{"id":109338,"date":"2026-05-31T00:00:00","date_gmt":"2026-05-31T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/?p=109338"},"modified":"2026-05-31T03:46:00","modified_gmt":"2026-05-31T03:46:00","slug":"this-morning-pif-is-mulling-a-new-logistics-champion","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2026\/05\/31\/this-morning-pif-is-mulling-a-new-logistics-champion\/","title":{"rendered":"THIS MORNING: PIF is mulling a new logistics champion"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.1500000000000001;orphans:2;widows:2;text-align:left\"><strong>Good morning, wonderful people<\/strong>. We are back in your inbox after what we hope was a relaxing long Eid vacation for you and your loved ones.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.1500000000000001;orphans:2;widows:2;text-align:left\"><strong>Bad news first: <\/strong>The uneasy standoff between the US and Iran has not yielded a deal yet, and it\u2019s anybody\u2019s guess whether the fighting will continue at this point.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.1500000000000001;orphans:2;widows:2;text-align:left\"><strong>The good news? <\/strong>Moody\u2019s gave the Kingdom\u2019s credit a clean bill of health, citing steadier government finances and diversification efforts that keep widening the non-oil base. We have more on this in today\u2019s news well, below.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.1500000000000001;orphans:2;widows:2;text-align:left\"><strong>Also in today\u2019s issue: <\/strong>Aramco exited a USD 7 bn downstream partnership in Malaysia to free up liquidity, and our latest trade figures from Gastat are out. Let\u2019s dive in.<\/p>\n<p class=\"tag-border-left\"> Watch this space<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong><a id=\"wwtt1\"><\/a> PIF WATCH \u2014<\/strong> <strong>The Public Investment Fund<\/strong><strong> is exploring the creation of a multi-bn USD <\/strong><strong>national logistics champion<\/strong>, unnamed sources told <a target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2026-05-21\/saudi-1-trillion-wealth-fund-weighs-creating-a-logistics-giant\" style=\"\">Bloomberg<\/a>. The new entity will combine parts of its ports, rail, and shipping portfolio into a single platform that could potentially become a sizable vehicle deploying investments across the sector.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>What we know so far:<\/strong> The proposal could eventually pave the way for external capital, with the PIF considering bringing in international investors and pursuing an IPO at a later stage. Talks remain in their early stages, with no final decisions taken on the structure of the entity or the assets that would be included.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Why it matters:<\/strong> The ongoing disruptions to regional trade routes highlighted the importance of the Kingdom\u2019s alternative logistics corridors, including the Red Sea ports. The consolidated firm would work on Saudi\u2019s supply chain network, opening new trade routes, creating new investment opportunities, reducing reliance on the Strait, and avoiding future disruptions, the business information service reported.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>It\u2019s all part of the fund\u2019s strategy for the next five years:<\/strong> PIF\u2019s 2026-2030 strategy <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/ksa\/2026\/04\/16\/this-morning-pifs-five-year-strategy-inches-closer-to-the-light\/\" style=\"\">prioritizes<\/a> nurturing businesses capable of generating sustainable returns and turning portfolio companies into global champions. Priority sectors singled out for focus include logistics and infrastructure.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<hr style=\"height:2px;border-width:0;color:gray;background-color:gray\">\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong><a id=\"wwtt2\"><\/a> OIL \u2014<\/strong> <strong>More price cuts for Asian-bound oil?<\/strong> Saudi Arabia is expected to cut July crude prices for Asian buyers by USD 3-8 \/ bbl, marking the <a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/ksa\/2026\/04\/29\/saudi-arabia-to-cut-oil-prices-for-asia\/\" style=\"\">second consecutive month<\/a> of price cuts, according to a <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/business\/energy\/saudi-arabia-may-lower-july-oil-prices-asia-demand-weakens-2026-05-29\/\" style=\"\">Reuters<\/a> survey. Flagship Arab Light crude is set to come down to a premium of USD 7.5-12.5 \/ bbl above Dubai and Oman average quotes.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The price cuts come as the Asian spot market cools down fast<\/strong>. The premium for Dubai crude collapsed by nearly 40% in May, dropping to an average of USD 8.90 \/ bbl from over USD 13 in April.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Why this matters:<\/strong> The Kingdom is trying to protect its market share as major buyers pull back. Chinese refiners \u2014 our biggest customers \u2014 slashed their oil purchases in May and June after getting squeezed by poor refining margins. Meanwhile, global supply pressure is easing as the US has exported more oil to cover Middle East shortfalls, and growing hopes of a US-Iran deal to reopen the Strait of Hormuz have pushed global prices below USD 100 per barrel.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<hr style=\"height:2px;border-width:0;color:gray;background-color:gray\">\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong><a id=\"wwtt3\"><\/a> INFRASTRUCTURE \u2014 Making Riyadh cooler<\/strong>: Saudi is set to begin implementing the Riyadh cooling project next year, unnamed sources told <a target=\"_blank\" href=\"https:\/\/www.aleqt.com\/%D8%A7%D9%84%D8%A3%D8%AE%D8%A8%D8%A7%D8%B1\/%D8%A7%D9%86%D8%B7%D9%84%D8%A7%D9%82-%D9%85%D8%B4%D8%B1%D9%88%D8%B9-%D8%AA%D8%A8%D8%B1%D9%8A%D8%AF-%D8%A7%D9%84%D8%B1%D9%8A%D8%A7%D8%B6-%D8%A7%D9%84%D8%B9%D8%A7%D9%85-%D8%A7%D9%84%D9%85%D9%82%D8%A8%D9%84-%D8%A8%D9%82%D9%86%D9%88%D8%A7%D8%AA-%D9%85%D8%A7%D8%A6%D9%8A%D8%A9-%D9%84%D8%AE%D9%81%D8%B6-%D8%A7%D9%84%D8%AD%D8%B1%D8%A7%D8%B1%D8%A9-15-%D8%AF%D8%B1%D8%AC%D8%A9-10143\" style=\"\">Aleqtisadiah<\/a>. Greece-based consulting firm <a target=\"_blank\" href=\"https:\/\/www.planet.gr\/\" style=\"\">Planet<\/a> is <a target=\"_blank\" href=\"https:\/\/www.zawya.com\/en\/projects\/industry\/saudi-arabia-appoints-greek-firm-planet-to-lead-riyadh-cooling-project-ffjow2wx\" style=\"\">appointed as a lead consultant<\/a> for the project, which aims to reduce the temperatures of asphalt surfaces and building facades by 8-15 degrees across the capital.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The details:<\/strong> The cooling project will identify the areas most affected by rising temperatures based on factors, including building density, facade materials, and the availability of open spaces. Five pilot zones have already been selected to test and evaluate cooling solutions, the sources said. The proposed cooling methods include heat-reflective road materials, upgraded pedestrian surfaces, open water channels, evaporation ponds, and additional landscaping. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">Data point<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>2.4% \u2014 that\u2019s how much the <\/strong><strong>Construction <\/strong><strong>Cost Index (CCI) rose y-o-y in April 2026<\/strong>, the highest increase since Gastat started collecting <a target=\"_blank\" href=\"https:\/\/ent.news\/2026\/5\/1478.pdf\" style=\"\">data (pdf)<\/a> in January 2024. Construction costs increased 2.7% y-o-y for the non-residential sector and 2.4% y-o-y for the residential sector, driven by sharp spikes in the cost of renting equipment and machinery, as well as rising labor and energy costs. On a monthly basis, overall construction costs ticked up 0.5% compared to March.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">Entertainment<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The holiday was an eventful week for entertainment and sports<\/strong>: The Eid brought Arab cinema's most expensive bet to the big screen. 7 Dogs landed across Saudi, Egyptian and Gulf theaters on Wednesday, opening in more than 600 regional cinemas on a reported USD 40 mn budget that makes it the priciest Arabic-language film ever made. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>ALSO- Ronaldo finally has his Saudi Pro League winner's medal<\/strong>, after Al Nassr's 4-1 win over Damac just before the holiday sealed the club's first league title since 2019. Ronaldo, 41, hadn't lifted major club silverware since his 2020 Serie A title with Juventus, and will be heading off to chase the one trophy still missing from his cabinet at this summer's World Cup.<\/p>\n<div class=\"row\">\n<div class=\"col-md-12 subscribe-box-panel\">\n<div class=\"\">\n<div class=\"title\">\n<h4 class=\"fw-lighter mb-10\">   Get <b style=\"font-weight: 700\">Enterprise<\/b> daily   <\/h4>\n<\/p><\/div>\n<p class=\"mb-10\">The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.<\/p>\n<p>  <a target=\"_blank\" href=\"ksa\/en\/user\/NewsLetters\" class=\"btn-green px-3 d-flex align-items-center\">Subscribe here<\/a>  <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>***<\/strong><strong>You\u2019re reading EnterpriseAM Saudi<\/strong>, your essential daily roundup of business, economics, and must-read news about Saudi, delivered straight to your inbox. We\u2019re out Sunday through Thursday by 7am Riyadh time.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>EnterpriseAM Saudi is available without charge <\/strong>thanks to the generous support of our friends at Tas\u2019heel and Hassan Allam Properties.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Want to send us a story idea<\/strong>, request coverage, ask for a correction, or otherwise get in touch? Reach out to us on <a target=\"_blank\" href=\"mailto:climate@enterprisemea.com\" style=\"\">saudi@enterpriseAM.com<\/a>.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>DID YOU KNOW <\/strong>that we also cover <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\" style=\"\">Egypt<\/a>, <a target=\"_blank\" href=\"https:\/\/enterprise.news\/uae\/en\" style=\"\">the UAE<\/a>, the MENA <a target=\"_blank\" href=\"https:\/\/enterprise.news\/logistics\/en\" style=\"\">logistics<\/a> industry, and the <a target=\"_blank\" href=\"https:\/\/enterprise.news\/mena-india\/en\" style=\"\"><\/a><a target=\"_blank\" href=\"https:\/\/enterprise.news\/mena-india\/en\" style=\"\">MENA <> India<\/a> corridor?<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Were you forwarded this email? <\/strong><a target=\"_blank\" href=\"https:\/\/enterpriseam.com\/ksa\/newsletters\/\" style=\"\">Tap or click here<\/a> to get your own copy of EnterpriseAM Saudi delivered every weekday.<br \/><strong>***<\/strong><\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\">\n<p class=\"tag-border-left\">The big story abroad <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The on-again, off-again US-Iran deal is back in limbo<\/strong>. A framework to wind down the war that looked all but done midweek wobbled over the weekend after President Trump <a target=\"_blank\" href=\"https:\/\/www.nytimes.com\/2026\/05\/30\/us\/politics\/trump-iran-peace-framework.html\" style=\"\">sent tougher terms back to Tehran<\/a>, reportedly balking at language that would unfreeze Iranian funds. A deal that would extend the ceasefire by 60 days and see Iran lift its blockade on the strait is <a target=\"_blank\" href=\"https:\/\/www.bbc.com\/news\/articles\/c87qng40wz9o\" style=\"\">\u201cvery close\u201d but \u201cnot there yet<\/a>,\u201d VP JD Vance said, with negotiators still stuck on the enrichment question.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The military track hasn't paused for the diplomacy<\/strong>. Defense Secretary Pete Hegseth said the US is <a target=\"_blank\" href=\"https:\/\/www.reuters.com\/world\/asia-pacific\/pentagon-chief-says-us-ready-restart-strikes-iran-if-no-deal-2026-05-30\/\" style=\"\">\u201cmore than capable\u201d<\/a> of restarting strikes if talks collapse, and US forces <a target=\"_blank\" href=\"https:\/\/apnews.com\/article\/iran-united-states-war-hormuz-ceasefire-aeea91e1d1682e7e22321512e6e4aa35\" style=\"\">disabled another merchant vessel<\/a> as it tried to run the blockade toward an Iranian port.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>Threats were also flung against an unlikely target<\/strong>: Trump responded to a question about Oman and Iran jointly overseeing the strait, <a target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2026\/05\/29\/oman-trump-sanctions-iran-war-bessent.html\" style=\"\">saying<\/a> Oman would \u201cbehave just like everybody else, or we'll have to blow them up,\u201d while the Treasury Department warned the US could \u201caggressively\u201d sanction the sultanate.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>The wider regional picture isn\u2019t cooling either<\/strong>. Israel <a target=\"_blank\" href=\"https:\/\/www.semafor.com\/article\/05\/29\/2026\/israel-expands-its-control-over-gaza-launches-strikes-on-beirut\" style=\"\">expanded its ground operations in<\/a><a target=\"_blank\" href=\"https:\/\/www.semafor.com\/article\/05\/29\/2026\/israel-expands-its-control-over-gaza-launches-strikes-on-beirut\" style=\"\">Gaza<\/a> and struck southern Beirut over the weekend, with Prime Minister Netanyahu pressing offensives against Hamas and Hezbollah ahead of elections due by October.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>MEANWHILE- Markets are partying right through everything:<\/strong> Brent Crude settled slightly above USD 91 on Friday, softer on the week as traders priced in the now-in-question deal. Meanwhile, US stocks <a target=\"_blank\" href=\"https:\/\/apnews.com\/article\/stocks-markets-oil-iran-trump-hormuz-68f9166e428621a5b3349d2d2aea34b5\" style=\"\">closed out a record May<\/a>, with the S&P 500 up 5.1% on the month and a fourth straight all-time high on Friday. The tech rally powered the rise, led by Dell which jumped 32.8% on blowout AI-demand guidance.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>ALSO- Boardroom drama at BP<\/strong>: Ousted chair Albert Manifold <a target=\"_blank\" href=\"https:\/\/www.semafor.com\/article\/05\/28\/2026\/bps-ousted-chair-to-challenge-accusations\" style=\"\">says he\u2019ll challenge the<\/a><a target=\"_blank\" href=\"https:\/\/www.semafor.com\/article\/05\/28\/2026\/bps-ousted-chair-to-challenge-accusations\" style=\"\">accusations<\/a> behind his abrupt exit after reports of bullying complaints. The ouster leaves the company on its third chair and third CEO in three years.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>OVER IN TECH WORLD- SoftBank is planting its flag in Europe<\/strong>. Masayoshi Son's group <a target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/1022f9bd-5b6d-44a5-9303-c8b05b8c6463\" style=\"\">pledged<\/a><a target=\"_blank\" href=\"https:\/\/www.ft.com\/content\/1022f9bd-5b6d-44a5-9303-c8b05b8c6463\" style=\"\">up to EUR 75 bn<\/a> to build what would be the continent's largest AI data-center complex in France \u2014 a 5 GW build roughly equivalent to New York City's peak demand.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong>AND- <\/strong>Anthropic became the world\u2019s highest-valued startup after raising USD 65 bn on Thursday. <strong>We have more details in today\u2019s Planet Finance, below.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PLUS: More price cuts for Asian-bound oil?<\/p>\n","protected":false},"author":1,"featured_media":109339,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2540],"tags":[10,154,9],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-109338","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-what-were-tracking-today","tag-enterpriseam-ksa","tag-pif","tag-what-were-tracking-today","wpautop","entry"],"acf":{"mongo_id":"c79383a7-b113-4212-b4f1-1eb6b5ebad8e","order":"2","is_powered_by":false,"story_type":"4","photo_url":"https:\/\/ent.news\/2026\/1\/870.jpg","photo_position":"above","homepage_title":"","full_issue_title":"PIF is mulling a new logistics champion","related_issue":[109336],"teaser":"PLUS: More price cuts for Asian-bound oil?"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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