the long-term partnership with the private sector, urging more companies to participate in reaching the goals of Vision 2030.

Head of MENA Securities Investments at PIF Abdulmajeed al-Hagbani stated that building successful partnerships with the private sector is based on key frameworks.

At the "Building Successful Partnerships between the Public Investment Fund and the Private Sector" panel, Hagbani stated that the partnerships also focus on the additional value that the Fund gives, including governance and follow-up of the private sector through the development of a system of governance and specialized committees.

The second framework is adopting an effective operating model through establishing a shared services center to benefit from institutional communication, finance, legal, and tax affairs expertise and increase human resource efficiency.

It aims to stimulate innovation and business development and provide an infrastructure for all PIF and private companies.

The third framework included establishing a network for the Fund with local and regional partners, international investors, and government agencies to provide new and broad horizons.

For his part, the CEO of Zamil Group, Adib al-Zamil, discussed the experience of the Zamil Holding partnership with the Fund, explaining that long-term investment and mutual trust are among the secrets of the success of such partnerships.

Zamil indicated that the financial revenues might take time. The main goal is to grow with the available human and technical capabilities and benefit from them long-term.

The President and CEO of ACWA Power, Paddy Padmanathan, confirmed that the partnership with PIF gives confidence and credibility to provide and develop new outputs and products on a large scale.

Padmanathan pointed out that the partnership experience enabled the company's rapid growth and attracted huge capital.

He said the partnership also gave ACWA Power additional value and provided the ability to develop products on a large scale, with greater opportunities for joint investments.

- Memoranda of Understanding

During the forum, the Public Investment Fund signed four memorandums of understanding (MoU) with several entities and agencies to enhance cooperation through many initiatives to empower the local private sector in strategic sectors in the Kingdom.

The memorandums of understanding were signed on the sidelines of the inaugural PIF Private Sector Forum in Riyadh.

The Fund signed the first memorandum with the Local Content and Government Procurement Authority to develop local content in the national economy by cooperating in developing the programs and strategies and offering local content opportunities in the sovereign Fund's strategic sectors.

PIF signed an MoU with the Building Technology Stimulus Initiative under the Ministry of Municipal, Rural Affairs, and Housing to explore opportunities for developing modern construction methods and related technologies to serve the future direction of the housing and construction sectors in the Kingdom.

The third MOU was agreed upon with the Saudi Contractors Authority to follow through on the objectives of the PIF real estate schemes by cultivating the Kingdom's local contracting sector.

The Fund concluded the fourth agreement with the Federation of Saudi Chambers to define cooperation, activate the role of the private sector in projects and investments and increase local content based on the part of the Federation as an umbrella for the business sector and chambers of commerce in the Kingdom.



How 2025 Decisions Redrew the Future of Riyadh’s Real Estate Market

Construction is seen at a real estate project in Riyadh. (SPA)
Construction is seen at a real estate project in Riyadh. (SPA)
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How 2025 Decisions Redrew the Future of Riyadh’s Real Estate Market

Construction is seen at a real estate project in Riyadh. (SPA)
Construction is seen at a real estate project in Riyadh. (SPA)

The Saudi capital underwent an unprecedented structural shift in its real estate market in 2025, driven by a forward-looking agenda led by Prince Mohammed bin Salman, Crown Prince and Prime Minister. Far from incremental regulation, the year’s measures amounted to a deep corrective overhaul aimed at dismantling long-standing distortions, breaking land hoarding, expanding affordable housing supply, and firmly rebalancing landlord-tenant relations.

Together, the decisions ended years of speculation fueled by artificial scarcity and pushed the market toward maturity, one grounded in real demand, fair pricing, and transparency.

Observers dubbed 2025 a “white revolution” for Saudi real estate. The reforms severed the link between property and short-term speculation, restoring housing as a sustainable residential and investment product. Below is a detailed outline of the most significant of these historic decisions:

1- Unlocking land, boosting supply

In March, authorities lifted restrictions on sale, subdivision, development permits, and planning approvals for 81 million square meters north of Riyadh. A similar decision in October freed another 33.24 million square meters to the west.

The Royal Commission for Riyadh City was also mandated to deliver 10,000 - 40,000 fully serviced plots annually at subsidized prices capped at SAR 1,500 per square meter, curbing price manipulation and offering real alternatives for citizens.

2- Rent controls and contractual fairness

To stabilize households and businesses, the government froze annual rent increases for residential and commercial leases in Riyadh for five years starting in September. Enforced through the upgraded “Ejar” platform, the move halted arbitrary hikes while aligning growth with residents’ quality of life.

3- Tougher fees

An improved White Land Tax took effect in August, extending beyond vacant plots to include unoccupied built properties. Annual fees rose to as much as 10% of land value for parcels of 5,000 square meters or more within urban limits, raising the cost of land hoarding and incentivizing prompt development.

4- Investment openness and digital governance

A revised foreign ownership regime allowed non-Saudis - individuals and companies - to own property in designated zones under strict criteria, injecting international liquidity. Transparency was reinforced by the launch of the “Real Estate Balance” platform, providing real-time price indicators based on actual transactions and curbing phantom pricing.

5- Quality and urban standards

Policy shifted from quantity to quality with mandatory application of the Saudi Building Code and sustainability standards for all new developments, ensuring long-term operational value and preventing low-quality sprawl.

Structural shift

Sector specialists told Asharq Al-Awsat the measures represent a qualitative leap in market management, moving Riyadh from a scarcity and speculation-led cycle to a balanced market governed by genuine demand, efficient land use, disciplined contracts, and transparent indicators.

Khaled Al-Mobid, CEO of Menassat Realty Co., said the reforms were timely and corrective after years of rapid price escalation. He noted early positives: slowing price growth, a return to realistic negotiations, increased supply in some districts, and better-quality offerings focused on intrinsic value rather than quick appreciation.

Abdullah Al-Moussa, a real estate expert and broker, described the steps as addressing root causes, not symptoms.

He observed a behavioral shift, especially in northern Riyadh, from “hold and wait” to reassessment, alongside calmer price momentum, renewed interest in actual development, and clearer rental dynamics.

Saqr Al-Zahrani, another market expert, told Asharq Al-Awsat that the reforms tackled structural imbalances by breaking artificial scarcity created by undeveloped land banks.

Opening vast tracts north and west and introducing market-wide indicators restored “organized abundance,” aligning prices with real demand and purchasing power without heavy-handed intervention, he remarked.

He added that recent months have seen weaker demand for raw land and stalled auctions, contrasted with rising interest in off-plan sales and partnerships with developers.

Banks, too, have reprioritized toward projects with operational viability, lifting overall supply quality despite a temporary slowdown in some transactions.

Consumers, meanwhile, are showing greater patience and interest in self-build options, signaling a maturing market awareness.

Outlook

Experts expect the effects to continue through 2027, delivering broad price stability with limited corrections in overheated locations rather than sharp declines.

Homeownership, especially among young buyers, is projected to rise as capital shifts from land speculation to long-term development.

The 2025 decisions were not short-term fixes but the launch of a new social and economic trajectory for Riyadh’s property market, redefining real estate as a housing service and value-adding investment, not a speculative vessel.

As Riyadh advances toward becoming one of the world’s ten largest city economies, its real estate reset offers a model for aligning regulation with quality of life, transparency, and sustainable growth.


Deal to Export Oil from Kurdish Region to Continue with No Issues, Kurdish Rudaw Reports

A staff at an oilfield holds the flag of Kurdistan. (X)
A staff at an oilfield holds the flag of Kurdistan. (X)
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Deal to Export Oil from Kurdish Region to Continue with No Issues, Kurdish Rudaw Reports

A staff at an oilfield holds the flag of Kurdistan. (X)
A staff at an oilfield holds the flag of Kurdistan. (X)

Kurdistan broadcaster Rudaw quoted the ​vice president of Iraq's state oil company SOMO as saying ‌on Saturday that ‌the ‌oil ⁠export ​deal ‌between Baghdad and Erbil is set to be renewed with ⁠out issues, Reuters reported.

In September, ‌Iraq restarted ‍the ‍export of ‍oil from its Kurdish region to Türkiye after ​an interruption of more ⁠than two years following a deal between Baghdad and the Kurdish regional government.


Musk Wins Appeal that Restores 2018 Tesla Pay Deal Now Worth about $139 Billion

FILE PHOTO: Elon Musk attends the Breakthrough Prize awards in Los Angeles, California, U.S., April 13, 2024. REUTERS/Mario Anzuoni/File Photo
FILE PHOTO: Elon Musk attends the Breakthrough Prize awards in Los Angeles, California, U.S., April 13, 2024. REUTERS/Mario Anzuoni/File Photo
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Musk Wins Appeal that Restores 2018 Tesla Pay Deal Now Worth about $139 Billion

FILE PHOTO: Elon Musk attends the Breakthrough Prize awards in Los Angeles, California, U.S., April 13, 2024. REUTERS/Mario Anzuoni/File Photo
FILE PHOTO: Elon Musk attends the Breakthrough Prize awards in Los Angeles, California, U.S., April 13, 2024. REUTERS/Mario Anzuoni/File Photo

Elon Musk's 2018 pay package from Tesla, once worth $56 billion, was restored by the Delaware ​Supreme Court on Friday, nearly two years after a lower court struck down the compensation deal as "unfathomable." The ruling overturns a decision that had prompted a furious backlash from Musk and damaged Delaware's business-friendly reputation. It assures Musk greater control over the company, which he has said is his main concern, even after shareholders recently approved a new pay package that could be worth $878 billion if Tesla meets certain targets, Reuters reported.

The Supreme Court said a 2024 ruling that rescinded the pay package had been improper and inequitable to Musk. The remedy of total rescission "leaves Musk uncompensated for his time and efforts over a period of six years," the 49-page ruling issued on Friday stated.

The 2018 pay package is now worth about $139 billion based on the price of Tesla's stock at the close of trading on Friday. "For ‌Elon, this is ‌a win because he gets control faster," said Gene Munster, managing partner at Tesla ‌investor ⁠Deepwater ​Asset Management.

If Musk ‌exercises all the stock options from the 2018 package, his stake in Tesla would grow from about 12.4% to 18.1% of an expanded share base. The company is issuing shares tied to his new pay package, although he must earn them by hitting performance goals.

Tesla shares were up less than 1% in after-hours trading following the ruling.

Tesla did not immediately respond to a request for comment. Musk posted on X that he was "vindicated." Lawyers who challenged the pay package said in a statement that they were considering their next steps and were "proud to have participated in the historic verdict below, calling to account the Tesla board and its largest stockholder for their breaches of fiduciary duty." The pay package was by ⁠far the largest ever until Tesla shareholders approved the new pay plan in November. If Tesla’s appeal had failed, it could have triggered a $26 billion hit to profit over two ‌years to account for the replacement stock-compensation package it had promised Musk – at ‍today’s much higher stock price.

The 2018 pay deal provided Musk options ‍to acquire about 304 million Tesla shares at a deeply discounted price if the company hit various milestones, which it did. ‍The options represent around 9% of Tesla's outstanding stock. Musk never collected his stock options because soon after shareholders approved the 2018 compensation, the board was sued by Richard Tornetta, an investor with nine Tesla shares.

UNFRIENDLY TO BUSINESS?

In 2024, after a five-day trial, Delaware Judge Kathaleen McCormick concluded that Tesla's directors were conflicted and key facts were hidden from shareholders when they voted to approve the plan. She ordered that the 2018 plan be rescinded.

Musk ​accused Delaware judges of being activists who are hostile to tech founders and he urged businesses to follow Tesla and reincorporate elsewhere. Dropbox, Roblox, Trade Desk and Coinbase were among the handful of large companies that moved ⁠their legal homes to Nevada or Texas. However, Delaware remains by far the most popular legal home for U.S. public companies.

Tesla's board had warned that Musk, the world's richest person who also leads the SpaceX rocket venture and artificial intelligence startup xAI, could leave the electric car company if he did not get the pay he wanted and an increase in his voting power. The Delaware Supreme Court may have been reluctant to annul Musk's pay package because shareholders had overwhelmingly voted in favor of it, said Brian Dunn, director of the Institute for Compensation Studies at Cornell University’s School of Industrial and Labor Relations. "I think that there's some belief that maybe the courts shouldn't get between the shareholders and the decisions that they make," said Dunn. Shareholders approved the new pay package in November and Tesla has taken steps to reduce the risk that a shareholder could tie up the 2025 package in the courts.

The Austin-based company is now incorporated in Texas, which allows Tesla to require that any investor or group of investors must own 3% of the company stock before suing for an alleged corporate law violation. A ‌stake of that size would be worth around $30 billion and Musk is the only individual with that much stock.