PIF Signs Agreement to Invest in Alkhorayef Petroleum

The investment demonstrates PIF’s broader efforts to develop Saudi Arabia’s equipment and service landscape and support the growth of promising private sector companies to further develop the industrial ecosystem and increase export revenues.

16:29-13 November 2023 AD ـ 29 Rabi’ Al-Thani 1445 AH

PIF Signs Agreement to Invest in Alkhorayef Petroleum

Saudi Arabia’s Public Investment Fund (PIF) announced on Monday the signing of a share subscription agreement to invest in Alkhorayef Petroleum, from Alkhorayef Group, by way of a capital increase and subscription to new shares amounting to a 25% shareholding in the company. Alkhorayef Group, the parent company and current shareholder of Alkhorayef Petroleum, will retain a 75% stake.

This investment demonstrates PIF’s broader efforts to develop Saudi Arabia’s equipment and service landscape and support the growth of promising private sector companies to further develop the industrial ecosystem and increase export revenues.

Alkhorayef Petroleum is the leading Saudi-based provider and manufacturer of oil and gas production optimization solutions, specializing in artificial lift, wireline services and equipment, as well as early production facilities.

The company is also the only Gulf-based manufacturer of electric submersible pumps; equipment critical to oil and gas production. It has achieved a diversified revenue base and a successful operational track record in 13 countries across the Gulf Cooperation Council countries, as well as in Africa and Latin America.

PIF’s investment will enable Alkhorayef Petroleum, a private sector company, to be better positioned to realize its full potential by leveraging its extensive technical and commercial capabilities. It will also strengthen its position in the energy services industry and create long-term value for shareholders. The agreement will further improve supply chains in the energy services sector in Saudi Arabia.

Head of Industrials and Mining sector in MENA Investments at PIF Mohammad Aldawood said: "This transaction forms part of PIF’s broader efforts to deepen the manufacturing sector in Saudi Arabia and represents a milestone in strengthening the regional industrial ecosystem."

"This investment is expected to enable Alkhorayef Petroleum’s growth strategy in local and international markets, and further expand its manufacturing output while also focusing on innovative R&D in high-growth areas," he added.

"Our investment aligns with PIF’s domestic strategy to develop key sectors and work alongside strategic economic partners in the private sector to support the delivery of Vision 2030," he stressed.

Chairman of Alkhorayef Petroleum and Alkhorayef Group Saad Alkhorayef said: "This investment is a recognition of our achievements in the Middle East as well as across Africa and Latin America, and the strategic role Alkhorayef Petroleum plays in supporting the oil and gas sector in Saudi Arabia and other regions."

"The investment with PIF is a major milestone in our journey and will allow the company to strengthen its position as a leading oilfield services company and preferred long-term partner to our customers worldwide. We firmly believe that the company can become one of the world’s leading oilfield services companies, and this investment further reinforces our ambition and determination," he stated.

The completion of the agreement is subject to certain customary approvals from the relevant authorities and satisfaction of certain conditions in the transaction agreements.

UK Offers Cheaper Chocolate, Tickets to the Zoo to Ease Cost of Living Squeeze

Britain’s Prime Minister Keir Starmer visits a children’s activity center in Essex, Britain, Thursday, May 21, 2026. Kin Cheung/Pool via REUTERS

London: Asharq Al Awsat

06:59-22 May 2026 AD ـ 05 Thul-Hijjah 1447 AH

London: Asharq Al Awsat

06:59-22 May 2026 AD ـ 05 Thul-Hijjah 1447 AH

UK Offers Cheaper Chocolate, Tickets to the Zoo to Ease Cost of Living Squeeze

Britain’s Prime Minister Keir Starmer visits a children’s activity center in Essex, Britain, Thursday, May 21, 2026. Kin Cheung/Pool via REUTERS

The British government is offering cheaper chocolate and discounted entry to theme parks as it seeks to ease a cost-of-living squeeze and win back voters.

Treasury chief Rachel Reeves on Thursday announced modest handouts to help alleviate rising costs sparked by the Iran war, including a reduction in import tax on cookies, chocolate and about 100 other supermarket products.

UK inflation fell to 2.8% in April, down from 3.3% in March, but is expected to spike again on the back of higher prices for fuel, heating gas and electricity.

To ease the impact, the government has postponed a planned increase in fuel duty and given truckers a yearlong reprieve from road tax to help offset soaring gasoline prices due to the effective closure of the Strait of Hormuz, a key oil transit route.

But Reeves did not commit to broader support for household heating bills, The Associated Press reported.

She announced measures designed to boost the summertime economy, including free bus travel for children in August. During the summer, tax on tickets for attractions including zoos, theme parks and museums will be slashed from 20% to 5%.

Reeves said she would pay for the cost-of-living support by closing tax loopholes for oil and gas companies with overseas operations.

“This summer I want every family to be able to enjoy themselves,” Reeves said. “As the war in Iran pushes prices up at home, my economic plan is the right one. I will continue to make the right choices, to protect households and businesses, and build a stronger and more secure Britain.”

The announcements came as Prime Minister Keir Starmer tries to keep calm and carry on while rivals in the governing Labour Party seek to oust him after a set of disastrous local election results.

The last two weeks have been devastating for Starmer, who led the party to a landslide victory less than two years ago. Scores of Labour lawmakers have called for him to resign, and he is widely expected to face a leadership challenge. Greater Manchester mayor Andy Burnham is aiming to win a seat in Parliament in a June 18 special election, and then challenge Starmer for the prime minister’s job.

Starmer insists he will not resign and will fight for his job. Under UK political rules, whoever took over from Starmer as party leader would also become prime minister, without the need for a national election.

Business

Oil Gains, Stocks Slip on Uncertain Mideast Peace Prospects

A fuel storage facility at Russia's main oil export hub in the Black Sea port of Novorossiysk (Reuters)

Asharq Al Awsat

15:44-21 May 2026 AD ـ 04 Thul-Hijjah 1447 AH

Asharq Al Awsat

15:44-21 May 2026 AD ـ 04 Thul-Hijjah 1447 AH

Oil Gains, Stocks Slip on Uncertain Mideast Peace Prospects

A fuel storage facility at Russia's main oil export hub in the Black Sea port of Novorossiysk (Reuters)

Oil prices jumped while stock markets mostly retreated and the dollar firmed Thursday as hopes of a Middle East peace accord faded on conflicting headlines on the state of talks.

US President Donald Trump has described the latest discussions as being on the "borderline" between a deal and renewed strikes.

Pakistan's army chief was due in Iran on Thursday, Iranian media reported, with Islamabad mediating as Tehran examines a new US proposal to end the war, AFP reported.

"Markets pulled back across Europe as the waiting game to end the Iran war rumbled on," said Dan Coatsworth, head of markets at AJ Bell.

Wall Street's main indices also dipped at the open.

There were earlier big gains for technology stocks in Asia after chip giant Nvidia posted record quarterly revenue of $81.6 billion, blowing past analyst forecasts on the voracious demand for artificial intelligence hardware.

Sentiment was also boosted by Elon Musk's filing for a public sale of SpaceX shares, which could be the largest initial public offering in history as the rocket and satellite company seeks to raise up to $75 billion.

"This could be a blockbuster summer for IPOs with OpenAI also expected to list in the coming weeks," said Kathleen Brooks, research director at XTB.

"How the market absorbs these new listings will be crucial for the future of the AI trade, as both companies are at the heart of the AI revolution," she said.

South Korea's benchmark Kospi index surged 8.4 percent, helped by Samsung Electronics shares after unions paused a 18-day strike.

Japan's Nikkei index ended with a gain of 3.1 percent.

But despite the group's profit growth, Nvidia shares failed to get a boost as they have in previous quarters, gaining 0.2 percent after trading got underway in New York.

With tech shares, whose staggering rises helped drive markets to record highs in recent months, now considered by many investors to be overvalued, investment analyst Bret Kenwell at eToro said there were worries that a pullback was in store.

"While geopolitical risks could still flare up, the more pressing issue appears to be macro-related," he said, pointing to the recent rise in sovereign bond yields and the prospect of central banks raising interest rates.

The yields demanded by investors to lend to governments by buying their bonds have peaked in recent days, indicating weakening confidence in their economies and inflation fears.

After tech gains in Asia, attention turned to US-Iran war developments and the potential fallout for economies on the continent, sending European stocks lower.

The EU warned Thursday that eurozone growth would be less than expected this year and inflation significantly higher than forecast, as the Mideast war and subsequent energy shock take their toll.

It came as a key survey revealed that business activity in the eurozone contracted further in May, weighed down by weak demand caused by a conflict.

British private-sector activity also unexpectedly contracted this month, marking the first decline in output in over a year, S&P Global added.

"The UK economy is facing a perfect storm, as rising political uncertainty adds to the growing impact from the war in the Middle East," said Chris Williamson, chief business economist at S&P Global Market Intelligence.

In other corporate news, French video game giant Ubisoft saw its shares plunge around 11 percent after it reported disappointing annual results and forecast further pain in the coming year.

The "Assassin's Creed" and "Rayman" developer had warned in January of the likely impact, with seven games cancelled and six delayed.