Latest news with #non-oil GDP
Asharq Al-Awsat
5 days ago
- Business
- Asharq Al-Awsat
Saudi Sovereign Fund Grows Assets 19% to $913 Billion
Saudi Arabia's Public Investment Fund (PIF) has continued to cement its role as a driving force behind the Kingdom's economic transformation, posting record growth in managed assets and strong financial results in its 2024 annual report. The figures show the fund now contributes 10% of Saudi Arabia's non-oil GDP, with managed assets reaching SAR 3.42 trillion ($913 billion) and more than $171 billion invested in priority sectors since 2021. According to the report, released Wednesday, PIF's managed assets rose 19% year-on-year to SAR 3.42 trillion by the end of 2024, generating an average annual shareholder return of 7.2% since 2017. Revenues climbed 25% over the same period. Liquidity and cash positions remained stable, with the fund maintaining a robust balance sheet. The report highlighted substantial progress in delivering on the fund's strategic investment targets, reinforcing its status as one of the largest and fastest-growing sovereign wealth funds in the world. PIF's cumulative contribution to non-oil GDP from 2021 to 2024 reached SAR 910 billion, with an expected total impact of SAR 1.2 trillion by the end of this year. PIF Governor Yasir Al-Rumayyan said 2024 marked 'a new and promising phase of exceptional performance and qualitative innovation,' characterized by the systematic integration of artificial intelligence, smart automation, and advanced digital capabilities across all operations. He noted that this shift represents not just technological advancement, but a 'transformational approach' in how PIF invests, operates, and delivers economic and social impact globally. For his part, Chief Financial Officer Yasir Alsalman reported that SAR 213 billion were directed to priority sectors in 2024 alone, bringing total investments in such sectors since 2021 to over 642 billion riyals. In turn, Acting Chief Operating Officer and Board Secretary General Maram Al-Johani said PIF maintained its long-term vision while strengthening its influence locally and internationally, continuing to lead Saudi Arabia's economic diversification and generate sustainable returns. The fund's international portfolio expanded further in 2024, targeting sustainable returns through long-term investments and strategic partnerships in key global markets. PIF's overseas investments aim to diversify assets and income streams, secure partnerships with major corporations and investors, and back advanced technologies that support Saudi Arabia's economic ambitions and shape the future global economy. PIF diversified its funding base in 2024, securing SAR 36.855 billion ($9.83 billion) in public loans and nearly SAR 26 billion ($7 billion) in private loans. The fund's stability has earned global recognition, with Moody's upgrading its credit rating from A1 to Aa3 in 2024, and Fitch affirming its A+ rating with a 'stable' outlook. Governance standards also drew praise. PIF scored 96% in the 2024 Governance, Sustainability and Resilience Index from Global SWF — a sharp improvement over 2021 — and ranked first worldwide among 200 sovereign investors, achieving 100% compliance in 2025. It also topped the global list of most valuable sovereign wealth fund brands, with a valuation exceeding SAR 4.13 billion, earning an A+ rating from Brand Finance.
Zawya
6 days ago
- Business
- Zawya
PIF reports 19% growth in assets under management, $171bln invested in priority sectors since 2021
RIYADH — The Public Investment Fund (PIF) has reported a strong performance for 2024, with assets under management (AuM) rising 19% to $913 billion and total revenue increasing by 25%, according to its newly published annual report. The results highlight PIF's expanding role in driving Saudi Arabia's economic transformation and shaping global markets. Since 2021, cumulative investments in priority sectors have exceeded $171 billion, with $56.8 billion deployed in 2024 alone. The fund's average total portfolio return has reached 7.2% annually since 2017, and its cash position remains broadly unchanged, reflecting robust liquidity. PIF's contribution to the Kingdom's non-oil GDP between 2021 and 2024 totaled $243 billion, representing 10% of the national non-oil economy. The fund has established 103 companies to date, bringing its total portfolio to 225 companies by the end of 2024, while advancing strategic sectors, localization, and innovation. Key milestones in 2024 included partnerships in sports, technology, energy, and entertainment — such as launching Alat, a technology firm focused on semiconductors and smart devices; creating the Neo Space Group to champion the satellite and space sector; and entering multi-year agreements with ATP and WTA to boost global tennis. PIF also acquired a 15% stake in Heathrow Airport and launched Adeera, a Saudi hospitality brand. Internationally, PIF continued to expand its global investment footprint, raising $16.83 billion in public and private debt while earning credit rating upgrades from Moody's and Fitch. Governance performance also reached a milestone, with PIF scoring 96% in Global SWF's 2024 GSR Scoreboard and tying for first place globally in 2025 with a score of 100%. PIF also recorded strong brand growth, with Brand Finance naming it the world's most valuable and fastest-growing sovereign wealth fund brand in 2024. © Copyright 2022 The Saudi Gazette. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
6 days ago
- Business
- Zawya
From FOMO to focus: A smarter path to industrial innovation in UAE
The United Arab Emirates' non-oil GDP grew by 4.4% in the first half of 2024, taking the country another sizeable step towards realising the goals of 'We the UAE 2031'. Manufacturing constituted 15% of non-oil GDP during the period, showing yet again that home-grown factories have a significant role to play in sustainable prosperity. But any opportunity space is, by its nature, competitive. And when seeking an edge, manufacturers are confronted by a shopping mall of technology options. Inaction is not an option, but any move made has the potential to bring a net positive or a net negative. In search of a competitive edge, but restrained by doubt over the next best investment, leaders also face limited resources. And any path they choose must come with measurable results so that ROI can be calculated and investments justified. In a growing sector, manufacturing companies must plot a course to their own sustainable growth, and smart-factory technologies that optimise operations and increase efficiency will seem like the logical way forward. Paper vs practice On paper, technology brings operational efficiency, cost savings, and many other benefits. By now, UAE manufacturers know that to prosper from a tech investment, they must define their business goals clearly. They cannot afford to succumb to the fear of missing out. By formulating each investment in the form of 'problem first, solution second', they can not only bring value to their organization but do so quickly. In Epicor's global Future of Work in Manufacturing study, we found 39% of manufacturing workers and 52% of managers considered their workplace 'very modern' compared to industry competitors. Given the age in which we live, these figures may seem surprisingly low, but they can be explained by the everyday experiences of both managers and workers outside the workplace where AI and smart hardware are part of life. For UAE manufacturing, these findings are significant because the nation is home to a relatively younger (and hence, more digital-native) population than its global peers. As of 2025, the median age here is 31.6 years compared with 38.5 in the US, 40.1 in China, 49.8 in Japan, 40.1 in the UK, and 45.5 in Germany. As UAE manufacturers look to their future technology investments, they must account for these attitudes or risk suffering a talent drain to more forward-looking competitors — a trend that may prove difficult to reverse. Inclusive plans Manufacturers must plan carefully to ensure that investments in technology represent modernisation rather than backwards steps. Plans must, of course, include budget but they must also include staff training and the integration of procured tools with legacy applications. Many benefits are available to the manufacturer who brings the whole workforce with it when it moves. Buy-in from the factory floor to the back office means input from all stakeholders. And input from all stakeholders means an increased likelihood that investments will be wisely targeted. This inclusivity is important because every business is unique. Perhaps your manufacturing firm can use GenAI exactly like your main competitor does; perhaps not. Your stakeholders will know. There is a risk that because GenAI is the newest thing, it will eclipse strategy and lead to a hasty procurement process. So, if widescale adoption were to take root in the UAE manufacturing sector, it should be tempered by the problem-first approach mentioned earlier. If GenAI makes data analytics easier and faster and leads to more efficient operations or better decision making, then the investment is worthwhile. But if it is adopted simply to keep pace with the industry with no plan for training or use cases, then positive impacts may be elusive. Turning possibility into the practical Some potentially lucrative use cases for AI are predictive maintenance, the visualization and virtual testing of process models, and the optimisation of employee work scheduling. In Epicor's global research we found 76% of manufacturing leaders see the potential for AI to identify production inefficiencies, and 51% think it will be useful in forecasting the price of raw materials. Meanwhile, automation can elevate the employee experience by boosting accuracy and reducing human workloads; and the Internet of Things can optimize factory environments and supply chains. Enterprise resource planning (ERP) platforms can harvest data from the entire manufacturing ecosystem, analyse it centrally using AI, and deliver better visibility to business leaders, leading to better decision making and higher ROI. ERP can also draw on predictive analytics to maximize ROI by demystifying the future for the C-suite. Predictive analytics can be especially powerful when provided with data from IoT devices and sensors, which allows it to assess factory floor processes and machinery. AI monitoring can boost output and reduce downtime. And finally, in a region where sustainability has become an indispensable element of business operations, the right technology investments can help enormously. Sustainability is the classic example of problem-first digitalisation. While the precise journey may vary from organisation to organisation, it is one we all must take. Reducing waste, optimising energy use, and enhancing supply-chain resilience will be crucial to the future of all UAE businesses. But beyond brand reputation and regulatory compliance, manufacturers can enjoy significant bottom-line boons. Manufacturing leaders need not necessarily be technology leaders. But with the right partners, it becomes easier to identify the right challenges and the right way to tackle them. Investments become wiser, and ROI greater. - TradeArabia News Service Copyright 2025 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
Argaam
13-07-2025
- Business
- Argaam
Jadwa Investment expects non-oil GDP to grow 4.3% in 2025
Jadwa Investment expects Saudi Arabia's real non-oil GDP to grow by 4.3% in 2025, supported by strong domestic demand, robust credit growth, and ongoing efforts to diversify the economy across various sectors. In a report, the advisory firm also projected that the Kingdom's crude oil production would rise by 5.5% to an average of 9.45 million barrels per day (bpd) in 2025, compared to an average of 9 million barrels per day in 2024. In addition, Brent crude prices are expected to average $67 per barrel in 2025, a 16% decline from the 2024 average, and $65 per barrel in 2026, citing global supply outpacing demand. Jadwa noted that oil prices remain the key source of uncertainty in its forecasts, but emphasized that Saudi Arabia is well positioned to withstand periods of oil market weakness. The research firm expects a slight uptick in inflation in the second half of 2025, with average inflation rising to 2.4%, driven by moderate increases in food prices aligned with global trends. Jadwa maintained its inflation forecast at 2.3% for 2025, followed by a slight decline to 2.1% in 2026.
