Latest news with #PublicInvestmentFund
Arab News
a day ago
- Business
- Arab News
PIF embraces ‘precision finance' with diversified debt strategy, says Global SWF
RIYADH: Saudi Arabia's Public Investment Fund is embracing a calibrated, multi-instrument approach to debt issuance described by Global SWF as a model of 'precision finance.' According to the research firm, the purpose — following the issuance of the commercial paper program in June — is to align PIF's funding tools with investment timelines, liquidity needs, and investor targeting, while reinforcing financial discipline across its expanding portfolio. In its report, Global SWF noted that PIF is moving away from a singular focus on long-term mega-bond issuances and toward a more agile debt framework that includes commercial paper, sukuk, green bonds, and multi-tranche conventional bonds. This strategy is designed not just to raise capital, but to do so with precision, which is matching maturities to project lifecycles and diversifying funding sources across global markets. Global SWF highlighted that PIF's latest move, completes a full-spectrum debt portfolio that now includes ultra-short to ultra-long maturity instruments. The commercial paper, issued in US dollar and euro denominations via offshore special-purpose vehicles, secured the highest short-term credit ratings available: Prime-1 from Moody's and F1+ from Fitch. These ratings reflect exceptional credit quality and grant PIF access to deep liquidity pools among institutional investors such as money market funds. The commercial paper program is a critical addition to a borrowing strategy that also includes a $3 billion 100-year green bond issued in October 2022, a $5.5 billion green bond in February 2023, a $3.5 billion sukuk in October 2023, and a series of multi-tranche bonds and sukuk issued through early 2025. With each offering, PIF has tailored tenor, currency, and structure to match specific financial and investor objectives. The evolution of PIF's financial strategy is closely tied to its broader transformation under Vision 2030. Since 2016, the fund has grown its assets under management from $160 billion to $941.3 billion, according to the latest Vision 2030 Annual Report. It has now increased its 2030 AUM target to $2.67 trillion, reflecting its expanded mandate and rising international profile. PIF's investment strategy is balanced between domestic development and global positioning. About 40 percent of its assets are allocated to Saudi-based companies and projects, while the remaining 60 percent target international sectors such as technology, logistics, mining, and tourism. According to the Vision 2030 report, PIF's initiatives have helped create 1.1 million jobs, attracted over $37 billion in private capital, and grown the number of PIF-established companies from 45 in 2021 to 93 in 2024. A strategic departure from Gulf norms While other sovereign wealth funds such as Norway's NBIM remain entirely debt-free, and Singapore's Temasek or China Investment Corporation borrow sparingly, PIF has opted for a hybrid model, one that combines government equity injections with strategic use of debt instruments. According to Global SWF, this is not a matter of opportunistic borrowing. Rather, PIF is practicing deliberate asset-liability matching which focuses on issuing long-dated bonds to support giga-projects like NEOM or The Line, while using short-term debt for working capital needs and market-timed investments. Sukuk offerings help tap into regional Islamic finance liquidity, and green bonds target environmental, social, and governance-focused global capital. This differentiated approach allows PIF to broaden its investor base while keeping funding costs aligned with the nature and duration of its projects. Why ratings matter The fund's credibility is bolstered by strong long-term credit ratings: Aa3 from Moody's and A+ from Fitch. This has allowed it to secure favorable terms on successive bond offerings and confirmed that PIF is regarded as an exceptionally low-risk short-term borrower, giving it seamless access to institutional liquidity globally. Global SWF emphasized that the ratings, combined with diverse issuance formats, position PIF among a small group of sovereign wealth funds with the internal capability to manage complex, multi-layered debt programs. Saudi Arabia is currently navigating a tighter fiscal environment, with a projected 2.3 percent budget deficit in 2025 and a more disciplined approach to public spending. In this context, PIF's access to capital markets is more than just financial, according to Global SWF, it serves as a strategic bridge that enables ongoing project execution without placing undue pressure on state reserves. The firm noted that the fund's recent bond and sukuk calendar illustrates a sequenced and diversified funding plan, rather than reliance on a single issuance type. This is especially important as global interest rates remain volatile and investors increasingly scrutinize sovereign debt sustainability. Rather than treating debt as a one-off tool, the fund is deploying it systematically, by tenor, purpose, and investor group, to support a $2.6 trillion vision for economic diversification and global investment leadership. As the Kingdom approaches the final stretch of Vision 2030 implementation, PIF's capital strategy offers a case study in how sovereign wealth funds can combine financial discipline, market sophistication, and national ambition under a unified financing framework.
CNA
a day ago
- Sport
- CNA
Inzaghi proud as Al-Hilal join 'the best' in Club World Cup knockout stage
Saudi Arabia's Al-Hilal became the only Asian side to reach the Club World Cup's knockout stages with a 2-0 win over Pachuca on Thursday, finishing their Group H campaign unbeaten and setting up a round-of-16 meeting with Manchester City. Al-Hilal showed they could compete with the best teams in the world when they held Real Madrid and Red Bull Salzburg to draws in their first two games under new coach Simone Inzaghi. They have conceded just one goal in their three matches, sharing the best defensive record of the group stage with Paris St Germain and Monterrey. Al-Hilal, majority owned by Saudi Arabia's Public Investment Fund, have signed a string of world-class players over the last two years including Neymar, Malcom, Ruben Neves, Marcos Leonardo and Aleksandar Mitrovic. Although Neymar has left the club and Mitrovic remains sidelined with a calf injury, the depth of the squad has allowed Al-Hilal to weather the pressure of the big stage. KEY QUOTES Al-Hilal coach Simone Inzaghi: "Our goal was to achieve (being in) the group of the best teams in the world. "It was not an easy task, but the team was well united. It fought during the three games for a great objective ... we were not coming here just to have fun, we were coming here to play a World Cup and we wanted to reach this stage. "Now we'll have to play against Manchester City ... it's one of the greatest teams in the world. These are the games where you can improve and you can mature as a team, so I'm very proud."
Malay Mail
2 days ago
- Business
- Malay Mail
Cristiano Ronaldo to stay at Al Nassr until 2027
RIYADH, June 27 — Cristiano Ronaldo inked a two-year extension with Saudi Arabia's Al Nassr, the club announced Thursday, following months of speculation over which team he would sign for next season. 'Cristiano Ronaldo is staying at @AlNassrFC until 2027,' the club wrote in a post on X. Minutes before the official confirmation, the team posted a teaser video, with the 40-year-old Ronaldo walking along a beachfront and saying: 'Al Nassr forever'. Ronaldo later posted a message on his Instagram, confirming the extension. 'A new chapter begins. Same passion, same dream. Let's make history together,' read the post. The Portuguese superstar arrived in 2023 in the kingdom to play with the club, heralding a rush of players in the latter stages of their careers to the oil-rich country. Last month, Ronaldo posted 'This chapter is over' hours after the Saudi Pro League wrapped up with Al Nassr finishing third and trophyless once again. 'Ronaldo's presence is a key factor in developing the Saudi league in the last two years and a half. He opens the door for elite and young players to come to Saudi Arabia,' a source from the Public Investment Fund (PIF), a major investor in Saudi football, told AFP last month. The oil-funded PIF, the sovereign wealth fund behind a number of big-ticket Saudi investments, controls a group of Pro League clubs including Al Nassr, Al Hilal and Al Ahli. Ronaldo's announcement in May came just months after Brazilian star Neymar ended his injury-plagued 18-month stay in January, after playing just seven times for Al Hilal — on a reported salary of around US$104 million (RM440 million) a year. Although Ronaldo was the Pro League's top scorer with 25 goals, he has been unable to win a Saudi or continental trophy with Al Nassr, who lost in the Asian Champions League semi-finals last month. Last year, the five-time Ballon d'Or winner said he could end his career with Al Nassr, the Riyadh team favoured by a number of Saudi royals. Saudi Arabia has shaken up football by spending heavily on stars from Europe, starting with Ronaldo's move in late 2022, and the desert nation will host the World Cup in 2034. For the past two years, Saudi football fans could watch the likes of Ronaldo and Karim Benzema, with six Ballons d'Or between them, on any given weekend during the football season in the kingdom. However, the oil-fuelled Saudi football project has drawn comparisons with the Chinese Super League, which imported players on exorbitant salaries until team owners went bust as the Chinese economy fizzled. But with Saudi Arabia set to host the 2034 World Cup, and desperate to re-model itself as a tourism and business magnet before global oil demand falls for good, there is probably more to come from the Pro League. Ronaldo appeared to trade an end-of-career payday for football obscurity when he first moved to Riyadh's Al Nassr two years ago in a deal said to be worth US$250 million at the time. — AFP
Mid East Info
2 days ago
- Business
- Mid East Info
Diriyah Company Recognized as one of Time100 Most Influential Companies in the World for 2025 - Middle East Business News and Information
Global recognition highlights the impact and scale of Diriyah development Reflects world-class team and professionalism behind the $63.2 billion City of Earth Reinforces role of Public Investment Fund giga projects in driving Vision 2030 Diriyah, June 2025: Diriyah Company has been recognized as one of the 100 most influential companies in the world by global publishing giant Time Magazine. The annual Time100 awards recognizes companies worldwide who have a transformational impact on a wide range of industrial and business endeavors. Diriyah Company is the 2nd Saudi company to be recognized by the US-based publisher – after Aramco in 2024 – and recognizes the groundbreaking work the developer is undertaking in building its visionary $63.2 billion City of Earth on the outskirts of Riyadh. The recognition places Diriyah Company among a select group of global organizations that are transforming their industries and driving impact across innovation, sustainability, culture, and economic development. Commenting on the accolade, Diriyah Company Group CEO Jerry Inzerillo said: 'Being recognized as one of the Time100 Most Influential Companies is a powerful affirmation of Diriyah's mission to lead with purpose: by honoring our heritage, uplifting our community, and embracing world-class sustainability and hospitality standards. 'From carbon-free construction, energy efficiency and water conservation, to cultural preservation and human-centric development, every aspect of Diriyah's development reflects a commitment to minimizing our environmental footprint while maximizing quality of life for nearly 100,000 future residents Diriyah is a living cultural legacy, one that celebrates Saudi Arabia's storied past while setting new global benchmarks for urban development. With iconic assets like the Royal Diriyah Opera House, the historic Wadi Hanifah, and unprecedented luxury experiences, we are proud to share our vision for The City of Earth with the world.' The most influential companies list, launched in 2021, is curated by Time's global editors and reporters, following nominations across sectors and regions. Each selected company is evaluated on criteria including relevance, leadership, innovation, ambition, and impact. The list includes global brands, high-growth startups, and industry leaders shaping the future of business, society, and culture. Previous companies included in the Time100 Most Influential Companies have included global giants like Apple, Microsoft, LVMH, JP Morgan, Schneider Electric, IBM and Bristol Myers Squib among many others. About Diriyah: Diriyah, Saudi Arabia's premier historical, cultural, and lifestyle destination, is a key component of Saudi Arabia's 2030 Vision. A short 15-minute drive from Riyadh's city center, this 14-square-kilometer development holds historical significance as the birthplace of the Kingdom of Saudi Arabia, dating back to 1727. Currently being developed by Diriyah Company, Diriyah is undergoing a transformation into an authentic Najdi-style mixed-use urban community. Diriyah's centerpiece is At-Turaif, the UNESCO World Heritage Site inscribed in 2010, showcasing the ancient adobe capital city of the First Saudi State, dating back to 1766. Upon completion, Diriyah will host more than 100,000 residents, workers, students, and visitors, offering a diverse range of cultural, entertainment, retail, hospitality, educational, and residential spaces. The first of those spaces include Bujairi Terrace, Riyadh's new premium dining hub with over 20 global and local restaurants and cafes that enjoy uninterrupted views of At-Turaif. Bab Samhan, a Luxury Collection Hotel is the first hospitality offering in Diriyah, providing a tranquil experience with panoramic views of Wadi Hanifah. Diriyah's development provides a dynamic environment that celebrates Saudi Arabia's rich cultural history. About Diriyah Company: Diriyah Company was launched in January 2023 and joined the Public Investment Fund's (PIF) portfolio of giga-projects. The Company is responsible for developing the Diriyah project, the birthplace of the Kingdom of Saudi Arabia and its foremost historical, cultural, and lifestyle destination. A dynamic mixed-use developer, Diriyah Company is redefining urban planning to develop Diriyah, 'The City of Earth', while adhering to the highest design, development, and preservation standards. The company ensures Diriyah's cultural landmarks are complemented by world-class retail offerings, fine-dining experiences, and leading hospitality brands. As a PIF company, Diriyah Company's mission focuses on opportunities in development, hospitality, investment, retail, and office leasing, along with strategic asset management, underscoring
Al Jazeera
2 days ago
- Sport
- Al Jazeera
Cristiano Ronaldo inks new two-year deal to stay at Al Nassr until 2027
Cristiano Ronaldo inked a two-year extension with Saudi Arabia's Al Nassr, the club announced, following weeks of speculation over which team he would sign for next season. 'Cristiano Ronaldo is staying at @AlNassrFC until 2027,' the club wrote in a post on X on Thursday. Minutes before the official confirmation, the team posted a teaser video, with the 40-year-old Ronaldo walking along a beachfront and saying: 'Al Nassr forever.' The Portuguese superstar arrived in 2023 in the kingdom to play with the club, heralding a rush of players in the latter stages of their careers to the oil-rich country. Last month, Ronaldo posted 'This chapter is over' hours after the Saudi Pro League wrapped up with Al Nassr finishing third and trophy-less once again. 'Ronaldo's presence is a key factor in developing the Saudi league in the last two years and a half. He opens the door for elite and young players to come to Saudi Arabia,' a source from the Public Investment Fund (PIF), a major investor in Saudi football, told AFP last month. The oil-funded PIF, the sovereign wealth fund behind a number of big-ticket Saudi investments, controls a group of Pro League clubs including Al Nassr, Al Hilal and Al Ahli. Time for a title Ronaldo's announcement in May came just months after Brazilian star Neymar ended his injury-plagued 18-month stay in January, after playing just seven times for Al Hilal – on a reported salary of about $104m a year. Although Ronaldo was the Pro League's top scorer with 25 goals, he has been unable to win a Saudi or continental trophy with Al Nassr, who lost in the Asian Champions League semifinals last month. Last year, the five-time Ballon d'Or winner said he could end his career with Al Nassr, the Riyadh team favoured by a number of Saudi royals. Saudi Arabia has shaken up football by spending heavily on stars from Europe, starting with Ronaldo's move in late 2022, and the desert nation will host the World Cup in 2034. For the past two years, Saudi football fans could watch the likes of Ronaldo and Karim Benzema, with six Ballons d'Or between them, on any given weekend during the football season in the kingdom. However, the oil-fuelled Saudi football project has drawn comparisons with the Chinese Super League, which imported players on exorbitant salaries until team owners went bust as the Chinese economy fizzled. But with Saudi Arabia set to host the 2034 World Cup, and desperate to re-model itself as a tourism and business magnet before global oil demand falls for good, there is probably more to come from the Pro League. Ronaldo appeared to trade an end-of-career payday for football obscurity when he first moved to Riyadh's Al Nassr two years ago in a deal said to be worth $250m at the time. The Story continues.. 🐐 💛 — AlNassr FC (@AlNassrFC_EN) June 26, 2025
