Saudi wealth fund’s US stock investments hit $20.6bn in Q2

The wealth fund has undertaken a significant strategic overhaul of its US portfolio, with notable increases in its stakes in several key technology and financial firms, while reducing its positions in some other notable companies, data from the US Securities and Exchange Commission showed. File
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Updated 15 August 2024
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Saudi wealth fund’s US stock investments hit $20.6bn in Q2

  • PIF has more than doubled its investment in Advanced Micro Devices, growing its holdings from 1.08 million shares to 2.31 million
  • The strategic shift aligns with PIF’s broader goals of becoming a global investment powerhouse

CAIRO: Saudi Arabia’s Public Investment Fund witnessed a modest rise in its US stock investments, reaching $20.66 billion in the second quarter, up from $20.55 billion in the previous quarter.

The wealth fund has undertaken a significant strategic overhaul of its US portfolio, with notable increases in its stakes in several key technology and financial firms, while reducing its positions in some other notable companies, data from the US Securities and Exchange Commission showed.

Among the most substantial changes, the sovereign fund has more than doubled its investment in Advanced Micro Devices, growing its holdings from 1.08 million shares to 2.31 million. The fund has also significantly increased its position in PayPal, raising its shares from 1.38 million to 4.26 million, reflecting a strong confidence in the payment services sector.

In the technology sector, PIF’s investments have notably expanded. Its holdings in Meta Platforms grew from 268,300 shares to 362,000, and Microsoft saw an increase from 341,900 shares to 481,000. The fund also made a remarkable tenfold increase in its stake in Nvidia Corp., elevating its shares from 159,000 to 1.59 million. Additionally, PIF’s investment in Nu Holdings grew substantially, with shares increasing from 1.18 million to 3.8 million.

This strategic shift aligns with PIF’s broader goals of becoming a global investment powerhouse and playing a pivotal role in shaping the future global economy while contributing to the economic transformation of Saudi Arabia. The fund aims to boost its annual investments to SR150 billion ($39.9 billion) by 2025 and increase assets under management to SR4 trillion.

However, PIF has also reduced its stakes in several companies alongside these aggressive expansions. Investments in Booking Holdings decreased from 77,700 shares to 58,200, and Adobe Inc. saw a slight reduction from 442,400 shares to 423,500. The fund also trimmed its position in Cummins Inc., from 1.8 million shares to 1.64 million. In the consumer sector, Starbucks saw a reduction in shares from 3.81 million to 3.68 million, while Salesforce and Visa saw their positions cut from 507,000 to 469,100 and from 908,715 to 802,292, respectively.


Saudi Arabia issues over 37k certificates of origin reinforcing export growth

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Saudi Arabia issues over 37k certificates of origin reinforcing export growth

RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources issued 37,730 certificates of origin in August, maintaining its strong focus on enhancing the country’s export sector.

This achievement marks the 16th consecutive month with certificate issuances exceeding 30,000, following July’s total of 40,588 and June’s 31,887.

These certificates play a vital role in confirming that exported goods are either of Saudi origin or have attained national origin status, thereby facilitating smoother international trade.

By streamlining the issuance process, the ministry seeks to boost the competitiveness of the Kingdom’s exports in international markets, strengthen trade relationships, and promote broader economic growth.

To accommodate the diverse needs of exporters, the certificates are offered in four distinct formats. One format is specifically designed for national products traded within Gulf Cooperation Council countries, facilitating regional commerce.

Another format caters to exports to Arab nations. Additionally, a preferential certificate is available for trade with countries that have free trade agreements with the GCC.

For exports to countries without preferential treatment, a general certificate is provided in both Arabic and English to ensure accessibility.

The enhanced ease of exporting goods bolsters the diversification of Saudi Arabia’s economy and reduces its reliance on oil revenues. This effort aligns with the Kingdom’s broader economic objectives outlined in Vision 2030, which focus on fostering sustainable, long-term growth through the expansion of non-oil sectors. Recently, Saudi Arabia has introduced several key initiatives designed to strengthen its export capabilities, particularly for non-oil products, as part of its broader diversification strategy.

A key initiative in this effort is the “Made in Saudi” program, spearheaded by the Saudi Export Development Authority. This initiative promotes locally manufactured goods on the international stage by helping companies secure the “Saudi Made” brand.

This branding not only increases the visibility of Saudi products in global markets but also emphasizes quality and credibility, thereby enhancing their competitiveness abroad.

SEDA has also launched several trade missions to bolster international trade relationships. In 2024, Saudi delegations took part in prominent global exhibitions, including the Big 5 Construct Egypt and events in India, where they highlighted Saudi non-oil exports.

These missions facilitate connections between Saudi exporters and international buyers, expanding market access for national products. Such efforts underscore the Kingdom’s strategic goal of increasing non-oil exports to 50 percent of gross domestic product, diversifying its economy, and diminishing its reliance on oil revenues.


Saudi flynas inks exclusive deal as Al-Hilal Club’s official air carrier

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Saudi flynas inks exclusive deal as Al-Hilal Club’s official air carrier

JEDDAH: Saudi budget airline flynas has made its debut in the sports sector by signing a sponsorship deal with Al-Hilal Club Co., becoming the team’s official air carrier. 

The airline signed an exclusive agreement to support Al-Hilal for four seasons, running through the 2027-2028 period, the Saudi Press Agency reported. 

As part of the deal, flynas will dedicate an aircraft featuring Al-Hilal’s logo on its fuselage. The airline will also gain commercial rights both on and off the field, and its logo will appear on the players’ jerseys as an official partner. 

The sponsorship aligns with Saudi Vision 2030, which seeks to boost the sports sector as a driver of economic growth and tourism. 


Saudi Arabia’s POS transactions fluctuate in early September to reach $3.5bn

Updated 11 September 2024
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Saudi Arabia’s POS transactions fluctuate in early September to reach $3.5bn

  • Spending in the education sector led the dip, recording the highest decrease at 43.6%
  • Spending on public utilities saw the second-largest decline at 25.1%

RIYADH: Saudi Arabia’s point-of-sale transactions dipped in the first week of September, dropping by 4.9 percent from the previous week to reach SR13.3 billion ($3.5 billion), with the education sector leading the decline.

The latest figures from the Saudi Central Bank, also known as SAMA, showed that spending in the education sector led the dip, recording the highest decrease at 43.6 percent, with total transactions reaching SR350 million.

This week marks the third time in a row the education sector witnessed a decrease in spending after surging for four consecutive weeks, coinciding with the start of the academic year on Aug. 18.

During the first week of September, spending on public utilities saw the second-largest decline at 25.1 percent to SR59 million.

Spending on culture and recreation recorded the third biggest dip with a 12.2 percent negative change, reaching SR293.4 million. 

Expenditure on miscellaneous goods and services recorded the smallest decline at 0.7 percent, reaching SR1.57 billion during this period. 

Saudis spent SR209.8 million on electronic and electric devices and SR1.92 billion at restaurants and cafes. These two sectors experienced the second and third smallest declines, dropping 0.8 percent and 1.3 percent, respectively.

Looking at the biggest value of transactions this week, the food and beverages sector saw the biggest share of the POS at SR2.10 billion, followed by restaurants and cafes and miscellaneous goods and services.

Spending in the top three categories accounted for 41.98 percent or SR5.6 billion of this week’s total value.

The most significant increase, at 7.8 percent, occurred in spending on jewelry, boosting the total to SR247.8 million. Expenditures on furniture came in second place, surging by 5.4 percent to SR309.3 million. In third place, hotel spending increased by 3 percent to SR245.3 million.

Geographically, Riyadh dominated POS transactions, representing 34.1 percent of the total, with spending in the capital reaching SR4.55 billion — a 4.6 percent decrease from the previous week. 

Jeddah followed with a 5 percent decline to SR1.82 billion, accounting for 13.6 percent of the total, and Dammam came in third at SR662.1 million, down 4.2 percent.

Tabuk saw the most significant decrease in spending, down by 9.9 percent to SR265 million. Buraidah and Abha also experienced downsticks, with expenditure dipping 7.9 percent and 7.7 percent to SR309.1 million and SR176.5 million, respectively.

In terms of the number of transactions, Makkah recorded the highest increase at 1.9 percent, reaching 8,613. Tabouk recorded the highest decrease at 2.7 percent, reaching 4,850 transactions.


Saudi Arabia calls for regional cooperation to tackle environmental challenges 

Updated 11 September 2024
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Saudi Arabia calls for regional cooperation to tackle environmental challenges 

RIYADH: Regional and international cooperation is pivotal in addressing environmental challenges, especially in rehabilitating degraded lands, according to Saudi Arabia’s vice minister of environment, water, and agriculture. 

Speaking at the 26th meeting of Gulf Cooperation Council ministers responsible for environmental affairs in Qatar, Mansour Al-Mushaiti emphasized that collaboration is essential to strengthen the resilience of drought-prone communities, as reported by the Saudi Press Agency. 

The Kingdom is leading environmental protection efforts in the region through the Saudi Green Initiative, which aims to protect 30 percent of the nation’s land and marine areas by 2030. 

Saudi Arabia’s National Environment Strategy provides a framework focused on conserving biodiversity, preventing land degradation, and advancing global coral reef research. 

During the meeting, Jasem Mohamed Al-Budaiwi, secretary-general of the Gulf Cooperation Council, noted that environmental protection and addressing climate change impacts have become core priorities for countries in the region. 

“On the international front, collective cooperation to address climate change and other environmental challenges has become essential among all countries, with GCC states actively contributing to global cooperation and providing solutions to mitigate the effects of climate change while preserving the environment,” Al-Budaiwi said in a statement. 

He added that GCC nations are working to enhance environmental policies, promote renewable energy, and reduce carbon emissions to strike a balance between development and environmental preservation. 

Saudi Arabia’s Al-Mushaiti urged GCC nations to ratify the Middle East Green Initiative Charter and set national targets for tree planting and land rehabilitation. He also called for greater support from national development funds for vegetation projects across the region. 

In May, Saudi Arabia committed $2.5 billion to the Middle East Green Initiative to further environmental sustainability across the region. 

Al-Mushaiti also noted that the upcoming COP16 in Saudi Arabia this December will play a significant role in advancing international efforts to reduce land degradation and combat drought. 

Earlier this month, during the 10th Regional Forum of the International Union for Conservation of Nature for West Asia, Saudi Minister of Environment, Water, and Agriculture Abdulrahman Al-Fadhli highlighted the Kingdom’s environmental progress through the National Environment Strategy and the Saudi Green Initiative. 


Oil Updates – crude recovers after slide as US inventory drop, storm support

Updated 44 min 10 sec ago
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Oil Updates – crude recovers after slide as US inventory drop, storm support

  • Hurricane Francine causes offshore production shut-ins
  • About 24 percent of crude production in US Gulf of Mexico shut
  • API shows weekly US crude, gasoline stockpiles fall

LONDON: Oil climbed more than 1 percent on Wednesday, paring some of the previous day’s losses, as a drop in US crude inventories and concern about Hurricane Francine disrupting US output countered concerns about weak global demand.

US crude stocks fell by 2.793 million barrels, gasoline declined by 513,000 barrels and distillates inventories rose by 191,000 barrels, according to market sources citing the latest week’s American Petroleum Institute figures on Tuesday.

Brent crude futures were up $1.46, or 2.11 percent, to $70.65 a barrel at 12:38 p.m. Saudi time, while US crude futures gained $1.55, or 2.36 percent, to $67.30.

“The API provided some comfort as it showed a sizable decline in crude oil stocks, a forecast-beating draw in gasoline and a tiny build in distillate inventories,” said Tamas Varga of oil broker PVM.

Both oil benchmarks tanked on Tuesday, with Brent falling below $70 to its lowest since December 2021 and US crude dropping to its lowest since May 2023, after OPEC revised down its 2024 oil demand growth forecast for a second time.

Concern about Hurricane Francine disrupting output in the US, the world’s biggest producer, also lent support, other analysts said.

“The market rebounded autonomously as Tuesday’s drop was substantial,” said Yuki Takashima, economist at Nomura Securities, adding supply disruption fears from Francine also lent support.

About 24 percent of crude production and 26 percent of natural gas output in the US Gulf of Mexico were offline due to the storm, the US Bureau of Safety and Environmental Enforcement said on Tuesday.

Following Tuesday’s report from the API, an industry group, official inventory figures from the US government are due out at 5:30 p.m. Saudi time.

Eleven analysts polled by Reuters estimated on average that crude inventories rose by about 1 million barrels and gasoline stocks fell by 0.1 million barrels.