PIF’s Acquisition of Two Steel Companies Boosts Saudi Economic Growth

Saudi Arabia’s Public Investment Fund acquires full ownership of “Hadeed,” owned by SABIC (SABIC’s website)
Saudi Arabia’s Public Investment Fund acquires full ownership of “Hadeed,” owned by SABIC (SABIC’s website)
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PIF’s Acquisition of Two Steel Companies Boosts Saudi Economic Growth

Saudi Arabia’s Public Investment Fund acquires full ownership of “Hadeed,” owned by SABIC (SABIC’s website)
Saudi Arabia’s Public Investment Fund acquires full ownership of “Hadeed,” owned by SABIC (SABIC’s website)

Saudi Arabia’s Public Investment Fund (PIF) has announced the signing of a share purchase agreement worth around $3.3 billion to acquire a 100% shareholding in the Saudi Iron & Steel Company (Hadeed) from the Saudi Basic Industries Corporation (SABIC).

Simultaneously, Hadeed will acquire a 100% shareholding in AlRajhi Steel Industries Company (Rajhi Steel) from Mohammed Abdulaziz AlRajhi & Sons Investment Company (Rajhi Invest). This exchange involves newly issued shares in Hadeed.

The announcement of these two deals came in a statement released by PIF on Sunday.

In the statement, PIF indicated that the acquisitions will support its efforts in contributing to the development of the local industry and meeting the increasing domestic demand for products in the construction, automotive, utilities, renewable energy, transportation, logistics, and other sectors, aligning with the goals of Saudi Vision 2030.

“These transactions will bring together PIF’s financial capabilities and industry experience with Hadeed and Rajhi Steel’s leading technical and commercial expertise, to create a national champion in Saudi Arabia’s steel sector,” said Yazeed Al-Humied, the PIF’s deputy governor and head of Middle East and North Africa investments.

Financial analysts have described these deals as significant contributors to the growth of the Saudi economy in globally critical economic sectors.

They emphasize the diversification of income sources and achieving financial sustainability for the Saudi economy.

Furthermore, these acquisitions will bolster the investment portfolio of PIF and establish a new Saudi powerhouse capable of global competition in the iron and steel sector, with the potential to engage in numerous large-scale projects both within and outside the Kingdom.

Financial analyst Abdullah Al-Jubaili, in his conversation with Asharq Al-Awsat, sees the acquisitions as part of the government’s efforts to bolster the growth of the Saudi economy in globally significant economic sectors.

Infrastructure and iron sectors are considered key pillars of this endeavor.

Al-Jubaili further elaborates that PIF’s purchase of both SABIC's Hadeed and Al Rajhi Iron and their merger into a single entity will contribute to the emergence of a new Saudi powerhouse capable of global competition in this market.

This entity will be positioned to engage in numerous large-scale projects, both domestically and internationally.

Al-Jubaili explains that the timing of the acquisition coincides with the sharp decline in financial results for petrochemical companies. This move will assist SABIC soon to focus on enhancing its profitability in the petrochemical sector, given the global pressure on product prices and sector sales.

Additionally, the company will concentrate on its targeted sector and utilize its sales proceeds to expand in the petrochemical industry. This expansion may involve increasing the capacity of its factories or introducing new products to the markets.

 

 



Saudi-US Trade and Investment Council Meetings Kick Off in Riyadh

Chaired by the GAFT, the Saudi-US Trade and Investment Council aims to strengthen economic cooperation between the two countries by reviewing trade and investment policies, addressing barriers, and supporting technical dialogue among relevant entities. (SPA)
Chaired by the GAFT, the Saudi-US Trade and Investment Council aims to strengthen economic cooperation between the two countries by reviewing trade and investment policies, addressing barriers, and supporting technical dialogue among relevant entities. (SPA)
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Saudi-US Trade and Investment Council Meetings Kick Off in Riyadh

Chaired by the GAFT, the Saudi-US Trade and Investment Council aims to strengthen economic cooperation between the two countries by reviewing trade and investment policies, addressing barriers, and supporting technical dialogue among relevant entities. (SPA)
Chaired by the GAFT, the Saudi-US Trade and Investment Council aims to strengthen economic cooperation between the two countries by reviewing trade and investment policies, addressing barriers, and supporting technical dialogue among relevant entities. (SPA)

Technical team meetings of the Saudi-US Trade and Investment Council (TIFA) kicked off in Riyadh on Tuesday.

Held under the theme “A Platform for Dialogue, Partnership, and Economic Growth,” the meetings were attended by Deputy Governor of the General Authority of Foreign Trade (GAFT) for International Relations Abdulaziz Alsakran, Assistant United States Trade Representative for Europe and the Middle East Bryant Trick, with the participation of 20 entities from both sides.

Chaired by the GAFT, the Saudi-US Trade and Investment Council aims to strengthen economic cooperation between the two countries by reviewing trade and investment policies, addressing barriers, and supporting technical dialogue among relevant entities.

The council focuses on five main objectives: developing trade and investment policies; facilitating trade and addressing technical and regulatory barriers; supporting cooperation on sanitary and phytosanitary measures and agricultural products; enhancing intellectual property protection; and advancing digital trade, innovation, and emerging technologies.

Saudi government entities participating in the council work to develop initiatives and activities that help elevate cooperation between the two countries and achieve its objectives, serving mutual interests.

Over the past ten years, trade exchange between Saudi Arabia and the United States has reached $500 billion, making the United States the Kingdom’s second-largest import partner. Trade exchange since 2020 has recorded a growth rate exceeding 50%, reflecting the depth and strength of economic relations between the two countries.


Iraq to Export More Kirkuk Crude Oil Next Month

Oil flows through the Kirkuk-Ceyhan pipeline resumed in late September (Reuters)
Oil flows through the Kirkuk-Ceyhan pipeline resumed in late September (Reuters)
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Iraq to Export More Kirkuk Crude Oil Next Month

Oil flows through the Kirkuk-Ceyhan pipeline resumed in late September (Reuters)
Oil flows through the Kirkuk-Ceyhan pipeline resumed in late September (Reuters)

Iraq will export a ​total of 223,000 barrels per day (bpd) in February, up by 21% on the month, ‌loading programs ‌seen ‌by ⁠Reuters ​show.

January ‌exports were scheduled at 184,000 bpd. Of the February cargoes, eight will be ⁠exported from ‌Türkiye's Ceyhan terminal, and ‍three ‍will be ‍delivered via the Kirikkale pipeline to Turkish refiner Tupras.

Kirkuk ​oil pipeline flows to Ceyhan restarted ⁠in late September after a two-and-a-half-year hiatus, with the first exports taking place last October.


From Davos: The World Looks to Saudi Vision, from Reform to Delivery

The logo of the World Economic Forum at the Davos Conference Center (AFP)
The logo of the World Economic Forum at the Davos Conference Center (AFP)
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From Davos: The World Looks to Saudi Vision, from Reform to Delivery

The logo of the World Economic Forum at the Davos Conference Center (AFP)
The logo of the World Economic Forum at the Davos Conference Center (AFP)

At the 2026 World Economic Forum in Davos, Saudi Arabia offered a compelling account of how long-term ambition can be translated into measurable results.

Through a narrative grounded in data and outcomes, Saudi ministers traced the evolution of Vision 2030 from structural reform to disciplined execution, presenting the Kingdom as one of the world’s most attractive investment destinations.

Rising capital-formation rates now place Saudi Arabia alongside major economies such as China and India, underscoring growing international confidence in the strength and future of its economy.

On the margins of the forum, a high-level dialogue at the Saudi House pavilion brought together Princess Reema bint Bandar Al Saud, Saudi ambassador to the United States; Minister of Investment Khalid Al-Falih; Minister of Finance Mohammed Al-Jadaan; Minister of Economy and Planning Faisal Alibrahim; IMF Managing Director Kristalina Georgieva; and Lubna Olayan, Chair of Olayan Financing.

Titled From Reform to Delivery: Implementing Change at Scale, the session examined the next phase of Vision 2030 and how it has enhanced the government’s capacity for evidence-based planning and execution.

Saudi Arabia’s presence at the 2026 forum runs from Jan. 19-23 through an expanded Saudi House program - the largest since its launch - bringing together ministers, senior officials, business leaders and global thinkers.

From vision to policy discipline

Al-Jadaan emphasized that visions and reform agendas cannot be taken for granted. The true test, he said, lies not in designing strategies but in sustaining their execution, an area where many reform efforts around the world lose momentum. Saudi Arabia’s fiscal framework, supported by record foreign reserves at the central bank, has provided the flexibility needed to absorb shocks and maintain reform momentum.

He noted that 93 percent of Vision 2030’s key performance indicators have either been achieved or are progressing as planned. He added that reform has moved beyond individual initiatives to become a permanent institutional practice, supported by a 22 percent rise in financial reserves between 2022 and 2025.

He also stressed that trust and credibility are central to this process. Sustained progress depends on maintaining confidence with markets and stakeholders through pragmatic fiscal discipline and clear prioritization of resources. With fiscal space always finite, sequencing and focus are essential. He pointed to IMF Article IV consultations as a rigorous external validation of Saudi Arabia’s economic direction, noting that ambitions set a decade ago are now reflected in tangible outcomes, with hundreds of indicators either exceeding targets or firmly on track.

Converting strategy into outcomes

Building on this theme, Alibrahim said that turning strategies into results requires clarity of purpose, institutional adaptability and the ability to adjust course quickly. He explained that sustainable transformation cannot be achieved without a conscious approach to managing risk.

According to Alibrahim, Vision 2030’s long-term perspective has strengthened the government’s ability to plan, execute and respond to data, allowing it to change direction when needed while balancing risks and opportunities over both short and long horizons.

Attracting global capital

Al-Falih placed Saudi Arabia’s experience within a broader global context marked by geopolitical uncertainty, strained supply chains and rapid technological change. He noted that capital cannot avoid risk entirely but must find ways to balance it with the need for growth, particularly at a time when the world requires vast investment to navigate major transitions. These include energy digitization and the restructuring of global artificial intelligence supply chains.

He further explained that investors are increasingly drawn to markets that combine scale with access to global opportunities. This, in turn, requires skilled human capital, reliable energy, credible decarbonization pathways, advanced physical and digital infrastructure, and transparent, predictable regulatory systems. He said that few countries offer all these elements together, adding that Saudi Arabia has succeeded in doing so.

Al-Falih continued that foreign direct investment has risen to five times its pre–Vision 2030 level, while domestic investors have also increased their commitments. Capital formation as a share of GDP now matches levels seen in China and India, with visible effects across global supply chains, from shipbuilding on the eastern coast to automotive manufacturing on the western coast, as well as green and blue hydrogen projects developed with international partners.

Energy, markets and new frontiers

Al-Falih noted that the availability of Saudi capital, combined with a partnership-driven approach, has been a decisive factor. The government co-invests alongside the Public Investment Fund, major national companies and the private sector, aligning capital with strategic priorities.

While petrochemicals, fertilizers and mining remain important, the scope of transformation has broadened significantly. Saudi capital markets have become more integrated, the exchange-traded fund ecosystem has expanded, and inclusion in major global indices has lowered barriers for international investors.

At the same time, he said that the Kingdom is moving beyond its traditional role as an oil and gas supplier. It is investing in hydrogen, accelerating renewable energy localization and developing cross-border electricity interconnections with Africa, the Gulf, Iraq and Egypt. Investments in critical minerals and global supply chains now extend to joint ventures in the United States and Asia, supporting demand in a low-carbon economy. Saudi Arabia, Al-Falih concluded, also aims to position itself as a hub for the new economy, including data and artificial intelligence.

Georgieva: A transformation that inspires

Georgieva described Saudi Arabia’s reform journey as a “generational transformation” that spans sectors and places the Kingdom in a position of global leadership. Reforms that reduced the state’s direct role while enabling the private sector to flourish, she said, now underpin the country’s economic resilience.

She highlighted the breadth of diversification — from finance and tourism to sports and fashion — as particularly striking, adding that Saudi Arabia has also emerged as a partner and sponsor of reform beyond its borders, with the IMF office in Riyadh helping to share the Saudi experience with other countries. Concluding her remarks, she urged Saudi leaders and officials to maintain momentum and continue supporting others on similar paths.

Princess Reema, for her part, emphasized that human capital remains the engine of long-term growth. She said that investment in youth, job creation and a supportive social environment, encouraged many young Saudis to build their futures at home.

Lubna Olayan observed that the business landscape has undergone a notable shift. Where large corporations once dominated, small and medium-sized enterprises are now playing a growing role, supported by banks and new financing channels. She noted that economic diversification has opened private-sector opportunities, particularly in tourism, a labor-intensive service industry.

Powell: A model with global relevance

In a separate Saudi House session, Dina Powell McCormick, Vice Chair of Meta’s board, said her 25-year relationship with Saudi Arabia has given her a firsthand view of “extraordinary progress” under Vision 2030.

Recalling discussions in Washington in 2017 during her tenure as US deputy national security advisor under President Donald Trump, she described a long-term roadmap centered on unlocking the potential of a population that is more than 65 percent under the age of 35 and on the expanding role of women as entrepreneurs and leaders.

On technology, Powell said the world is approaching a pivotal moment that could reshape humanity within just three to eight years, making Saudi Arabia’s execution-focused transformation a model of growing relevance well beyond the region.