Saudi Public Investment Fund (PIF) completed pricing a $5 billion Reg S international bond offering under its Euro Medium-Term Note Program, aligning with its strategy to diversify funding sources continually.
According to the Fund, the offering was over five times oversubscribed, with order books reaching $27 billion.
The offering comprised the following three tranches: $1.75 billion with a 5-year coupon maturing in 2029, $1.75 billion with a 10-year coupon maturing in 2034, and $1.5 billion with a 30-year coupon maturing in 2054.
Head of Global Capital Finance Division Fahad al-Saif said that continued strong demand from international institutional investors is a testament to the ongoing success of PIF's medium-term capital raising strategy.
He added that it reflects PIF's strong credit profile and financial strength, highlighting its role as one of the key drivers of Saudi Arabia's economic transformation and one of the most significant and impactful sovereign wealth funds globally.
Loans and debt instruments represent one of PIF's four sources of funding. PIF is rated A1 by Moody's with a positive outlook and A+ by Fitch with a stable outlook.
The Fund is one of the world's largest and most influential sovereign wealth funds, and Saudi Crown Prince Mohammed bin Salman heads its board of directors.
Since 2015, the Board of Directors of the Public Investment Fund has been reconstituted and placed under the direction of the newly formed Council of Economic and Development Affairs (CEDA).
The step gave PIF greater autonomy and better-defined national strategic responsibilities.
The Fund also plays a pioneering role in advancing the transformation and diversification of the Saudi economy, in addition to its contribution to shaping the features of the future of the global economy.
The Fund has established more than 93 companies since 2017. It is working to build a diversified portfolio by entering into attractive, long-term investment opportunities in 13 strategic sectors at the local and international levels.
PIF's strategy aims to empower many promising sectors and contribute to increasing local content by creating partnerships with the private sector, in addition to pumping at least SR150 billion annually into the local economy.
It also works to transfer technologies, localize knowledge, and establish a prosperous and sustainable economy in the Kingdom.
As the investment arm of the Kingdom, the Fund has worked to enter into distinguished investments and build strategic alliances and partnerships with many prestigious global institutions and entities.
It contributed to achieving real long-term value for the Kingdom that is consistent with the objectives of Vision 2030.
The Public Investment Fund created an operational governance model that highlights its mission and main objectives, in line with the best international practice, as the application of this model enhances the level of transparency and effectiveness in decision-making and progress in the future.
Saudi Arabia Keeps Inflation in Check Despite Geopolitical Tensions and Global Trade Disruptionshttps://english.aawsat.com/business/5341495-saudi-arabia-keeps-inflation-check-despite-geopolitical-tensions-and-global-trade
Saudi Arabia Keeps Inflation in Check Despite Geopolitical Tensions and Global Trade Disruptions
A Saudi shopper at a grocery store (SPA)
Saudi Arabia's annual inflation rate slowed to 1.7% in October from 1.9% in September, returning to its lowest level this year and signaling the economy's continued ability to contain price pressures and maintain stability despite geopolitical tensions and disruptions to global trade.
Data released Sunday by the Kingdom's General Authority for Statistics (GASTAT) showed that the Consumer Price Index (CPI) rose 0.1% month-on-month in October.
The annual slowdown was driven by relatively modest price increases across several major categories, although housing costs remained the largest contributor to inflation.
The figures showed that prices in the housing, water, electricity, gas and other fuels category rose 3.5% year-on-year in October, matching the increase in actual housing rents. The category remained the biggest driver of overall inflation.
Insurance and financial services prices also increased 3.5%, driven by a 6.5% rise in insurance service costs.
Recreation, sports and culture prices climbed 2.7%, reflecting a 4.6% increase in package holiday prices.
Food and Beverages
Transportation prices rose 2.3% year-on-year, driven by a 9.5% increase in passenger transport services.
Prices for restaurants and accommodation services increased 1.8%, while education services rose 1.3%.
Food and beverage prices, which carry considerable weight in the consumer basket, increased 1.1%, while information and communication prices rose 0.5%.
Conversely, prices for furnishings, household equipment and routine household maintenance declined 0.5%, while clothing and footwear prices fell 0.2%.
The personal care, social protection and miscellaneous goods and services category recorded a 0.6% decrease.
Monthly Comparison
On a monthly basis, the overall CPI increased 0.1%, with housing, water, electricity, gas and other fuels rising 0.2%, driven by a 0.4% increase in actual housing rents.
Food and beverage prices also rose 0.2%, while insurance and financial services increased 1.5%.
Although these figures point to an improving inflation outlook, housing costs and rents remain the most significant challenge for household budgets amid persistent cost-of-living pressures.
This raises questions about how far easing inflation is translating into stronger purchasing power and an improved quality of life.
Trade Disruptions
Saudi Arabia's annual inflation rate slowed to 1.7% in October from 1.9% in September, even as global economies continued to face mounting pressure from geopolitical tensions and disruptions to trade and supply chains.
According to financial and economic adviser Hussein Al-Attas, the slowdown reflects a combination of domestic factors that have supported price stability.
Foremost among them is the Saudi riyal's peg to the US dollar, which provides relative protection against fluctuations in import prices, alongside moderate essential commodity prices, efficient supply chains and diversified import sources.
Speaking to Asharq Al-Awsat, Al-Attas said stable monetary and exchange rate policies, together with government and regulatory measures, had helped limit the transmission of external inflationary pressures to the domestic market.
He noted that food and beverage inflation slowed to 1.1% in October from 1.4% in September, while the increase in housing costs moderated to 3.5%.
Both developments helped ease the overall inflation rate, although residential rents remained a major source of upward pressure on prices.
While October's figures indicate that inflation remains contained at moderate levels, its trajectory in the coming months will depend on domestic demand, housing costs and imported goods prices.
Al-Attas expects inflation to remain relatively moderate through the end of the year, although limited fluctuations could occur as economic activity and major projects expand.
He also warned of risks associated with rising shipping and insurance costs.
Purchasing Power
Economic analyst Ahmed Al-Shehri said the decline in Saudi Arabia's inflation rate to 1.7% in October was a positive indicator of economic stability and the country's ability to contain price pressures, particularly amid global uncertainty and geopolitical and trade challenges.
Speaking to Asharq Al-Awsat, he stressed that what mattered more than the decline in the inflation rate itself was whether that stability translated into tangible improvements in the daily lives, purchasing power and household spending of citizens and residents.
Al-Shehri identified housing costs and rents as the most pressing challenge requiring greater attention.
He explained that continued increases in these expenses meant a substantial proportion of households still faced financial pressure, even as overall inflation slowed.
Consumers, he said, do not assess economic conditions solely through indicators and percentages, but through what they pay each month for housing, food, transportation and essential services.
Controlling living costs should therefore be a priority alongside maintaining overall price stability.
Economic Stability
Al-Shehri said the next phase should focus on leveraging relatively stable inflation to strengthen purchasing power, continuing efforts to address the factors driving rent increases, and improving the efficiency of markets and supply chains.
He emphasized that economic success should not be measured solely by a lower inflation rate, but by the extent to which people experience its benefits in their everyday lives.
Genuine economic stability, he said, is reflected in a better quality of life, greater household confidence in the future and an improved ability to plan and save.
Saudi Energy Companies Post $105.6 Billion in Profits Over Nine Monthshttps://english.aawsat.com/business/5341446-saudi-energy-companies-post-1056-billion-profits-over-nine-months
Saudi Energy Companies Post $105.6 Billion in Profits Over Nine Months
A general view of Saudi Aramco's Shaybah oil field in the Empty Quarter (Reuters)
Energy companies listed on the Saudi Exchange recorded strong earnings growth during the first nine months of 2026, with combined net profits rising 42.8% to SAR 396.15 billion ($105.64 billion) compared with the same period last year.
The performance came amid sharp shifts in global energy markets driven by geopolitical tensions, supply disruptions and rising shipping costs, which affected companies across the energy industry to varying degrees.
The Saudi results reveal significant differences in how companies benefited from these developments. While Saudi Aramco accounted for the overwhelming majority of sector profits, Bahri recorded a sharp earnings increase and Petro Rabigh returned to profitability. Some drilling companies, however, reported weaker results.
Growth also extended into the third quarter, when the six companies' combined net profits rose 50.1% to SAR 145.15 billion ($38.71 billion).
Global Energy Companies' Profits
The improvement in earnings was not limited to Saudi companies. Major international oil producers also reported strong gains in the third quarter, supported by supply disruptions, higher energy prices and wider refining margins.
ExxonMobil's net profit reached $15.4 billion, compared with $7.5 billion in the same quarter last year.
Shell's adjusted earnings rose to $10.81 billion from $5.43 billion, while TotalEnergies' adjusted net income surged to $9.1 billion from $4 billion a year earlier.
The companies said supply disruptions in the Middle East, combined with limited available refining capacity and declining inventories, had pushed refining margins to historically high levels.
According to Reuters, Shell's refining margins approached $42 per barrel, while those at TotalEnergies reached approximately $33.20 per barrel, boosting earnings from petroleum products and trading operations.
Aramco Leads Sector Profits
Saudi Aramco topped the energy sector in net profits during the first nine months of 2026, with earnings attributable to shareholders rising 36.1% to SAR 379.02 billion ($101.07 billion), compared with SAR 278.57 billion ($74.29 billion) in the corresponding period last year.
The company accounted for approximately 95.7% of the sector's combined net profits, reflecting the considerable weight of its results in determining overall performance.
That dominance also underscores the importance of examining the other companies individually to understand developments across different energy-related activities.
Aramco's revenue and other income related to sales increased 20.8% to approximately SAR 1.52 trillion ($405.33 billion), compared with around SAR 1.25 trillion ($333.33 billion) during the first nine months of 2025.
Bahri Records Sharp Profit Surge
The National Shipping Company of Saudi Arabia (Bahri) ranked second in net profits, recording a 586.7% surge to approximately SAR 9.98 billion ($2.66 billion), compared with SAR 1.45 billion ($386.7 million) during the first nine months of the previous year.
Revenue also climbed 268.4% to approximately SAR 26.1 billion ($6.96 billion), up from SAR 7.08 billion ($1.89 billion).
The performance reflects the company's gains from stronger maritime transportation activity and higher freight earnings, particularly in oil shipping, which increased its contribution to the combined profit growth of listed energy companies.
Petro Rabigh Returns to Profitability
Rabigh Refining and Petrochemical Company (Petro Rabigh) recorded a significant turnaround, posting net profits of approximately SAR 6.7 billion ($1.79 billion) during the first nine months of 2026, compared with losses of SAR 3.29 billion ($877.3 million) in the corresponding period last year.
Revenue increased 113.6% to around SAR 52.03 billion ($13.88 billion), compared with SAR 24.36 billion ($6.50 billion) a year earlier.
The improvement was supported by higher operating rates at the company's industrial complex, increased sales volumes, stronger prices for refined and petrochemical products, and lower financing costs.
The year-on-year comparison was also affected by weaker production and sales during the corresponding period of 2025, when the company's operating facilities underwent a comprehensive scheduled maintenance shutdown.
Drilling Companies Face Pressure
Changes in global energy markets did not benefit every segment of the sector.
ADES Holding reported a 23% decline in net profit to approximately SAR 459.8 million ($122.6 million), compared with SAR 597.3 million ($159.3 million) during the first nine months of 2025, despite a 44% increase in revenue to around SAR 6.77 billion ($1.81 billion).
Revenue growth was driven by the expansion of international operations and contributions from new acquisitions, while earnings were affected by lower operating margins, higher expenses and the temporary suspension of several regional operations.
Arabian Drilling Company's net profit fell 90.6% to approximately SAR 6.9 million ($1.84 million), compared with SAR 73.3 million ($19.55 million) a year earlier.
Revenue declined 8.1% to approximately SAR 2.4 billion ($640 million).
Saudi Arabian Refineries Company (SARCO) also reported a 24.4% increase in net losses to approximately SAR 27.5 million ($7.33 million), compared with losses of SAR 22.1 million ($5.89 million) during the first nine months of the previous year.
The deterioration reflected impairment losses related to the market value of certain investments, alongside higher general and administrative expenses.
The Qassim 1 Independent Power Plant project (ACWA)
Third-Quarter Results
In the third quarter of 2026, the six listed energy companies recorded a 50.1% increase in combined net profits to approximately SAR 145.15 billion ($38.71 billion), compared with SAR 96.72 billion ($25.79 billion) in the same quarter last year.
The results extended the earnings growth recorded during the first nine months.
Aramco maintained its leading position, with third-quarter profits attributable to shareholders reaching approximately SAR 137.39 billion ($36.64 billion), up 41.3% year-on-year.
Bahri ranked second after its quarterly net profit jumped 890.7% to approximately SAR 5.09 billion ($1.36 billion), compared with SAR 513.4 million ($136.9 million) in the third quarter of 2025.
Petro Rabigh continued its recovery, reporting profits of approximately SAR 2.58 billion ($688 million), reversing losses of SAR 1.24 billion ($330.7 million) a year earlier.
The turnaround was supported by improved operating rates, higher sales volumes and stronger product margins.
ADES Holding, meanwhile, reported a 55.8% decline in quarterly net profit to approximately SAR 94.9 million ($25.3 million), despite a 34.8% increase in revenue, reflecting continued pressure on profitability.
Arabian Drilling returned to quarterly profitability, recording net income of approximately SAR 31.4 million ($8.37 million), compared with losses of SAR 9.4 million ($2.51 million) in the corresponding period of 2025.
The improvement was supported by higher rig utilization rates and greater operational efficiency.
Saudi Arabian Refineries Company posted a quarterly loss of approximately SAR 22.5 million ($6 million), compared with a profit of SAR 1.6 million ($427,000) in the third quarter of 2025.
The quarterly figures highlight the continuing divergence in performance across the energy sector.
While Aramco, Bahri and Petro Rabigh drove earnings growth, some drilling and investment companies continued to face pressure on profit margins and financial results, reflecting differences in business models, operating conditions and costs.
Uneven Performance and Sustainable Growth
Commenting on the sector's financial results, financial and economic expert and market analyst Dr. Suleiman Al-Humaid Al-Khaldi, a member of the Saudi Economic Association, said the performance of Saudi energy companies during the first nine months of 2026 reflected strong growth in combined profits, which increased more than 42% to approximately SAR 396.15 billion.
However, he cautioned that the headline figures concealed significant differences between companies and activities within the sector.
Speaking to Asharq Al-Awsat, Al-Khaldi explained that Saudi Aramco was the principal driver of sector earnings growth, generating approximately SAR 379 billion and accounting for 95.7% of combined profits.
This made Aramco's financial results the single most influential factor in overall sector performance, supported by higher revenue and improved operating results.
Al-Khaldi noted that Bahri recorded the most significant profit increase among the listed companies, with earnings rising approximately 587%, benefiting from stronger maritime transportation activity, particularly oil shipping, and higher freight rates.
He said the sustainability of this growth would depend on demand levels, shipping rates and operating costs, given the cyclical nature of the maritime transportation industry.
Al-Khaldi also described Petro Rabigh's return to profitability as one of the most notable developments in the sector's results.
The turnaround was driven by higher operating rates and sales volumes, improved product prices and reduced financing costs.
However, he pointed out that the comparison was also influenced by maintenance work that affected the company's results during the same period last year.
This made it important to distinguish between a recovery from a low comparison base and sustainable improvements in operating performance.
Conversely, Al-Khaldi highlighted declining profits at ADES Holding and Arabian Drilling, along with widening losses at Saudi Arabian Refineries Company.
He stressed that growth in combined sector profits did not necessarily indicate improved performance across all companies, particularly as some activities continued to face pressure from operating and financing costs and weaker profit margins.
Al-Khaldi said sustaining earnings growth in the coming period would depend on companies' ability to improve operational efficiency, control costs and translate revenue increases into actual profits.
He emphasized the importance of assessing each business segment independently rather than relying solely on aggregate growth indicators to evaluate the sector's financial performance.
Saudi Arabia Bets on Space to Strengthen Its Position in Industries of the Futurehttps://english.aawsat.com/business/5341440-saudi-arabia-bets-space-strengthen-its-position-industries-future
Saudi Arabia Bets on Space to Strengthen Its Position in Industries of the Future
Historic launch of NASA's Artemis II mission, with Saudi participation, on April 1, 2026 (Reuters)
The US-Iran war has reshaped investment priorities across the region, forcing Gulf economies to contend with its repercussions for trade and capital flows. In Saudi Arabia, efforts to diversify investment and broaden the range of targeted sectors continue, with growing attention to strategic industries and advanced technologies, including the space industry.
The Kingdom's ambitions in the sector received a further boost on November 3, when the Cabinet, chaired by Crown Prince and Prime Minister Mohammed bin Salman, approved the National Space Policy. The move aims to support the development of a national space ecosystem and advance its scientific, technological and investment activities.
The decision comes as the Communications, Space and Technology Commission (CST) projects that Saudi Arabia's space economy will grow from SAR 33 billion ($8.8 billion) in 2024 to SAR 119 billion ($31.7 billion) by 2035, representing a compound annual growth rate of 12%. The domestic space market is expected to reach SAR 21 billion ($5.6 billion).
Experts told Asharq Al-Awsat that Saudi Arabia continues to strengthen its position as a destination for high-value investment, driven by the objectives of Vision 2030, which remain the principal catalyst for investment activity even during regional and international crises.
They said turmoil in the region, including threats to shipping through the Strait of Hormuz and Bab Al-Mandab, had affected regional economies but had not halted Saudi efforts to develop strategic sectors, including space and satellite industries.
The experts noted that expanding partnerships and investment agreements during 2026 reflected growing opportunities in the sector, given the links between space technologies and several vital industries and their increasing importance to economic development and national security.
They expect Riyadh to strengthen its position in the global space industry over the coming years and called for the creation of a dedicated investment fund to support companies and projects operating in the sector.
Building a Domestic Space Industry
Engineer Frank M. Salzgeber, former Acting Vice Governor for the Space Sector at Saudi Arabia's Communications, Space and Technology Commission (CST), believes the Kingdom has the foundations needed to become a leading player in the space economy.
Speaking to Asharq Al-Awsat, he expressed strong confidence in the future of Saudi Arabia's space economy, pointing to existing demand and the opportunity for the Kingdom to assume a leadership role in the industry.
Salzgeber, an investor in New Space companies and chief executive of Altairi Space, said data from CST and SpaceTech Gulf showed that the number of organizations and companies operating in Saudi Arabia's space sector had doubled in recent years to more than 425 entities.
He noted that space data analytics had recorded the strongest growth.
According to Salzgeber, space has become closely associated with national security and sustainable development, while also emerging as one of the world's promising commercial markets.
He attributed the development of Saudi Arabia's space ecosystem to three principal institutional pillars.
The first is CST, which serves as the regulatory authority, developing regulations and policies, strengthening the ecosystem, building national capabilities and providing market data.
The second is the Saudi Space Agency, which plays a central role in enabling scientific activities and expanding international partnerships.
The third is Neo Space Group (NSG), a subsidiary of the Public Investment Fund, which leads commercial activities in the national space sector.
Salzgeber, who previously served as head of innovation and ventures at the European Space Agency, identified a major investment opportunity in addressing the gap in domestic manufacturing of complete commercial satellites.
He called for a localization target of 67.5% of the value of space-sector contracts, arguing that such a measure would help establish a domestic industrial base capable of meeting local demand and expanding into international markets.
He said Saudi small and medium-sized enterprises could benefit from offset programs associated with space and defense contracts, enabling them to supply more components and technologies to international companies.
Salzgeber expressed hope that Saudi companies would eventually manufacture space components for US defense and aerospace company Lockheed Martin, highlighting the potential for domestic manufacturers to integrate into global supply chains.
He emphasized the importance of directing investment toward hardware manufacturing rather than focusing exclusively on services and applications, arguing that developing domestic production capabilities was essential to establishing a fully integrated space industry.
He also urged major venture capital firms to expand financing for companies operating in the sector with links to the Saudi market.
Assessing the Kingdom's strengths, Salzgeber pointed to its geopolitical position, which could make it a trusted partner for a wide range of international players.
He suggested Saudi Arabia could become a new Switzerland in the space industry, supported by its young talent and private capital.
He also called for a specialized space investment fund to provide financing for startups and industrial projects, helping turn emerging opportunities into productive and commercial ventures.
A Saudi-launched mission to the International Space Station from Cape Canaveral in Florida, United States (SPA)
Space Strengthens Links Across Industries
Dr. Abdul Rahman Baashen, head of the Al-Shorouk Center for Economic Studies in Jazan, said Vision 2030 had established programs and initiatives that strengthened the Saudi economy's ability to withstand shocks and helped create a development and investment response capable of adapting to regional changes, including the consequences of the ongoing war.
Speaking to Asharq Al-Awsat, Baashen said Saudi investment priorities were increasingly focused on developing strategic industries and addressing gaps in the country's industrial and technological ecosystem.
He noted growing interest in investments supporting sustainable development, particularly artificial intelligence, technology-intensive industries and space.
Baashen said several recent agreements and partnerships had focused on the space, defense and security sectors.
He explained that the space industry was particularly important because of its connections to numerous economic and industrial activities and its role in supporting essential services and stimulating growth.
Developing the sector, he argued, could help sustain investment and commercial activity in Saudi Arabia.
Baashen attributed the continued momentum in investment to Vision 2030, which he described as the primary driver of investment even during regional and international crises.
He said current developments were creating new opportunities for initiatives and projects involving advanced technologies and space.
He stressed that the regional war had not interrupted Saudi efforts to enhance the Kingdom's investment appeal and competitiveness, noting continued foreign investor interest in emerging sectors, including space.
As evidence, he cited the shift in Saudi Arabia's net foreign direct investment from an outflow of approximately $1.7 billion in the first quarter of the year to an inflow of $4 billion in the second quarter.
He also pointed to an increase in foreign exchange reserves to $440.7 billion at the end of September, representing annual growth of 3.7%.
Billions of Riyals in Space Investment Expected Through 2029
Saudi businessman Abdullah bin Zaid Al-Meleihi, chairman of Saudi Excellence Holding Company, said the Kingdom was entering a new phase of investment in space industries, supported by rapid technological advances and Vision 2030 objectives aimed at localizing strategic industries and expanding the private sector's role.
Speaking to Asharq Al-Awsat, Al-Meleihi said changes in modern warfare, particularly the growing reliance on artificial intelligence, cybersecurity, unmanned aircraft and satellites, had helped redirect global investment and created economic and industrial opportunities for domestic investors and companies.
He added that the repercussions of the regional war had not prevented Saudi Arabia from developing strategic industries and might even have contributed to a realignment of investment priorities.
Al-Meleihi said the target of localizing more than 50% of military spending by 2030 would create substantial opportunities for investment partnerships between the public and private sectors, including in space industries and related technologies.
He noted that Saudi investors had recognized early on the importance of moving into technology and strategic industries, prompting growing interest in international partnerships focused on transferring knowledge and advanced technologies and establishing specialized manufacturing capabilities within the Kingdom.
He stressed that opportunities extended beyond factories and industrial projects to include research and development, training and the preparation of Saudi professionals.
Al-Meleihi also emphasized the importance of public-private cooperation in building an advanced industrial and technological ecosystem.
He predicted that the space industry would attract billions of riyals in investment between 2027 and 2029, supported by expanding international partnerships and rising demand for advanced technologies.
He stressed that these projections represented his own investment outlook rather than official figures for approved investments.
Al-Meleihi said Saudi Arabia possessed the economic, industrial and investment capabilities needed to become a major player in defense, security and space industries.
He argued that the Kingdom could move from consuming technology to developing, manufacturing and localizing it, strengthening its position as a regional hub for these industries.
He also noted that changes in warfare were reshaping not only military doctrines but also the direction of global capital flows.
He expects defense, security and space industries to become among Saudi Arabia's most prominent areas of strategic investment in the coming period.
Al-Meleihi said the Kingdom was entering a new economic and industrial era in which the future would favor those investing today in technology, knowledge and advanced industries.
He added that Saudi Arabia, under Vision 2030, was well positioned to strengthen its standing among countries with significant influence in these sectors, both regionally and internationally.
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