{"id":108557,"date":"2026-05-07T00:00:00","date_gmt":"2026-05-07T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/?p=108557"},"modified":"2026-05-07T03:19:11","modified_gmt":"2026-05-07T03:19:11","slug":"this-morning-pif-reportedly-sets-up-second-office-in-china","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2026\/05\/07\/this-morning-pif-reportedly-sets-up-second-office-in-china\/","title":{"rendered":"THIS MORNING: PIF reportedly sets up second office in China"},"content":{"rendered":"

Good morning, wonderful people<\/strong>. Our budget deficit ballooned in the first quarter to its highest level in 8 years and the second-highest on record. Revenue was barely affected, though. The culprit was the government shoring up spending on subsidies and grant to get in front of the war\u2019s impact \u2014 as well as a hike in defense spending (for obvious reasons). We have the breakdown in today\u2019s news well below.<\/p>\n

ALSO- <\/strong>Another big healthcare consolidation move saw Fakeeh Care snap up 100% of Al Fagih Hospital, Saudi VCs are stepping up as global and regional investors remain cautious, and 1Q earnings are out from Saudi Energy, Savola, and more. Let\u2019s dive in.<\/p>\n

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Riyadh to Mumbai. Abu Dhabi to Singapore. Dubai to London. Cairo to Shenzhen.<\/strong><\/p>\n

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<\/a> INVESTMENT \u2014 <\/strong>The Public Investment Fund (PIF)<\/strong> is reportedly expanding its physical <\/strong>footprint in China with a new office in Shanghai<\/strong>, unnamed sources told Bloomberg<\/a>. Registered last year, the office operates under the fund\u2019s Beijing hub and aims to support outbound agreements in China while also helping attract Chinese investment into Saudi Arabia, the sources said. <\/p>\n

Why it matters: <\/strong>Although the international share of PIF\u2019s international portfolio allocations has been limited to 20%<\/a> as domestic spending ramps up, PIF Governor Yasir Al Rumayyan said the composition of overseas investments is shifting toward sectors such as global equities, infrastructure, technology, aerospace, and gaming \u2014 areas where China excels.<\/p>\n

Our take: <\/strong>The Shanghai expansion points to a more transactional phase in Saudi-China investment ties, with growing scope for capital-for-localization that follows the example of PIF\u2019s Lenovo investment and its subsequent Saudi manufacturing facility<\/a>. <\/p>\n

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Data point<\/p>\n

<\/a> SAR 470 bn \u2014 that\u2019s the <\/strong>financing provided<\/a><\/strong> to the Kingdom\u2019s MSMEs by the <\/strong>end of 2025<\/strong>, up 33% y-o-y, Sama\u2019s Executive Director of Non-Banking Financial Institutions Control Bader Alotaibi said. Outstanding MSME financing reached a record<\/a> 11.6% of the total financing portfolio, with average growth of 27% over the past three years.<\/p>\n

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The big story abroad <\/p>\n

<\/a> Mixed messaging over the US-Iran negotiations continues this morning<\/strong>, with President Trump vowing<\/a> to bomb Tehran \u201cat a much higher level\u201d if an agreement isn\u2019t reached soon. Trump\u2019s post came after media reports<\/a> of the two sides inching closer to ending the war and setting a framework for nuclear negotiations, with Iran\u2019s response expected through Pakistani mediators by Thursday\u2019s end.<\/p>\n

Meanwhile, ceasefires seem to be shaking everywhere: <\/strong>Israel targeted an elite Hezbollah commander, its first strike<\/a> on Beirut\u2019s suburbs since the ceasefire in Lebanon. An attack on the Gaza Strip also targeted<\/a> the son of Hamas\u2019 chief Khalil Al Haia amid a renewed bombing campaign.<\/p>\n

Over in the tech world: <\/strong>A tie-up between Anthropic and SpaceX will give the AI lab access<\/a> to the Colossus 1 data center \u2014 and see the two explore opportunities<\/a> for building data centers in space. <\/p>\n

Also worth reading this morning:<\/strong><\/p>\n