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.



Saudi Arabia Drives September Surge in OPEC+ Output Despite Iran War Disruptions

An oil tanker at Ras Al-Khair port, north of Dammam, in 2019. REUTERS
An oil tanker at Ras Al-Khair port, north of Dammam, in 2019. REUTERS
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Saudi Arabia Drives September Surge in OPEC+ Output Despite Iran War Disruptions

An oil tanker at Ras Al-Khair port, north of Dammam, in 2019. REUTERS
An oil tanker at Ras Al-Khair port, north of Dammam, in 2019. REUTERS

OPEC+ crude output surged in September as Saudi Arabia ramped up production, despite continued disruption to oil shipments through the Strait of Hormuz caused by the Iran war, OPEC said in its monthly report on Tuesday.

The Organization of the Petroleum Exporting Countries raised its forecast for global oil demand growth in 2027 to 2.55 million barrels per day (bpd) from 2.36 million bpd, citing the need to replenish inventories depleted by war-related supply disruptions.

But it cut its demand growth forecast for this year for a sixth straight month, to 180,000 bpd from about 380,000 bpd in its August estimates.

OPEC+, which groups OPEC members and allies including Russia, pumped an average of 39.068 million bpd in September, up 903,000 bpd from 38.165 million bpd in August, the report showed.

Output has risen by about 1.36 million bpd since July, when it stood at 37.710 million bpd, according to the secondary sources OPEC uses to track production.

OPEC members drove the increase, raising output by about 920,000 bpd to 25.097 million bpd from 24.177 million bpd a month earlier. Production by participating non-OPEC countries fell by about 18,000 bpd.

Saudi Arabia leads surge

Saudi Arabia posted the alliance's largest production increase. Output climbed to 8.372 million bpd in September from 6.238 million bpd in August, a gain of more than 2 million bpd, according to figures the kingdom submitted to OPEC.

The increase comes as Saudi Arabia seeks to restore oil flows and strengthen the resilience of its exports against war-related disruptions. Aramco increased oil loadings at Gulf export terminals in September after an attack on the East-West pipeline disrupted shipments through the Red Sea.

Inventory rebuilding to support demand

OPEC expects global oil demand to rise by 2.55 million bpd in 2027 to average 108.3 million bpd, compared with 108.19 million bpd in last month's forecast.

The forecast assumes demand growth in 2026 will slow as currently expected, with the need to replenish depleted inventories supporting growth next year, OPEC said.

For 2026, the group expects demand growth of just 180,000 bpd. It also cut its fourth-quarter demand estimate to 107.73 million bpd from 107.85 million bpd in last month's report.

Demand in countries belonging to the Organisation for Economic Co-operation and Development is forecast to shrink by about 210,000 bpd this year, while demand in non-OECD economies is expected to grow by 390,000 bpd.

Oil supply from outside OPEC+ is forecast to grow by 640,000 bpd in 2026 and 620,000 bpd in 2027.

Russian output declines

Russian oil output fell by 38,000 bpd in September to 8.643 million bpd, the report showed, amid continued Ukrainian strikes on Russian energy infrastructure, including refineries.

Russian Deputy Prime Minister Alexander Novak said the country would trim oil production this year. Russia's Economy Ministry lowered its 2026 output forecast to a 17-year low amid the war with Ukraine.

Kazakhstan's production rose by 22,000 bpd in September to 1.851 million bpd, according to the OPEC report.


From Hydrogen to AI, Energy Leaders Map the Sector’s Global Future

A panel discussion examines challenges and opportunities at the World Petroleum Congress in Riyadh (Asharq Al-Awsat)
A panel discussion examines challenges and opportunities at the World Petroleum Congress in Riyadh (Asharq Al-Awsat)
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From Hydrogen to AI, Energy Leaders Map the Sector’s Global Future

A panel discussion examines challenges and opportunities at the World Petroleum Congress in Riyadh (Asharq Al-Awsat)
A panel discussion examines challenges and opportunities at the World Petroleum Congress in Riyadh (Asharq Al-Awsat)

Green hydrogen, artificial intelligence and strategic partnerships took center stage at the World Petroleum Congress in Riyadh, as sessions mapped the energy sector’s future amid rapid technological and industrial change.

Progress on clean energy projects, led by the NEOM Green Hydrogen Project, now 96% complete, intersected with the challenge of cutting emissions from transport, which accounts for about 30% of global energy demand.

The discussions highlighted a widening agenda: developing energy sources and reshaping how energy is produced and used to improve efficiency and sustain supplies.

Saudi Aramco said it plans to increase gas sales by 80% by 2030 compared with 2020 and 2021 levels, and to build and start operating six to seven gas and liquefied gas facilities between 2025 and 2027.

Decarbonization

Transport and logistics account for about 30% of global energy demand, Saudi Vice Minister of Transport and Logistics Services Rumaih Al-Rumaih told a conference session.

Decarbonization is a long journey that requires a broader energy mix, he said, stressing the need for available, reliable, affordable and safe supplies.

The Saudi Green Initiative provides a framework for reaching net-zero emissions by 2060, with transport playing a major role, Al-Rumaih said.

Saudi Arabia is expanding public transport and cutting urban emissions to meet its commitments, he added. The Riyadh Metro network spans 187 kilometers and has 85 stations.

Green hydrogen

National Development Fund Governor Abdulaziz Al-Arifi said the fund had provided financing and strategic support for the NEOM Green Hydrogen Project alongside local banks and other entities and organizations.

That support helped advance one of the clean energy sector’s leading projects, strengthening investment opportunities and local content, he told the conference.

ACWA Power Chairman Mohammad Abunayyan said local resources, knowledge and expertise accounted for about 90% of those used in new projects. He reaffirmed the company’s commitment to expanding investment and overcoming challenges on the ground in major global markets such as China.

At the same session, Saudi Aramco Executive Vice President of Gas Abdulkarim Al-Ghamdi discussed operational readiness and supply chains.

Resource localization under the company’s iktva program had reached levels ranging from more than 75% to 90%, he said, offering strong protection against external disruptions.

Saudi personnel and technological integration are the two pillars of sustained gas-sector growth and future resilience, he said.

Artificial intelligence

A panel at the 25th World Petroleum Congress explored how energy powers artificial intelligence, how the two sectors interact and how AI can sharpen decisions, improve operations and raise energy efficiency.

Speakers said development of the energy and electricity sectors under Vision 2030 aims to meet demand and attract investment, including in AI data centers that need reliable, competitively priced electricity.

The approach involves anticipating sectors’ needs and connecting them with investors. Speakers stressed the need to integrate infrastructure, data, technology and human expertise, drawing on Saudi Arabia’s strengths to develop solutions and bring them to global markets.

Smart meters

AI can improve forecasts of electricity loads and demand and detect grid faults early, helping planners respond faster, speakers said.

Smart meter data can track consumption, forecast bills, show electricity use by appliance and flag unusual usage.

In oil and gas exploration and resource development, particularly drilling, AI can analyze data in real time and combine engineering models with geological information.

This can speed up decisions, improve accuracy, shorten the gap between planning and execution, enhance safety and support risk assessments and investment decisions.

To expand these applications, companies must deliver tangible business value and integrate the tools into operations, speakers said.

They must also ensure data quality and timely collection, train personnel to assess outputs and keep people involved in final decisions, while using digital tools to reduce risks.


IMFC Extends Aljadaan's Term as Chair by One Year

Saudi Arabia's Finance Minister Mohammed Al-Jadaan speaks during a press briefing following a meeting of the IMFC (International Monetary and Financial Committee) at the 2026 IMF and World Bank Group Spring Meetings in Washington, DC, on April 17, 2026. (Photo by Kent Nishimura / AFP)
Saudi Arabia's Finance Minister Mohammed Al-Jadaan speaks during a press briefing following a meeting of the IMFC (International Monetary and Financial Committee) at the 2026 IMF and World Bank Group Spring Meetings in Washington, DC, on April 17, 2026. (Photo by Kent Nishimura / AFP)
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IMFC Extends Aljadaan's Term as Chair by One Year

Saudi Arabia's Finance Minister Mohammed Al-Jadaan speaks during a press briefing following a meeting of the IMFC (International Monetary and Financial Committee) at the 2026 IMF and World Bank Group Spring Meetings in Washington, DC, on April 17, 2026. (Photo by Kent Nishimura / AFP)
Saudi Arabia's Finance Minister Mohammed Al-Jadaan speaks during a press briefing following a meeting of the IMFC (International Monetary and Financial Committee) at the 2026 IMF and World Bank Group Spring Meetings in Washington, DC, on April 17, 2026. (Photo by Kent Nishimura / AFP)

The International Monetary and Financial Committee (IMFC) of the International Monetary Fund (IMF) announced a request for a one-year extension of Saudi Finance Minister Mohammed Aljadaan's term as Committee Chair after his current term ends on January 3, 2027.

The move aims to ensure continuity in the Committee's work and maintain momentum in advancing its key priorities, including important ongoing reforms.

In a statement issued Tuesday, the IMF said Committee members had asked Aljadaan to extend his term as Chair for an additional year and that he had agreed. Aljadaan was selected to chair the Committee for a three-year term beginning January 4, 2024.

Committee members expressed appreciation for Aljadaan's leadership, saying the extension would help ensure continuity and sustain momentum in addressing the Committee's key priorities, including its efforts on important ongoing reforms.

The IMFC is the primary policy advisory body of the IMF's Board of Governors and comprises finance ministers and central bank governors. It deliberates on major policy issues facing the Fund and the international monetary and financial system.

The Committee has 25 members, reflecting the composition of the IMF's Executive Board. Each member country, or group of member countries that elects an Executive Director to the Board, appoints a representative to the Committee.

The IMFC normally meets twice a year, once during the Spring Meetings and again in the fall, alongside the Annual Meetings of the IMF and World Bank Group.