Related Articles

• 
  PIF’s 2025 results back 2026-30 strategy shift

  3 July 2026

  Saudi Arabia’s Public Investment Fund (PIF) has published its audited consolidated financial statements for the year ended 31 December 2025, the first full set of annual results to follow the board’s approval of the fund’s 2026-30 strategy.

  The results show a sharp improvement in profitability last year even as leverage rose and volatility in its listed equity holdings widened. The performance helps explain the strategic shift towards capital discipline and focus on private sector partnerships set out in April.

  In April, PIF’s board, chaired by Crown Prince Mohammed Bin Salman Al-Saud, approved a new five-year strategy structured around three portfolios, the Vision Portfolio, the Strategic Portfolio and the Financial Portfolio, and organised around six domestic ecosystems: tourism, travel and entertainment; urban development and liveability; advanced manufacturing and innovation; industrials and logistics; clean energy, water and renewables infrastructure; and Neom as a standalone ecosystem.

  Project reprioritisation

  The strategy followed a period of reprioritisation across PIF’s gigaproject portfolio and set out a renewed emphasis on private capital, with PIF stating it would “further enable the role of the private sector as an effective partner for sustainable economic development”.

  PIF’s consolidated profit for 2025 rose to SR65.2bn ($17.4bn) in 2025, up 152% from SR25.8bn in 2024. The increase was driven by operating profit more than doubling, to SR78bn from SR34.7bn, as revenue growth outpaced cost of revenue and general and administrative expenses moderated relative to the prior year. Profit attributable to the owner of the fund rose to SR46.4bn, up from just SR1bn in 2024, a swing that accounts for most of the year-on-year improvement.

  Total revenue, comprising SR312bn of operating revenue and SR137.9bn of income from investment activities, rose 8.8% to SR449.9bn. Core operating revenue alone was up 9.9%, from SR284bn in 2024.

  Segment mix                                                     

  The segment breakdown shows where that growth came from, and it lines up closely with the six ecosystems named in the 2026-30 strategy. Banking and financial services remained the largest single revenue line at SR85.3bn, followed by telecommunications at SR76.8bn ($20.5bn), which was down slightly on 2024. Mining revenue rose 19.3% to SR38.8bn, consistent with the strategy’s focus on industrials and logistics, while revenue from electronic gaming and related services held broadly flat at SR15.6bn, an area PIF governor Yasir Al-Rumayyan specifically cited as a sector for strategic investment alongside artificial intelligence and renewable energy. Agricultural and livestock revenue nearly tripled, to SR7.6bn from SR2.5bn, and revenue from events operations rose to SR7.6bn from SR6bn, both pointing to the diversification into domestic ecosystems the strategy describes. Real estate operations revenue and revenue from advanced electronics and aerospace both declined slightly year-on-year.

  Total assets grew 5.1% to SR4.54tn from SR4.32tn, continuing the expansion PIF has reported since 2015, when the strategy document put assets under management at $150bn, against more than $900bn today. The two figures are not directly comparable, since the IFRS consolidated balance sheet captures the full assets of consolidated subsidiaries such as the fund’s banking, telecommunications and mining operations, while PIF’s publicly cited assets-under-management figure uses a different valuation methodology, but both point to the same order of scale.

  Total equity, by contrast, fell 2% to SR2.63tn ($701bn) from SR2.68tn, despite the sharp rise in reported profit. The gap is explained by other comprehensive income, which swung to a loss of SR113.3bn for the year, driven primarily by a SR112.8bn fair-value loss on equity instruments measured at fair value through other comprehensive income. In other words, unrealised mark-to-market losses on part of PIF’s listed equity portfolio outweighed the operating profit improvement, leaving total comprehensive income attributable to the owner of the fund at a loss of SR64.7bn for the year, though this was narrower than the SR154.4bn loss recorded in 2024.

  Total liabilities rose 16.7%, to SR1.91tn from SR1.64tn, driven mainly by loans and borrowings, which climbed 27.2% to SR725.3bn from SR570.4bn. Property, plant and equipment grew 6.3%, to SR429.6bn, reflecting continued capital spending across PIF’s real estate and gigaproject portfolio, including the stadium, hospitality and urban development programmes.

  Strategy context

  The scale of PIF’s investment activity in the run-up to 2025 is set out in the April strategy announcement rather than the financial statements themselves. Between 2021 and 2025, PIF says it invested more than $199bn in new projects in Saudi Arabia, contributed $243bn to real non-oil GDP and spent more than $157bn with the local private sector, alongside growing assets under management six-fold and delivering an annualised total shareholder return of more than 7% since 2017. Read against the 2025 results, the rise in mining, gaming, agricultural and events revenue is an early indication that this domestic ecosystem investment is beginning to show up in operating performance, even as the wider balance sheet shows the cost of that expansion in higher borrowing and greater sensitivity to listed equity markets.

  The results reinforce a theme demonstrated by PIF’s ongoing award of construction contracts for Expo 2030, the 2034 Fifa World Cup and other gigaprojects in the kingdom. Growth is increasingly funded through a combination of retained earnings, debt and, with the new strategy, private co-investment, rather than balance-sheet expansion alone. The explicit retention of Neom as a named ecosystem in the 2026-30 strategy, despite the cancellation of several Trojena contracts and the loss of the Asian Winter Games over the past year, suggests PIF intends to continue funding the project, but within a more disciplined framework most likely centred on industrial development around the Port of Neom, which is also known as Oxagon.

  The 2025 results and the 2026-30 strategy point to a fund entering a new phase: profit generation has improved markedly, but leverage has grown and comprehensive income remains exposed to swings in listed markets, both factors consistent with a strategy that emphasises capital efficiency, institutional excellence and a larger role for private capital rather than a further scaling-up of gigaproject spending on PIF’s own balance sheet.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17540500/main.gif

  Colin Foreman
• 
  UAE to add Ajman to its Etihad Rail passenger network

  3 July 2026

  

   

  Register for MEED’s 14-day trial access 

  As part of ongoing procurement for the UAE’s national passenger rail rollout, Abu Dhabi’s Etihad Rail is adding Ajman to the planned network, extending coverage to five of the seven emirates.

  Etihad Rail tendered a design-and-build contract in late June to construct a section of the network to Hamriyah in Ajman, branching off from its existing freight network.

  The scope includes civil and track works, the construction of a passenger station and other associated infrastructure.

  Contractors have until 27 July to submit their proposals.

  The extension to Ajman brings Etihad Rail’s passenger network closer to the wider Northern Emirates, where Umm Al-Quwain and Ras Al-Khaimah still sit outside the current rollout, despite lying along the existing freight corridor, which currently terminates at Al-Ghail dry port in Ras Al-Khaimah.

  The sequencing of the Ajman section could pave the way for further extensions if this section proves successful.

  The latest development follows Etihad Rail’s start of passenger rail operations on 30 June 2026, with an introductory operational phase on the Abu Dhabi-Fujairah route.

  The passenger roll-out marked a major milestone for Etihad Rail, which was established in 2009 and tasked with delivering a roughly 900-kilometre railway linking key cities, ports and industrial hubs from Ghuwaifat to Fujairah on the eastern coast.

  The launch came less than five years after the UAE announced its ambition to create a national passenger railway under the country’s “Projects of the 50” programme, aiming to support economic diversification and sustainable development.

  According to Etihad Rail, passenger services will be introduced in planned phases through 2026 and 2027:

  • 23 June 2026: Passenger tickets went on sale via the Etihad Rail app and a dedicated booking website (as well as the contact centre for certain fares)
  • 30 June 2026: Introductory operational phase begins with services between Abu Dhabi and Fujairah only
  • 30 September 2026: Passenger rail services formally commence and expand to include Abu Dhabi, Dubai, Al-Dhaid and Fujairah
  • 30 December 2026: Services extend to Al-Dhafra stations
  • 30 March 2027: Services expand further to include Sharjah

  In response to MEED’s request for comment on the Ajman section, Etihad Rail said:

  “Etihad Rail remains committed to supporting the UAE’s vision for an integrated, efficient and sustainable transport network that enhances connectivity between communities and supports the nation’s long-term economic and social development.

  “As previously announced, Etihad Rail’s passenger services are being introduced in phases, with further expansion planned over time. We do not comment on market speculation, commercial discussions, procurement activity, or projects that have not been formally announced.

  “Any updates regarding future developments will be communicated through official channels in due course.”

  

  Passenger rail operations

  Tickets for the Abu Dhabi-Fujairah route are already on sale through the operator’s digital platforms.

  Customers can book tickets up to four weeks before travel. Tickets for new destinations will be released in line with the phased roll-out.

  At this point, Etihad Rail’s passenger service will officially connect 11 cities and regions across the UAE, supported by a station network that links key urban and economic centres. The station list includes:

  • Abu Dhabi – Mohamed Bin Zayed City Station
  • Dubai – Al-Yalayis Station
  • Sharjah – University City Station
  • Fujairah Station
  • Al-Dhaid Station
  • Al-Dhannah Station
  • Madinat Zayed Station
  • Liwa Station
  • Al-Mirfa Station
  • Al-Sila Station
  • Al-Faya Station

  Construction history

  The first phase of Etihad Rail comprised a 264-kilometre freight line spanning Shah, Habshan and Ruwais. This was primarily delivered by a consortium of Italy’s Saipem and Maire Technimont, alongside UAE-based Dodsal Engineering & Construction.

  Stage 2 of Etihad Rail comprises four major packages.

  India’s Larsen & Toubro worked with Chinese state-owned PowerChina International on the design and construction of freight facilities for Stage 2 under a AED1.87bn contract.

  A joint venture comprising China State Construction Engineering Corporation and South Korea’s SK Engineering worked on the first of four civil and track works packages for the 139km line between Ghuwaifat and Ruwais. The contract, worth AED1.5bn, was confirmed in March 2019.

  Packages B and C of Stage 2 were awarded to a joint venture of Beijing-based China Railway Construction Corporation and local Ghantoot Transport & General Contracting in June 2019.

  Both packages are understood to have a combined value of AED4.4bn and cover 310km of the rail network.

  In December 2019, a joint venture of CRCC and local National Projects & Construction was formally confirmed for the AED4.6bn Package D.

  Package D will link the ports of Fujairah and Khorfakkan to the network at the Dubai-Sharjah border and stretches over a distance of 145km.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17525193/main.jpg

  Yasir Iqbal
• 
  IHC deepens India links with $11.5bn aluminium venture

  3 July 2026

  Abu Dhabi’s International Holding Company (IHC) has struck its third major partnership with India’s Adani Group in a year, signing an agreement to co-develop an $11.5bn greenfield aluminium complex in the eastern Indian state of Odisha.

  Under a memorandum of understanding signed with the Odisha state government on 2 July, Adani Enterprises (AEL) and International Resources Holding (IRH), the natural resources investment platform IHC operates through its 2PointZero subsidiary, will form a 50:50 joint venture to build an integrated alumina and aluminium complex. The project comprises a 4-million-tonne-a-year (t/y) alumina refinery, a 2 million t/y aluminium smelter, a 4,000MW captive power plant and a 1 million t/y downstream manufacturing park.

  The deal marks Odisha’s largest foreign direct investment proposal to date and what the partners describe as India’s largest single foreign investment in the metallurgy sector. It is expected to create about 53,500 jobs, split between roughly 35,000 during construction and 18,500 in ongoing mining, refining, smelting and manufacturing operations once the complex is running.

  The tie-up extends a fast-growing relationship between IHC and Adani that began with a renewable energy joint venture between IHC subsidiary ePointZero and Adani Green Energy earlier this year. For IHC, which has built a $233bn portfolio spanning more than 1,300 subsidiaries across technology, infrastructure, financial services and consumer sectors, the Odisha project deepens a strategy of using IRH as a vehicle to secure positions across the minerals value chain underpinning the energy transition, moving beyond passive investment into direct industrial development.

  Odisha holds some of India’s largest bauxite reserves and is already a significant alumina and aluminium producer. State officials cast the project as central to plans to position the region as a global manufacturing hub, tying it to the state’s Samruddha Odisha 2036 development programme and the national Viksit Bharat 2047 agenda.

  The project will proceed in two phases. Following the MoU signing, AEL and IRH said they would move to land acquisition, statutory approvals and infrastructure planning alongside the Odisha government.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17539363/main.png

  Colin Foreman
• 
  Contractor wins Qiddiya Speed Park package deal

  3 July 2026

  

   

  Register for MEED’s 14-day trial access 

  Riyadh-based contractor El-Seif Engineering Contracting has won a contract to build the Exclusive Viewing Lounge (EVL) project in Qiddiya Entertainment City.

  Saudi gigaproject developer Qiddiya Investment Company (QIC) awarded the contract.

  The EVL comprises a four-storey structure designed for race-day viewing and guest hospitality. It will include dedicated spectator viewing areas, indoor lounge spaces, guest amenities and back-of-house service areas to support operations.

  Local firm Ammico Contracting carried out the project’s enabling works.

  The EVL is part of the Speed Park project at Qiddiya, which El-Seif Engineering Contracting and UAE-based Alec are jointly executing, as previously reported by MEED. The wider scope includes the construction of buildings around the racetrack.

  The racetrack is being delivered by local United Maintenance & Contracting Company (Unimac). In February 2024, MEED exclusively reported that QIC had awarded an estimated SR1.8bn ($480m) contract for the racetrack and associated infrastructure at Qiddiya’s Speed Park.

  The contract scope includes the track build and all infrastructure works, including electrical networks, storm drainage systems, water and sewer networks, landscaping, and associated underground and above-ground structures, along with related civil works.

  The Speed Park is being built around a Federation Internationale de l’Automobile (FIA) Grade 1 racetrack as part of the resort core in Qiddiya Entertainment City. Once complete, the circuit will be capable of hosting Formula 1 Grand Prix and motorcycling MotoGP races. 

  The Speed Park is one of several major projects within the greater Qiddiya development. Other projects include an e-games arena, the Prince Mohammed Bin Salman Stadium, a horse race venue, a performing arts centre, the Dragon Ball and Six Flags theme parks, and Aquarabia.

  The project is a key part of Riyadh’s strategy to boost leisure tourism in the kingdom. According to GlobalData, leisure tourism in Saudi Arabia has experienced significant growth in recent years.

  

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17538940/main.jpg

  Yasir Iqbal
• 
  Local contractor wins DIFC tower contract

  3 July 2026

  Register for MEED’s 14-day trial access 

  Dubai-based contractor Al-Basti & Muktha has been awarded a contract to build the DIFC Heights Tower mixed-use development.

  The state-backed Dubai International Financial Centre (DIFC) awarded the contract.

  The project comprises a 43-storey building with 366 residential units, office space, and retail and food-and-beverage outlets. Construction is expected to commence shortly, with completion slated for 2029.

  Enabling works are under way and are being undertaken by Germany’s Bauer.

  Lebanese engineering firm Dar Al-Handasah is the lead and supervision consultant, while UAE-based Time is the project manager. Canadian engineering firm AtkinsRealis is the architect and concept designer, and local firm Omnium is the cost consultant.

  In a statement, DIFC said the project is being developed on the final remaining plot within its original land bank in the Gate District.

  Earlier this year, Dubai announced a AED100bn ($27bn) expansion of DIFC through the creation of the DIFC Zabeel District. A statement from the Government of Dubai Media Office said the new district will add more than 7 million square feet (sq ft), bringing total gross floor area to 17.7 million sq ft.

  The Zabeel District is expected to more than double DIFC’s capacity to more than 42,000 businesses, support a workforce exceeding 125,000, and allocate more than 1 million sq ft for future technologies and artificial intelligence. Planned in six phases, the expansion is scheduled to open to the public in 2030, with the masterplan due for completion in 2040.

  A bridge will link the DIFC Zabeel District to the existing DIFC Gate District.

  ---

  READ THE JULY 2026 MEED BUSINESS REVIEW – click here to view PDF

  Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

  Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:

  > AGENDA: Gulf aviation ambitions face uncertain future > AIRPORTS: Dubai and Riyadh reaffirm airport ambitions > MARKET FOCUS: Levant recovers in three speeds  > INDUSTRY REPORT: Dubai eyes tourism sector recovery > INTERVIEW: EtihadWE prepares roadmap for future projects  > PROJECTS MARKET: Mena project momentum holds despite conflict  > DATA CENTRES: Big Tech falls short on data centre promise > SAVINGS: Retirement creates multibillion-dollar opportunity for region   > LEADERSHIP: Aramco’s citizen developers accelerate digital change

  To see previous issues of MEED Business Review, please click here

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17538278/main.jpg

  Yasir Iqbal