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PIF Provides Private Sector with $25.6 Bn Investment Opportunities

PIF Governor Yasser al-Rumayyan during his opening speech at the Private Sector Forum (Asharq Al-Awsat)
PIF Governor Yasser al-Rumayyan during his opening speech at the Private Sector Forum (Asharq Al-Awsat)
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PIF Provides Private Sector with $25.6 Bn Investment Opportunities

PIF Governor Yasser al-Rumayyan during his opening speech at the Private Sector Forum (Asharq Al-Awsat)
PIF Governor Yasser al-Rumayyan during his opening speech at the Private Sector Forum (Asharq Al-Awsat)

The value of private sector investments in portfolio companies and projects affiliated with the Public Investment Fund (PIF) amounted to $25.6 billion as of Q3 2023, announced Governor Yasser al-Rumayyan.
Rumayyan was speaking at the second edition of the PIF Private Sector Forum, which began on Tuesday at the King Abdulaziz International Convention Center in Riyadh, aiming to strengthen partnerships and showcase opportunities for local cooperation in strategic sectors.
He stressed the importance of the Forum and the opportunities it provides to enhance cooperation with the private sector in achieving PIF strategic objectives.
He added that PIF continues to work as an engine for economic transformation in Saudi Arabia through the development of strategic sectors and the involvement of the private sector through initiatives that enhance its role as an investor, partner, and supplier.
He pointed to the role of the Public Investment Fund in supporting Vision 2030 goals, which aims to raise the private sector's contribution to GDP to 65%.
PIF has provided significant investment opportunities, and the value of private sector investments in portfolio companies and projects affiliated with PIF amounted to $25.6 billion as of the third quarter of 2023.
Meanwhile, the Head of the National Development Division at PIF, Jerry Todd, stated that achieving prosperity in the private sector is one of the essential goals of Vision 2030 and a key enabler for the Kingdom's economic transformation.
Todd stressed that PIF and its portfolio companies continue their commitment to support and enhance the private sector's growth.
In the first session, entitled "The Role of the Private Sector in Realizing Vision 2030," a panel of ministers discussed the importance of partnering with the private sector as an investor, operating partner, and supplier.
- Reaching 1Mn visitors
Saudi Minister of Tourism Ahmed al-Khateeb revealed that the sector in the Kingdom achieved the goal of 100 million tourists during 2023, with 77 million local visitors and 27 million foreign tourists, who spent $26.6 billion.
Khateeb announced that the new strategy of Crown Prince and Prime Minister Mohammed bin Salman for Vision 2030 targets attracting 150 million tourists, including 80 million from within the Kingdom and 70 million from abroad.
He explained that the state committed to funding training programs, as more than 100,000 young men and women were trained annually, including 15,000 who joined the best global institutes to enter the tourism sector.
He said the Tourism Development Fund has financed over 50 projects worth SR35 billion since its establishment.
- National Academy of Vehicles
In the same dialogue session, Minister of Industry and Mineral Resources Bandar al-Khorayef launched the first National Academy of Vehicles and Cars to develop capabilities in the electric vehicles industry.
Khorayef also announced the establishment of a new Automotive Manufacturers Association to boost the growth of the industrial sector.
Through the Association of Automotive Manufacturers and National Supply Chains, the Ministry also aims to raise awareness among local communities about the automotive industry sector and build human capabilities in manufacturing and maintaining cars with a high-tech ecosystem.
The Minister asserted that the Association and the Academy would help increase the contribution of significant projects in maximizing the benefit of local content and increasing imports.
From 2020 to 2022, the Kingdom's imports saw a 38 percent increase, while imports of products listed as mandatory during the same period were approximately 15 percent.
Moreover, the number of factories producing mandatory list products has reached 1,437 in three years.
Khorayef indicated that investments would accelerate growth by applying contemporary technologies and providing attractive job prospects, suggesting that the Kingdom will eventually become a technology exporter.
He referred to the Fund's role in launching the automobile industry in Saudi Arabia and bringing a larger number of international companies into the industry and its associated supply chains.
- Shipbuilding industry
For his part, Minister of Investment Khalid al-Falih stated that the private sector is the main focus of economic diversification, which is the main focus of Vision 2030 executive and strategic programs.
Falih added during his participation in the panel that the economy is expected to grow from $693 billion to $1.7 trillion, equivalent to four times the private sector's contribution.
The Kingdom plans to launch the "Investor Confidence Index," which measures investor confidence levels biannually to provide insights into challenges and requirements for the private sector to grow, said Falih.
He also highlighted the Kingdom's stable legislative, regulatory, and legal environment, which fosters favorable and sustainable private sector development.
The Minister added that the world's shipbuilding industry will be in China, South Korea, Saudi Arabia, and Russia in the coming decades.
He described the project as "pivotal," saying it is led by Crown Prince Mohammed bin Salman to build an integrated industry.
- Financing Contractors
The Public Investment Fund, in partnership with the National Infrastructure Fund, launched the "Contractor Financing Program," aimed at mitigating risks in construction sector investments. It also seeks to strengthen the construction sector, promote a more integrated and transparent construction ecosystem, and enhance project structures.
Meanwhile, Emir of Aseer Prince Turki bin Talal bin Abdulaziz unveiled at the Forum the operations of Asser Investment Company to transform the region into the number one tourist destination in the Kingdom.
Furthermore, the General Real Estate Authority signed a memorandum of understanding (MoU) with the Public Investment Fund, aiming to empower the real estate market in the Kingdom.
The MoU enhances the role of technology and data, talent development, and regulatory policies in a way that contributes to developing the sector in the country.
The MoU includes enhancing technology and innovation by enabling four main centers that seek to position the Kingdom as a center for real estate technology.
- Local content
The first day of the Forum witnessed the presentation of the Musahama Award for the private sector, where five national companies were selected for their positive contribution to local content in their work with PIF portfolio companies, including al-Ayuni Investment and Contracting Company, Alfanar Group, Cisco, Ericsson, and Riyadh Cables Group Company.
Last year, the Public Investment Fund launched the Private Sector Forum as a comprehensive site for private sector companies to deal with the Fund and its portfolio companies in priority sectors.
The platform provided over 200 opportunities last year, with a value exceeding $5.3 billion.
The Fund established the National Development Division to enhance the participation of the private sector in its projects and portfolio companies.
Since 2017, the Fund has established 93 companies and created more than 644,000 direct and indirect jobs in various promising strategic sectors.
The Forum is the largest event of its kind for the private sector in the Kingdom and is attended by more than 8,000 participants.
The first day's sessions witnessed the presence of several ministers, senior officials, government agencies, and 80 representatives of the Fund's portfolio companies, with more than 100 pavilions.

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Business

Pakistan’s Finance Minister to Asharq Al-Awsat: We Draw Inspiration from Saudi Arabia

The Pakistani Finance Minister during his meeting with Saudi Minister of Economy and Planning Faisal Alibrahim on the sidelines of the AlUla Conference (SPA)
The Pakistani Finance Minister during his meeting with Saudi Minister of Economy and Planning Faisal Alibrahim on the sidelines of the AlUla Conference (SPA)
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Pakistan’s Finance Minister to Asharq Al-Awsat: We Draw Inspiration from Saudi Arabia

The Pakistani Finance Minister during his meeting with Saudi Minister of Economy and Planning Faisal Alibrahim on the sidelines of the AlUla Conference (SPA)
The Pakistani Finance Minister during his meeting with Saudi Minister of Economy and Planning Faisal Alibrahim on the sidelines of the AlUla Conference (SPA)

Pakistani Finance Minister Muhammad Aurangzeb discussed the future of his country, which has frequently experienced a boom-and-bust cycle, saying Pakistan has relied on International Monetary Fund (IMF) programs due to the absence of structural reforms.

In an interview with Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Aurangzeb acknowledged that Pakistan has relied on IMF programs 24 times not as a coincidence, but rather as a result of the absence of structural reforms and follow-up.

He stressed the government has decided to "double its efforts" to stay on the reform path, no matter the challenges, affirming that Islamabad not only has a reform roadmap, but also draws inspiration from "Saudi Vision 2030" as a unique model of discipline and turning plans into reality.

Revolution of Numbers

Aurangzeb reviewed the dramatic transformation in macroeconomic indicators. After foreign exchange reserves covered only two weeks of imports, current policies have succeeded in raising them to two and a half months.

He also pointed out to the government's success in curbing inflation, which has fallen from a peak of 38 percent to 10.5 percent, while reducing the fiscal deficit to 5 percent after being around 8 percent.

Aurangzeb commented on the "financial stability" principle put forward by his Saudi counterpart, Mohammed Aljadaan, considering it the cornerstone that enabled Pakistan to regain its lost fiscal space.

He explained that the success in achieving primary surpluses and reducing the deficit was not merely academic figures, but rather transformed into solid "financial buffers" that saved the country.

The minister cited the vast difference in dealing with disasters. While Islamabad had to launch an urgent international appeal for assistance during the 2022 floods, the "fiscal space" and buffers it recently built enabled it to deal with wider climate disasters by relying on its own resources, without having to search "haphazardly" for urgent external aid, proving that macroeconomic stability is the first shield to protect economic sovereignty.

Privatization and Breaking the Stalemate of State-Owned Enterprises

Aurangzeb affirmed that the Pakistani Prime Minister adopts a clear vision that "the private sector is what leads the state."

He revealed the handover of 24 government institutions to the privatization committee, noting that the successful privatization of Pakistan International Airlines in December provided a "momentum" for the privatization of other firms.

Aurangzeb also revealed radical reforms in the tax system to raise it from 10 percent to 12 percent of GDP, with the adoption of a customs tariff system that reduces local protection to make Pakistani industry more competitive globally, in parallel with reducing the size of the federal government.

Partnership with Riyadh

As for the relationship with Saudi Arabia, Aurangzeb outlined the features of a historic transformation, stressing that Pakistan wants to move from "aid and loans" to "trade and investment."

He expressed his great admiration for "Vision 2030," not only as an ambition, but as a model that achieved its targets ahead of schedule.

He revealed a formal Pakistani request to benefit from Saudi "technical knowledge and administrative expertise" in implementing economic transformations, stressing that his country's need for this executive discipline and the Kingdom's ability to manage major transformations is no less important than the need for direct financing, to ensure the building of a resilient economy led by exports, not debts.

Business

Oil Drops 1% as US, Iran Pledge to Continue Talks

The sun rises behind the Tishrin oil field in the eastern Hasakah countryside, northeastern Syria (AP)
The sun rises behind the Tishrin oil field in the eastern Hasakah countryside, northeastern Syria (AP)
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Oil Drops 1% as US, Iran Pledge to Continue Talks

The sun rises behind the Tishrin oil field in the eastern Hasakah countryside, northeastern Syria (AP)
The sun rises behind the Tishrin oil field in the eastern Hasakah countryside, northeastern Syria (AP)

Oil prices fell 1% on Monday as immediate fears of a conflict in the Middle East eased after the US and Iran pledged to continue talks about Tehran's nuclear program over the weekend, calming investors anxious about supply disruptions.

Brent crude futures fell 67 cents, or 1%, to $67.38 a barrel on Monday by 0444 GMT, while US West Texas Intermediate crude was at $62.94 a barrel, down 61 cents, or 1%.

"With more talks on the horizon the immediate ‌fear of supply disruptions ‌in the Middle East has eased ‌quite ⁠a bit," IG ‌market analyst Tony Sycamore said.

Iran and the US pledged to continue the indirect nuclear talks following what both sides described as positive discussions on Friday in Oman despite differences. That allayed fears that failure to reach a deal might nudge the Middle East closer to war, as the US has positioned more military forces in the area.

Investors are also worried about possible disruptions to supply ⁠from Iran and other regional producers as exports equal to about a fifth of the world's ‌total oil consumption pass through the Strait of ‍Hormuz between Oman and Iran.

Both ‍benchmarks fell more than 2% last week on the easing tensions, their ‍first decline in seven weeks.

However, Iran's foreign minister said on Saturday Tehran will strike US bases in the Middle East if it is attacked by US forces, showing the threat of conflict is still alive.

"Volatility remains elevated as conflicting rhetoric persists. Any negative headlines could quickly reignite risk premiums in oil prices this week," said Priyanka Sachdeva, senior market analyst at ⁠Phillip Nova.

Investors are also continuing to grapple with efforts to curb Russian income from its oil exports for its war in Ukraine. The European Commission on Friday proposed a sweeping ban on any services that support Russia's seaborne crude oil exports.

Refiners in India, once the biggest buyer of Russia's seaborne crude, are avoiding purchases for delivery in April and are expected to stay away from such trades for longer, refining and trade sources said, which could help New Delhi seal a trade pact with Washington.

"Oil markets will remain sensitive to how broadly this pivot away from Russian crude unfolds, whether ‌India’s reduced purchases persist beyond April, and how quickly alternative flows can be brought online," Sachdeva said.

Business

Indian Refiners Avoid Russian Oil in Push for US Trade Deal

An employee walks inside the premises of an oil refinery of Essar Oil in Vadinar in the western state of Gujarat, India, October 4, 2016. REUTERS/Amit Dave/File Photo
An employee walks inside the premises of an oil refinery of Essar Oil in Vadinar in the western state of Gujarat, India, October 4, 2016. REUTERS/Amit Dave/File Photo
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Indian Refiners Avoid Russian Oil in Push for US Trade Deal

An employee walks inside the premises of an oil refinery of Essar Oil in Vadinar in the western state of Gujarat, India, October 4, 2016. REUTERS/Amit Dave/File Photo
An employee walks inside the premises of an oil refinery of Essar Oil in Vadinar in the western state of Gujarat, India, October 4, 2016. REUTERS/Amit Dave/File Photo

Indian refiners are avoiding Russian oil purchases for delivery in April and are expected to stay away from such trades for longer, refining and trade sources said, a move that could help New Delhi seal a trade pact with Washington, according to Reuters.

The US and India moved closer to a trade pact on Friday, announcing a framework for a deal they hope to conclude by March that would lower tariffs and deepen economic cooperation.

Indian Oil, Bharat Petroleum and Reliance Industries are not accepting offers from traders for Russian oil loading in March and April, said a trader who approached the refiners.

These refiners, however, had already scheduled some deliveries of Russian oil in March, refining sources said. Most other refiners have stopped buying Russian crude.

A foreign ministry spokesperson said: “Diversifying our energy sourcing in keeping with objective market conditions and evolving international dynamics is at the core of our strategy” to ensure energy security for the world's most-populous nation.

Although a US-India statement on the trade framework did not mention Russian oil, President Donald Trump rescinded his 25% tariffs on Indian goods, imposed over Russian oil purchases, because, he said, New Delhi had “committed to stop directly or indirectly” importing Russian oil.

New Delhi has not announced plans to halt Russian oil imports.

India became the top buyer of discounted Russian seaborne crude after Russia invaded Ukraine in 2022, spurring a backlash from Western nations that had targeted Russia's energy sector with sanctions aimed at curtailing Moscow's revenue and making it harder to fund the war.

One regular Indian buyer is Russia-backed private refiner Nayara, which relies solely on Russian oil for its 400,000-barrel-per-day refinery. Sources said Nayara may be allowed to keep buying Russian oil because other crude sellers pulled back after the European Union sanctioned the refiner in July.

Nayara also does not plan to import Russian crude in April due to a month-long refinery maintenance shutdown, a source familiar with its operations said.

Nayara did not respond to an email seeking comment.

Indian refiners may change their plan and place orders for Russian oil only if advised by the government, sources said.

Trump's order said US officials would monitor and recommend reinstating the tariffs if India resumed oil procurement from Russia.

Sources said last month that India was preparing to cut Russian oil imports below 1 million bpd by March, with volumes eventually falling to 500,000–600,000 bpd, compared with an average 1.7 million bpd last year. India's Russian oil imports topped 2 million bpd in mid-2025.

The intake of Russian oil by India, the world's third-biggest oil consumer and importer, declined to its lowest level in two years in December, data from trade and industry sources show.