PIF wants more skin in the diversification game at the Private Sector Forum

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WHAT WE’RE TRACKING TODAY

Saudi-US consortium eyes major energy blocks in Syria?

Good morning, wonderful people. Our big story in today’s brisk issue looks at signs of the shifting dynamics between the Public Investment Fund and the private sector at this year’s Private Sector Forum. Mining, utility, EV, and tech companies want partners who will put their money on Saudi’s manufacturing and localization push, as the fund updates its strategy for the next five years.

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We’re hiring a technology reporter: EnterpriseAM is looking for a tech reporter to own the beat across Egypt, the UAE, Saudi Arabia, and beyond.

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We want someone who can pick up the phone or WhatsApp, get people talking, and turn what they say into stories that senior decision-makers need to read. We also expect you to attend industry events and maintain relationships with PR folks across the industry without selling out. If you’ve got 2-3 years of experience and the hunger to build a beat from the ground up, we want to hear from you. We’re also interested in hearing from veteran reporters. Spoken Arabic is strongly preferred.

The role is based in Cairo, though we’re open to remote for the right candidate. If you’re reading EnterpriseAM, you know what we’re about: A no-BS daily news outlet that tells busy execs, investors, founders, and ambitious people what they need to know about the trends shaping business, economy, finance, regulation, and public policy across our region. We write stories that have impact — about issues that matter — for a global audience of decision-makers.

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Happening today

The subscription window for Kesay Clinics’ Nomu IPO opens today, after the IPO was priced at SAR 15 per share. The company stands to raise SAR 30 mn in gross proceeds from issuing 2 mn shares, giving the clinic operator a market cap of roughly SAR 600 mn, according to our calculations.

What’s next? Once the books close on 22 February, the final share allocations are expected to be announced on 25 February.

ADVISORS- Estidamah Capital is quarterbacking the transaction as financial advisor, with Derayah Financial serving as lead manager. RSM and Alzoman, Alfahad, & Alhajjaj Professional Services acted as auditors. Receiving agents include Alinma Capital, Alrajhi Capital, SNB Capital, BSF Capital, and Riyad Capital, among others.

WEATHER- Dust-filled winds will sweep across the Northern Borders, Al Jouf, Tabuk, Hail, Qassim, Madinah, and Riyadh, while fog blankets the highlands of Makkah, Al Baha, Aseer, and Jazan.

Riyadh: 32°C high / 19°C low;
Jeddah: 33°C high / 23°C low;
Makkah: 35°C high / 23°C low;
Dammam: 29°C high / 20°C low.

Watch this space

ENERGY — A Saudi-US alliance to tap Syria’s energy fields? Two Saudi and three US-based energy firms are planning to form a consortium to explore and produce oil and gas in northeastern Syria, Reuters reports, citing people it says are familiar with the matter. The group will include Acwa and Taqa, alongside Baker Hughes, Hunt Energy, and Argent LNG, covering four to five exploration blocs. An MoU is expected in the coming weeks, the sources said.

The Kingdom has taken the reins of Syria’s reconstruction after a Saudi delegation signed a sweeping slate of agreements worth bns of SAR in Damascus earlier this month. The agreements spanned telecoms, infrastructure, and real estate, along with rebuilding Aleppo International Airport and launching a new joint airline.

Data point

8.9% — that’s the y-o-y increase in the Kingdom’s Industrial Production Index (IPI) in December 2025, supported by growth across mining and quarrying, manufacturing, and utilities, according to data (pdf) from the General Authority for Statistics. The index inched down 0.1% m-o-m from a strong November.

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The big story abroad

Recent Wall Street gainers have one thing in common — they are not tech: Amid mounting fears over AI advancements superseding software firms, equities of formerly disfavored sectors have risen, namely supermarkets, energy companies, and manufacturers. Investors have poured USD 62 bn into funds focused on non-tech stocks in recent weeks, outgrossing the USD 50 bn they attracted in the whole of 2025.

Brokerages were not spared: Major US brokerages were also hit by the selloff — Charles Schwab, Morgan Stanley, and Raymond James saw shares sharply drop.

MEANWHILE- US retail figures lag, raise doubts over spending: US retail sales during the December holiday season remained flat, suggesting that consumers remain held back by high living costs and job market precariousness.

Color me integrated

Signs of a shift in the dynamic between the private sector and the Public Investment Fund were clear as day at the Private Sector Forum held in Riyadh. The fund is moving from “building sectors” to “integrating ecosystems,” PIF Governor Yasser Al Rumayyan told the CEOs and operators gathered at the forum, which wrapped up yesterday with over SAR 60 bn in MoUs signed.

What it means

The fund now expects the private sector to move from “execution” to “value creation,” across the supply chain, as Al Rumayyan put it. The structure of the forum — shifting toward matchmaking and specific zones for advanced manufacturing, clean energy, and more — suggests the new scorecard will favor operators who bring skin in the game via JVs and localization, rather than just responding to RFPs.

The search for diversification partners

Mining and utility champions are already shifting gears: “We are not looking for suppliers anymore,” Maaden’s VP for Procurement Abdullah Al Osaimi said, adding the mining giant wants partners who will manufacture locally to support Maaden’s ambitious 10x growth target by 2040. Acwa Chairman Mohammad Abunayyan is also saying the renewables champion evolved from a local operator (paying foreign firms to set up plants in the Kingdom) into an exporter of desalination innovation, being actively solicited by the US and China to deploy its know-how.

EVs, too: Ceer CEO James Deluca also said demand is now for suppliers who can handle “ethical reverse engineering” to localize complex parts, not just import them. The EV maker signed 16 agreements worth SAR 3.7 bn to localize manufacturing at the forum, part and parcel of a goal to locally produce 45% of automotive materials and components by 2034, with Deluca confirming it will start manufacturing vehicles in 4Q.

Can’t forget AI: Humain took further steps towards its ambition to localize the full-stack AI capabilities. The company acquired a controlling stake in London-based sports tech company Ai.io, together establishing a new vertical called Humain Sport that will work on solutions geared towards data-driven athlete development, performance analysis, and fan engagement. Silicon Valley startup Luma AI, Humain’s entertainment and gaming partner, is also expanding into Saudi soon.

The new strategy

The forum presented a window for the PIF to test the waters, gauging investor interest and getting feedback to fine-tune the final version of its updated strategy, reported to be due this spring. The fund is set to refine its 2026-2030 investment playbook by concentrating capital on a tighter group of portfolio companies and scaling them into global champions across sectors such as manufacturing, AI, and aviation.

IN CONTEXT- Higher fiscal pressures — including lower oil prices, rising borrowing, and a widening deficit — are pushing the government to cut back on spending and prioritize time-sensitive projects and high-return sectors.

Word on the street so far: The fund reportedly plans to cut capital spending by some 15%, with new directives to prioritize projects meeting strict internal rate of return thresholds or serving a designated trophy event. Attracting capital from major global asset managers is also said to be a big focus under the new roadmap.

We got official confirmation that Neom and its futuristic city The Line are all but pushed to the bottom of the priority list, after months of media reporting delays and resizing of the flagship gogaproject. Investment Minister Khalid Al Falih said in a panel that the Kingdom is currently focusing on finishing up the infrastructure for the 2034 Fifa World Cup and the 2030 Expo, adding that “these are the priorities, and the feasibility of certain projects, such as The Line, may decline.”

Also worth noting

Roshn and Kuwaiti logistics player Agility are partnering on a new Grade A logistics park, signing a heads of terms to form a JV for the project.
Alupco inked three agreements worth SAR 1.8 bn to increase its production output, the company’s CEO Khaled Abdel Moneim told Asharq Business.

Saudi is leaking capital as expat transfers surge in 2025

Expats are sending record amounts of money out of Saudi. Personal expatriate remittances in Saudi Arabia rose 15% y-o-y in 2025, hitting SAR 165.5 bn, up from SAR 144.2 bn in 2024, according to the latest Saudi Central Bank data (pdf). Saudi nationals aren’t staying still either — their personal outward remittances ticked up 3% to reach SAR 70.4 bn for the year.

A year of sprints and peaks: February 2025 saw a massive 37% y-o-y spike, with outflows jumping to SAR 12.8 bn from SAR 9.3 bn. By March, remittances hit a peak of SAR 15.5 bn — the highest single-month level the Kingdom has seen since mid-2016.

The “leakage” problem

Why the surge? It comes down to the headcount. Since 2017, for every 10 jobs created for Saudis, 14 have gone to expats, according to Semafor. This hiring trend has caused remittances to nearly double since 2017, hitting SAR 156 bn (USD 41.6 bn) in 2Q 2025.

Cultural reforms have yet to curb outbound spending: This outflow of capital in remittances represents “leakage” — money earned in the Kingdom that vanishes from the local cycle instead of being reinvested. This is happening despite social reforms aimed at upgrading culture and entertainment to keep SAR circulating at home, the news outlet said.

How to keep the talent (and the money): Plugging the leak will depend in part on raising living standards and introducing long-term residency. However, the Kingdom currently “targets investors rather than specialized labor,” MENA economist Hamzeh Al Gaaod tells EnterpriseAM. Creating more prospects for Saudis should naturally help reduce the leakage, he said, with the next best step being to attract “expat workers willing and able to settle down in Saudi Arabia.”

The automation curveball

A new challenge is looming… the machines: A recent Pearson study revealed that 23% of jobs held by Saudi nationals are at high risk of automation. Technology is projected to be responsible for half of all local job losses for Saudi nationals, carrying a potential economic sting of SAR 31.64 bn.

Gulf’s drive toward AI sovereignty faces challenges

The Gulf’s drive toward AI sovereignty earned a spotlight from TheGuardian. The Web Summit Qatar held last week saw the GCC neighbour announce bn-USD agreements at the summit to foster tech startups, joining moves by the UAE and Saudi to prop up the national AI infrastructure.

However, the push faces hurdles, including limited access to semiconductors, shortages of local engineering talent, and relatively small volumes of Arabic-language training data. Venture capital investors remain divided on whether funding should shift toward emerging ecosystems in Europe and the Middle East or remain concentrated in Silicon Valley, where high valuations and entrenched advantages continue to attract capital.

Defense and dining

Lockheed Martin + PTS partner on Kingdom’s first PAC-3 depot

Pioneers Technical Systems (PTS) and Lockheed Martin will establish the Kingdom’s first PAC-3 ground depot, which will test, repair, and certify launcher components for the Royal Saudi Air Defense Forces’ Patriot missile defense system, according to a press release.

The details: Lockheed Martin will provide testing capabilities and train local technicians, while PTS will leverage its expertise in electronics, circuit card assemblies, and cable manufacturing. The facility is expected to reach full operational capability by 2029.

Why it matters: The depot provides the connective tissue for the USD 9 bn Patriot missile sale approved by the US State Department last month (for which Lockheed Martin is the principal contractor). As the Kingdom integrates 730 new PAC-3 MSE missiles, the Riyadh depot will likely become the regional hub for the entire platform’s lifecycle.

This is Lockheed’s second technical play in Riyadh in two weeks, following the opening of its Riyadh Software Factory.

Americana gets a taste of Lebanon

Americana Restaurants is diversifying into Arabic cuisine through the USD 20.8 mn acquisition of Lebanese quick-service restaurant brand Malak Al Tawouk, according to a press release (pdf). The transaction — expected to close by the end of this month — includes a 75-year exclusive license to develop the brand across 13 markets in the GCC, the Levant, North Africa, and Central Asia, alongside the full acquisition of the brand’s existing franchises in the UAE and Saudi Arabia.

Why it matters: The transaction marks Americana’s first move into the Arabic QSR category. By acquiring existing franchises at a 12x P/E multiple on USD 21.1 mn in annualized revenue, Americana is wagering it can grow the family-founded brand faster than its previous owners.

February sukuk round closes at SAR 7.8 bn

The Finance Ministry closed its February 2026 issuance under the government’s SAR-denominated sukuk program, raising SAR 7.8 bn, according to a statement from the National Debt Management Center.

The issuance was structured in five tranches:

A five-year tranche valued at SAR 1.2 bn, maturing in 2031;
A seven-year tranche at SAR 1.4 bn, maturing in 2033;
A 10-year tranche at SAR 1.6 bn, maturing in 2036;
A 13-year tranche at SAR 510 mn, maturing in 2039;
A 15-year tranche at SAR 3.2 bn, maturing in 2041.

Routech Express raises USD 1 mn for its tech-enabled logistics platform

Homegrown logistics tech startup Routech Express closed a USD 1 mn pre-seed round led by Q Fund, according to a press release. The funding — which included contributions from angel investors — will go toward developing the startup’s platform, carrier integrations, and expansion both within and beyond the Kingdom.

China tells its banks to rein in holdings of US Treasuries

It may sound like a geopolitical warning shot, but China’s latest directive to curb US debt holdings is better read as a risk-management exercise. Officials in Beijing have recently issued a verbal directive to major banks to limit purchases of US government bonds and trim existing holdings to reduce concentration risk, Bloomberg reports. While the headlines echo past trade-war fears of coordinated “dump the USD,” insiders and economists say the move reflects balance-sheet housekeeping rather than geopolitical escalation.

This is likely a cleanup operation, not a strategic exit, Council on Foreign Relations Senior Fellow Brad Setser told Axios. Over the past two months, Chinese exporters sold roughly USD 100 bn per month to state-owned banks, which in turn parked much of that inflow in US Treasuries, creating a lopsided risk profile that Chinese regulators are now seeking to rebalance, Setser noted.

The move was framed around diversification rather than concerns over US creditworthiness, helping explain the muted market reaction. Treasury yields ticked slightly higher, but volatility measures are setting near five-year lows, signaling limited investor alarm.

While commercial banks clean up their books, longer-term data point to a broader shift in who holds America’s debt. China’s official Treasury holdings have fallen to USD 683 bn — their lowest level since 2008 — dropping the country to third place behind Japan and the UK.

But analysts say that this does not amount to a full retreat. Holdings in custodial accounts in Belgium — often seen as a proxy for Chinese holdings — have quadrupled since 2017 to USD 481 bn. At the same time, total foreign holdings of US treasuries climbed to a record USD 9.4 bn in November, underscoring continued global demand for USD assets.

The diplomatic backdrop reinforces the view that the financial directive is not a signal of escalating hostilities. US Treasury staff were in China last week to strengthen communication channels ahead of a planned meeting between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, Reuters reports. Those talks are setting the stage for a potential summit between Donald Trump and Xi Jinping in Beijing as early as April.

MARKETS THIS MORNING-

Markets this morning are reacting to US retail sales figures, which came in lower than expected. Meanwhile, Asia-Pacific markets appear to be nearing the end of their almost-weeklong rally triggered by Japan’s election, posting softer gains in early trading this morning. The Nikkei is closed today as Japan celebrates National Foundation Day.

TASI	11,214	+0.2% (YTD: +6.9%)
MSCI Tadawul 30	1,512	+0.2% (YTD: +9.0%)
NomuC	23,640	-0.1% (YTD: +1.5%)
USD : SAR (SAMA)	USD 3.75 Sell	USD 3.75 Buy
Interest rates	4.25% repo	3.75% reverse repo
EGX30	50,376	+0.2% (YTD: +20.4%)
ADX	10,651	+0.2% (YTD: +6.6%)
DFM	6,772	0.0% (YTD: +12.1%)
S&P 500	6,942	-0.3% (YTD: +1.4%)
FTSE 100	10,354	-0.3% (YTD: +4.3%)
Euro Stoxx 50	6,047	-0.2% (YTD: +4.4%)
Brent crude	USD 69.08	+0.1%
Natural gas (Nymex)	USD 3.15	+0.3%
Gold	USD 5,045	-0.7%
BTC	USD 68,641	-2.5% (YTD: -21.7%)
Sukuk/bond market index	921.04	+0.3% (YTD: +0.2%)
S&P MENA Bond & Sukuk	152.1	+0.1% (YTD: +0.1%)
VIX (Volatility Index)	17.79	+2.5% (YTD: +19.5%)

THE CLOSING BELL: TADAWUL-

The TASI rose 0.2% yesterday on turnover of SAR 4.5 bn. The index is up 6.9% YTD.

In the green: MBC Group (+10.0%), Americana (+9.5%), and Nayifat (+6.8%).

In the red: CGS (-10.0%), Thimar (-5.0%), and Alkhathiri (-4.1%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.1% yesterday on turnover of SAR 13.2 mn. The index is up 1.5% YTD.

In the green: Arabica Star (+6.6%), Paper Home (+5.4%), and Jamjoom Fashion (+5.4%).

In the red: Alqemam (-9.3%), Altwijri (-8.8%) and iOud (-7.8%).

CALENDAR

FEBRUARY

2-13 February (Monday-Friday): Asian Road Cycling Championship and Paralympic Cycling, Qassim.

8-12 February (Sunday-Thursday): World Defense Show, Riyadh International Convention and Exhibition Center, Riyadh.

9-14 February (Monday-Saturday): Asian Racing Conference, Crowne Plaza Riyadh RDC Hotel & Convention Center, Riyadh.

11 February (Wednesday) Digital Transformation Summit Saudi Arabia (DTS), Riyadh.

11-14 February (Wednesday-Saturday): JeddaDerm, Hilton Hotel, Jeddah.

13-14 February (Friday-Saturday): Jeddah E-Prix, Jeddah.

15-17 February (Sunday-Tuesday): The World Advanced Manufacturing & Logistics Saudi Expo, Riyadh Front Exhibition & Conference Center.

16 February (Monday): King Salman Stadium design-and-build contract prequalification submission deadline.

16 February (Monday): First day of Ramadan (TBC).

22 February (Sunday): Founding Day.

26 February (Thursday): Title deed registration deadline for 142.8k properties across 104 neighborhoods in Hail.

MARCH

12 March (Thursday): Deadline for real estate registration for 253.2k properties in 499 neighborhoods across Riyadh, Qassim, Makkah, and Hail.

18-23 March (Tuesday-Monday): Eid Al-Fitr holiday (TBC).

21 March (Saturday): Fanatics Flag Football Classic, Kingdom Arena, Riyadh.

31 March (Tuesday): Zatca’s 23rd E-invoicing integration wave deadline.

APRIL

6 April (Monday): Procurement and Supply Chain Futures Forum, Al Faisaliah Hotel, Riyadh.

6-7 April (Monday-Tuesday): Real Estate Supply Chain Forum, Mandarin Oriental Al Faisaliah Hotel, Riyadh.

12-15 April (Sunday-Wednesday): Saudi Print & Pack, Riyadh International Convention & Exhibition Center.

12-15 April (Sunday-Wednesday): Riyadh International Industry Week, Riyadh International Convention & Exhibition Center.

12-15 April (Sunday-Wednesday): Saudi Plastics & Petrochem, Riyadh International Convention & Exhibition Center.

12-15 April (Sunday-Wednesday): Saudi Smart Logistics, Riyadh International Convention & Exhibition Center.

13-16 April (Monday-Thursday): Leap Tech Conference, Riyadh Exhibition & Convention Center – Malham.

20-22 April (Monday-Wednesday): The Future Hospitality Summit, Mandarin Oriental Al Faisaliah Hotel, Riyadh.

20-22 April (Monday-Wednesday): Saudi Paper and Packaging Expo, Riyadh International Convention & Exhibition Center.

20-22 April (Monday-Wednesday): Sports Investment Forum (SIF), Riyadh

22-23 April (Wednesday-Thursday): The World Economic Forum’s Global Collaboration and Growth Meeting, Jeddah.

27-29 April (Monday-Wednesday): Aluminum Arabia, The Arena, Riyadh.

28 April (Tuesday): GC Summit Saudi Arabia, Riyadh.

MAY

3-9 May (Sunday-Sunday): The Global Sustainability Expo, The Arena Riyadh Venue.

5-6 May (Tuesday-Wednesday): SkyMove Air Cargo MENA, Riyadh.

24-28 May (Sunday-Thursday): Eid al-Adha holiday.

JUNE

21-24 June (Sunday-Wednesday): Saudi Food Exhibition and Conference, Riyadh Front Expo.

SEPTEMBER

15-17 September (Tuesday-Thursday) The Global AI Summit, King Abdulaziz International Convention Center, Riyadh.

23 September (Wednesday): Saudi National Day.

OCTOBER

12-15 October (Monday-Thursday): World Energy Congress, Riyadh.

Signposted to happen sometime in 2026:

2H: Sabic’s USD 6.4 bn Fujian project in China to start production;
November: The UN Trade and Development Global Supply Chain Forum to take place in Saudi Arabia;
November: The Esports Nations Cup, Riyadh;
The Intervision international music competition will take place in Saudi Arabia;
6 July-23 August (Monday-Sunday): Esports World Cup, Riyadh.

Signposted to happen sometime in 2027:

The World Water Forum takes place in Riyadh;
The Ocean Race finishes in Amaala on the Red Sea;
Riyadh-Kudmi transmission line to be completed.

Signposted to happen sometime in 2Q 2027:

The Hail Region Water Networks Project is expected to be completed.

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Saudi-US consortium eyes major energy blocks in Syria?