RIYADH: Saudi Arabia’s Public Investment Fund earned a perfect score in the 2025 Global SWF Index, ranking it among just nine sovereign wealth funds worldwide for top governance, sustainability, and resilience.

The report from the sovereign investor benchmarking firm evaluates 200 of the world’s largest state-owned investment institutions across 25 indicators.

PIF’s flawless score this year marks a major milestone in its institutional development, following steady progress from 92 percent in 2023 to 96 percent in 2024. In contrast, the Saudi fund scored just 28 percent in 2020, according to Global SWF data.

In 2025, only nine sovereign investors globally achieved a full 100 percent score. Of those, three were based in the Europe–Middle East–Africa region: PIF, Ireland’s National Treasury Management Agency, and Nigeria’s Sovereign Investment Authority. 

The Saudi fund led the group within EMEA and was the only Middle Eastern institution to reach a perfect score.

The 2024 report described PIF as “continuing to lead the charge,” highlighting that the fund voluntarily publishes an allocation and impact report as well as a self-assessment aligned with the Santiago Principles — despite not being a member of the International Forum of Sovereign Wealth Funds.

PIF’s sustainability strategy operates within the Kingdom’s broader drive for spending efficiency, a theme highlighted in a March analysis by PwC and Consultancy ME. 

The report noted that public funds, anchored by institutions like PIF, are now being redirected toward high-impact sectors such as healthcare, tourism, and logistics, as well as artificial intelligence, combining fiscal prudence with strategic vision.

Moreover, a Strategy& whitepaper outlined how the nation is investing heavily in its energy transition — targeting approximately $235 billion toward renewables by 2030 and embedding efficiency mandates for state utilities — to support its net-zero ambitions and long-term economic resilience.

This alignment of sustainable investment and cost discipline reinforces PIF’s role in delivering value-driven transformation in line with Vision 2030.

The fund’s elevation to the top tier was driven by enhanced climate-risk disclosures, the launch of a dedicated sustainability report, strengthened board oversight, and the implementation of comprehensive business continuity frameworks.

These changes helped it secure full marks in all 25 areas of the GSR Scoreboard — 10 for governance, 10 for sustainability, and 5 for resilience.

With over $925 billion in assets under management, PIF is a cornerstone of Saudi Arabia’s Vision 2030, investing across strategic sectors, including tourism and logistics, as well as AI and renewable energy. Its strong transparency credentials and environmental, social and governance alignment have helped it build trust with global partners and signal its readiness for large-scale cross-border investment.

According to the 2024 PIF Effect report, the fund’s strategic projects, ranging from green bond issuances to renewable energy infrastructure, have generated a significant impact throughout Saudi Arabia and the world, enhancing local job creation, technology transfer, and environmental outcomes.

A February analysis by Consultancy ME underscored how the Kingdom’s broader focus on “spending efficiency is driving growth and building resilience,” with PIF playing a central role by prioritizing cost-effective, high-impact initiatives aligned with Vision 2030 objectives.

The full 2025 GSR report will be released on July 1.

RIYADH: Egypt’s annual urban headline inflation rate rose to 16.8 percent in May, up from 13.9 percent in April, driven primarily by continued non-food price pressures, according to official data.

Released by the Central Bank of Egypt, the analysis pointed to a renewed uptick in food prices and challenging base effects, as the same period last year saw negative inflation.

These inflation trends come as Egypt’s broader economic landscape continues to be shaped by both domestic and global pressures. The government is navigating a delicate recovery amid external shocks, ongoing structural reforms, and efforts to manage public debt. Despite signs of resilience in credit and growth, inflation remains a key concern for both policymakers and households.

This backdrop helps explain Moody’s February decision to affirm Egypt’s Caa1 long-term foreign and local currency ratings with a positive outlook, citing improved prospects for debt servicing.

It also aligns with the country’s reported real gross domestic product growth of 3.9 percent in the first half of the current fiscal year, a signal of economic resilience, according to Prime Minister Mostafa Madbouly in May.

The newly released CBE report said: “The increase was particularly influenced by rising prices of pharmaceutical products and fresh fruits. Additionally, a moderate rise in inland transportation costs contributed to overall inflation, reflecting the second-round effects of April’s fuel price hike.”

It added: “Similarly, annual core inflation accelerated to 13.1 percent in May 2025 from 10.4 percent in April 2025. This increase reflects higher monthly core inflation, registering 1.6 percent in May 2025 compared to 1.2 percent in April 2025, as well as unfavorable base effects compared to the negative 0.8 percent recorded in May 2024.”

According to the financial institution, core inflation is a version of the headline consumer price index that removes the effects of short-term price shocks, allowing for a clearer view of long-term inflation trends by focusing only on stable, ongoing price changes rather than temporary fluctuations.

The report further indicated that monthly core inflation dynamics in May were influenced by rising prices in both food and non-food categories, such as engine oil, restaurant and cafe services, local transport, and housing rents. Seasonal effects linked to Eid Al-Adha also contributed, particularly with increased costs for Hajj and Umrah, clothing, and meat.

“Monthly core inflation recorded 1.6 percent in May 2025, reflecting the impact of previously mentioned changes in core CPI items. Retail items and services contributed to monthly core inflation by 0.74 and 0.68 percentage points, respectively, while core food contributed 0.22 percentage points,” the report said.

It also revealed that monthly urban headline inflation rose to 1.9 percent in May, up from 1.3 percent in April, primarily fueled by ongoing price pressures, along with increases in volatile food prices and public services such as inland transport and health care.

“Likewise, annual rural headline inflation increased to 16.2 percent in May 2025, compared with 13.1 percent in April 2025, with annual nationwide headline inflation rising to 16.5 percent in May 2025 from 13.5 percent in April 2025,” the CBE report said.

In May, Madbouly said that the country is preparing to transition away from its current economic reform program with the International Monetary Fund, which is scheduled to conclude by late 2026 or early 2027.

He said at the time that the government is developing a long-term national economic strategy that will extend to 2030, focusing on sustaining growth without relying on international institutions, according to an official release. 

The remarks come as Egypt works to stabilize an economy that has been strained by record inflation, a weakening currency, and rising debt. In recent years, the government has implemented reforms aimed at unlocking external financing, attracting Gulf-backed investments, and completing a record sale of state assets.