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Saudi PIF Operating Profit Doubles, Assets Hit $1.21 Trillion

The Public Investment Fund Tower at King Abdullah Financial District. (PIF)
The Public Investment Fund Tower at King Abdullah Financial District. (PIF)
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Saudi PIF Operating Profit Doubles, Assets Hit $1.21 Trillion

The Public Investment Fund Tower at King Abdullah Financial District. (PIF)
The Public Investment Fund Tower at King Abdullah Financial District. (PIF)

Saudi Arabia’s Public Investment Fund has put its 2025 financial performance under the spotlight of global markets, publishing its audited consolidated financial statements on the London Stock Exchange in a move that reinforces its role as a driver of economic transformation and a global investor across continents.

The figures revealed an exceptional year for the fund. Net profit surged 152% to $17.36 billion, or 65.1 billion riyals, while total assets rose 5% to nearly $1.21 trillion, or 4.54 trillion riyals.

The jump was not simply the result of market swings. It reflected a flexible expansion strategy that balanced investment in future sectors, such as artificial intelligence through the launch of HUMAIN, with major domestic development projects, including Riyadh Expo 2030.

It also came alongside innovative green financing tools that strengthened foreign investor confidence in the fund’s financial position and long-term sustainability.

Operational efficiency drives record profit

The consolidated financial statements showed a sharp year-on-year improvement in profitability, mainly driven by stronger earnings from associates and a 9% drop in the fund’s administrative expenses. The decline pointed to higher operating efficiency and tight spending discipline.

Operating profit climbed to $20.8 billion, or 77.9 billion riyals, from $9.2 billion, or 34.6 billion riyals, in 2024, marking growth of more than 120%.

The gains were supported by a 9% increase in total revenue to $119.73 billion, or 449 billion riyals, from 413 billion riyals a year earlier, reflecting continued portfolio growth and stronger returns.

That performance fed directly into net profit for 2025, which jumped 152% to $17.36 billion, or 65.1 billion riyals, from 25.8 billion riyals in 2024. The result was more than double the previous year’s level.

The fund also maintained a high level of cash and cash equivalents, exceeding $93.33 billion, or more than 350 billion riyals, underscoring its ability to keep executing its investment strategy.

Asset growth and 2030 ambitions

The strong results come as the fund continues to expand its asset and investment base at speed. Assets have risen from about 720 billion riyals in 2017 to 4.54 trillion riyals, or $1.21 trillion, by the end of last year. The fund is targeting 10 trillion riyals by 2030, according to the Saudi Vision 2030 annual report.

The growth aligns with the fund’s new 2026-2030 strategy, announced at the start of this year. The strategy aims to shift from building strategic sectors to integrating economic ecosystems and accelerating growth. It places the private sector as a partner in creating value, not merely an implementer of projects, in line with the third phase of Vision 2030 and the push for deeper long-term investment partnerships.

PIF Governor Yasir Al-Rumayyan said the new strategy marked “a natural progression” from a phase of growth and expansion to a new phase focused on sustainable value, greater impact and higher investment efficiency.

He said the fund would transform the 13 strategic sectors in earlier plans into six integrated economic ecosystems built around companies with clear objectives. The focus would be on strengthening financial returns, maintaining investment efficiency, and continuously assessing the performance of investments and projects.

Under this vision, the fund’s investments are spread across three main portfolios: the Vision Portfolio, the Strategic Investments Portfolio and the Financial Investments Portfolio.

Backing future sectors

In future sectors, the fund moved in 2025 to accelerate artificial intelligence and advanced technologies through the launch of HUMAIN. The company invests across the AI value chain, including infrastructure, data centers, cloud capabilities, advanced models and applications.

To deepen that push, the fund signed a non-binding term sheet with Saudi Aramco under which Aramco would acquire a significant minority stake in HUMAIN, while PIF would retain the majority stake. The aim is to combine key assets and expand the company’s technical capabilities.

In future mobility and sustainability, Lucid Group, majority-owned by the fund, reported a 55% year-on-year rise in vehicle deliveries to 15,841 vehicles in 2025. The increase coincided with the launch of the Driving Force program in partnership with Formula E to expand science, technology, engineering and mathematics education, with a target of reaching more than 50,000 students in Saudi Arabia, the United States and the United Kingdom by the end of 2025.

Tourism and entertainment gain pace

On the domestic development front, the fund accelerated support for major local development and tourism projects while strengthening the wider economic ecosystem.

It launched Riyadh Expo 2030 Company to develop and operate the facilities of the first World Expo to be hosted by Saudi Arabia and to invest in those facilities over the long term. The project is expected to support sustainable tourism, create new opportunities for the private sector and boost its contribution to gross domestic product during construction, operation and beyond.

The year also brought major milestones in entertainment and luxury tourism. Qiddiya City announced the opening of the first Six Flags theme park outside North America, creating a distinctive destination in the kingdom. Red Sea Global also announced the official opening of AMAALA, its luxury coastal destination.

Alongside these major construction and development projects, the financial statements showed that the fund’s investment properties rose to $21.46 billion from $17.46 billion in 2024.

Green financing enters a new phase

The fund’s investment securities, valued at $576.4 billion, show a disciplined approach to diversifying risk by geography and currency to secure sustainable returns.

The Middle East and North Africa remained the largest exposure at $344.2 billion, followed by North American markets at $145.9 billion, European markets at $44.7 billion and Asian markets at $41.6 billion.

To support capital markets, the fund signed memorandums of understanding with global financial institutions, including Goldman Sachs Asset Management and Franklin Templeton, to develop innovative investment strategies focused on the region.

In financing, the fund marked a new milestone with its first euro-denominated green bond issue, worth 1.65 billion euros. Demand was strong, with orders exceeding the amount offered by more than six times. The fund also launched its first commercial paper program as a short-term financing channel.

Private sector and local content

As part of its commitment to the domestic economy, the fund held the third edition of the PIF Private Sector Forum, bringing together portfolio companies and government entities to review opportunities in major projects.

The fund’s initiatives also continued to support localization, develop local suppliers and increase the private sector’s share in emerging projects. The aim is to ensure that the fund’s historic financial growth feeds directly into the structure of Saudi Arabia’s broader, more sustainable economy in the years ahead.

 

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Business

ECB Says Will Have to Act Again if 2nd-round Inflation Effects Appear

European Central Bank (ECB) President Christine Lagarde (CL) and Gabriel Makhlouf (CR), Governor of the Central Bank of Ireland during the family photo at the Informal meeting of EU Finance Ministers in Dublin Castle, Dublin, Ireland 18 September 2026. EPA/BRYAN MEADE
European Central Bank (ECB) President Christine Lagarde (CL) and Gabriel Makhlouf (CR), Governor of the Central Bank of Ireland during the family photo at the Informal meeting of EU Finance Ministers in Dublin Castle, Dublin, Ireland 18 September 2026. EPA/BRYAN MEADE
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ECB Says Will Have to Act Again if 2nd-round Inflation Effects Appear

European Central Bank (ECB) President Christine Lagarde (CL) and Gabriel Makhlouf (CR), Governor of the Central Bank of Ireland during the family photo at the Informal meeting of EU Finance Ministers in Dublin Castle, Dublin, Ireland 18 September 2026. EPA/BRYAN MEADE
European Central Bank (ECB) President Christine Lagarde (CL) and Gabriel Makhlouf (CR), Governor of the Central Bank of Ireland during the family photo at the Informal meeting of EU Finance Ministers in Dublin Castle, Dublin, Ireland 18 September 2026. EPA/BRYAN MEADE

European Central Bank will have to raise interest rates again if high energy prices feed through to other areas but so far there is no sign of such second-round inflation effects, ECB policymaker ⁠Gabriel Makhlouf said on ⁠Wednesday.

"Although inflation is above our target, we're not seeing the sorts of second round effects ⁠that start feeding through to prices," Makhlouf, Ireland's central bank chief, told national broadcaster RTE in an interview.

"If that happens (energy prices remain high and feed into other areas), we will have to take ⁠action ⁠again to meet our target."

Makhlouf cautioned earlier this month following the ECB's second interest rate hike this year that raising interest rates "a great deal more" risked damaging economic growth.

Also Wednesday, the ECB said the European Union could close a third of its productivity gap with the United States if it had as many large companies, adding its voice to calls for reforms that make it easier for businesses to scale up.

European policymakers are trying to tackle the EU's economic underperformance relative to the United States, which is home to many of the world's largest companies and is leading the race to develop artificial intelligence.

EU workers produce ⁠20% less output ⁠per hour than their US counterparts, according to academic studies. They were almost on an even keel in 1995.

ECB staff found that if Europe had the same distribution of large and small firms as the United States – without changing how productive each ⁠type of company is – the productivity gap would shrink by roughly one-third.

Large firms are significantly more productive than smaller ones. Companies with at least 250 employees generate an average of €86,800 in value added per worker annually, while firms with fewer than 10 employees produce less than half that amount.

The ECB said Europe's weaker productivity performance also reflects lower innovation, fragmented regulation and less developed capital markets, all of which ⁠make it ⁠harder for companies to grow and compete internationally.

The central bank backed the proposed "EU Inc" framework, an EU-wide corporate law regime aimed at reducing barriers to cross-border business activity.

Modelled loosely on Delaware's corporate framework in the United States, EU Inc would create a single legal structure operating across the bloc, bypassing a patchwork of 27 national company law systems and dozens of corporate forms.

"EU Inc. has the potential to support the Single Market, by strengthening competition, innovation and productivity growth," the ECB said.

Business

Surveys: Europe's Economy Surprisingly Resilient amid War-Driven Energy Shock

A view of the European Parliament in Brussels, Belgium, 23 September 2026. EPA/OLIVIER HOSLET
A view of the European Parliament in Brussels, Belgium, 23 September 2026. EPA/OLIVIER HOSLET
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Surveys: Europe's Economy Surprisingly Resilient amid War-Driven Energy Shock

A view of the European Parliament in Brussels, Belgium, 23 September 2026. EPA/OLIVIER HOSLET
A view of the European Parliament in Brussels, Belgium, 23 September 2026. EPA/OLIVIER HOSLET

Europe's economy is showing unexpected signs of health even as conflicts in the Middle East and Ukraine drive up energy costs for firms and households, key business surveys showed on Wednesday.

Business activity across the euro zone accelerated in September at its fastest rate in over three years, S&P Global said, with solid growth registered across both the manufacturing and service sectors.

The S&P Global Flash Euro Zone Composite PMI Output Index — where readings above 50.0 signal an expansion in activity — jumped to 53.1 in September from August's 52.0, defying expectations in a Reuters poll ⁠for a dip ⁠to 51.7. The highest forecast in the poll was for 52.6.

"All in all, today’s PMI readings are almost too good to be true," said Carsten Brzeski at ING.

"A euro zone economy that remains completely unharmed by an energy price shock and supply chain disruptions is a welcome surprise. Let’s hope it doesn’t turn out to be a mirage."

S&P said the latest rise in output was broad based across geographies covered by its data.

Business activity in Germany, Europe's largest ⁠economy, expanded solidly in September despite firms facing increased inflationary pressures while in France it grew at its fastest pace in just over two years, driven by a rebound in services demand.

But in Britain, outside the European Union, growth cooled this month as inflation pressure built, its PMI showed, an awkward backdrop for finance minister John Healey ahead of his first budget next month.

Overall new orders in the currency union surged at their fastest pace in over four years supported by a further rise in exports — which include intra-euro zone trade.

The bloc's services PMI bounced to its highest in nearly a year and was well ahead of estimates for a fall, while the manufacturing index held steady.

A gauge of output - ⁠which feeds into ⁠the composite PMI - nudged higher.

To meet the rise in demand firms took on more staff but faced a jump in input costs due to elevated energy prices stemming from the US war with Iran. They were able to pass some of this on to customers.

"September’s big improvement in the euro zone’s composite PMI supports our view that despite the weakness in the official activity data in July, GDP will increase in Q3," said Jack Allen-Reynolds at Capital Economics. "The output price PMIs rose too, but there is still no sign of 'second-round' effects on wages."

Earlier this month the European Central Bank raised interest rates for the second time this year to quell an energy-driven inflation rise and warned price pressures could prove lasting.

Markets are pricing three more ECB rate hikes by the end of June 2027.

"Today's PMI readings make it more difficult for even the ECB's most dovish policymakers to rule out another rate hike," said ING's Brzeski.

Business

What Do Saudi SMEs Need to Grow?

What Do Saudi SMEs Need to Grow?
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What Do Saudi SMEs Need to Grow?

What Do Saudi SMEs Need to Grow?

Financing alone is no longer enough to propel Saudi Arabia’s small and medium-sized enterprises into their next phase of growth, as their needs increasingly extend to accessing markets and contracts, securing operating liquidity, reducing business costs and boosting productivity, competitiveness and their ability to expand.

Financing available to the sector has nevertheless continued to grow. Cumulative credit facilities extended to micro, small and medium-sized enterprises reached about SAR 467 billion ($124.5 billion) by the end of 2025, up 33% year on year.

At the same time, Saudi Arabia’s National Strategy for Entrepreneurship and SMEs is seeking to address challenges beyond the financing gap by improving access to markets, procurement and supply chains, reducing the cost of doing business and strengthening companies’ capacity for sustainable growth.

In the latest financing initiative, the Small and Medium Enterprises General Authority, known as Monsha’at, signed a cooperation agreement with STC Bank in September 2026 for a financing portfolio of up to SAR 5 billion ($1.33 billion) for micro, small and medium-sized enterprises.

The portfolio includes short-, medium- and long-term facilities covering working capital, operating needs, purchases of assets and equipment, and financing for contracts, projects and supply chains.

Businesses also require more than long-term financing. The Social Development Bank’s Working Capital product offers financing ranging from SAR 150,000 ($40,000) to SAR 10 million ($2.67 million), with repayment periods of up to 12 months, to cover day-to-day operating costs and strengthen cash-flow management.

The bank distinguishes between working-capital financing for operating costs and capital-expansion financing for assets and expansion.

From financing to growth

Rayan bin Ibrahim Alfayez, Monsha’at’s deputy governor for enterprise services, said the 13 initiatives under the National Strategy for Entrepreneurship and SMEs are designed to directly address priority challenges facing business growth and create a more efficient environment that supports expansion and sustainability while strengthening competitiveness in the coming period.

Alfayez explained that one initiative aimed at expanding opportunities for businesses focuses on empowering SMEs and startups in industrial cities and special economic zones. It seeks to help them capitalize on opportunities available in those areas and provide support and incentives suited to the nature of their businesses, supporting their growth and strengthening their presence in industrial and economic activities and value chains.

He added that the strategy also includes an initiative to increase SMEs’ share of procurement by large companies, broadening their access to opportunities and contracts, strengthening their participation in supply chains and helping build sustainable commercial relationships that support business growth and expansion.

Alfayez noted that another initiative aimed at reducing the cost of doing business addresses one of the challenges affecting enterprise growth by examining fees and requirements in coordination with the relevant authorities and developing mechanisms to support fees based on carefully considered criteria. The initiative is intended to ease the financial burdens associated with doing business and create a more favorable environment for companies’ growth and sustainability.

He said the initiatives work together to address a range of factors linked to business growth, from the operating environment to opportunities, markets and value chains, strengthening SMEs’ ability to grow and expand while increasing their competitiveness and contribution to the national economy.

Markets after financing

Financial and economic adviser Hussein Al-Attas told Asharq Al-Awsat that the increase in financing directed toward SMEs reflected clear progress in Saudi Arabia’s financing ecosystem, but the challenge was no longer financing alone. Rather, it was an enterprise’s ability to turn that financing into sustainable growth.

Al-Attas explained that an enterprise needs three interconnected elements: appropriate financing, access to markets, and operational and competitive capacity.

He said a company may secure financing, but in the next stage it needs contracts and sales opportunities that allow it to increase revenue, alongside managerial and technological development to boost productivity and the ability to manage cash flows and expand without allowing growth to become a financial burden.

Al-Attas added that access to markets and contracts represents the link most closely associated with an enterprise’s transition from survival to growth. Financing gives a business the capacity to act, while contracts and markets turn that capacity into revenue and cash flow.

He further stated that greater SME participation in government procurement and the supply chains of large companies, along with opening export channels, could have a direct impact on their ability to expand, alongside efforts to reduce the cost of doing business and raise productivity.

The next phase requires moving from the concept of “financing the enterprise” to “financing the enterprise’s growth,” he underlined, meaning that financing should be linked to markets, contracts, technology, productivity and expansion.

Strategy broadens its scope

The focus on markets forms part of the wider National Strategy for Entrepreneurship and SMEs, which includes 13 initiatives addressing sector challenges in access to markets and opportunities, financing, the business environment, innovation, data and expansion.

The strategy also aims to raise SMEs’ contribution to gross domestic product to 35% by 2030 and create more than 500,000 direct and indirect jobs.

Some initiatives seek to turn market access from a broad objective into direct contracting opportunities by qualifying enterprises and connecting them with the supply chains of large companies and projects.

This approach is reflected in Monsha’at’s Jadeer service, which aims to improve businesses’ readiness, qualify them to enter supply chains and enable them to benefit from procurement opportunities.

The equation for SME growth therefore does not stop at increasing available financing. It also depends on businesses’ ability to use that financing first to fund operations, then gain access to demand and contracts, improve productivity and reduce costs before moving into expansion and investment.

This reflects a shift from addressing the financing gap to addressing the growth gap: liquidity gives an enterprise the ability to continue operating and move forward, while access to markets and operational efficiency determine its ability to turn financing into revenue and sustainable growth.