Closing Bell: Saudi main index edges down to close at 11,694

JEDDAH: Riyadh has unveiled new investment opportunities for 2025, covering commercial, residential, retail, industrial, and leisure projects to boost the city’s economy and development. 

The Riyadh municipality introduced 20 new investment prospects, covering more than 175,000 sq. meters across over 20 sites. These include mixed-use developments, existing retail spaces, mobile sports clubs, and areas allocated for concrete and construction material factories — along with a cafe and ATM setup. 

Investors can access the projects through the Furas online platform, designed as the municipality’s primary hub for real estate and municipal investment opportunities, the Saudi Press Agency reported. 

The initiative is part of a broader strategy to accelerate private sector participation in urban development, aligning with Saudi Arabia’s Vision 2030. 

“This step comes as an extension of the Riyadh municipality’s strategy to enhance the role of the private sector in urban development, by enabling it to participate effectively in developing facilities and services, and achieving integration between government and investment efforts to meet the needs of society,” the SPA report stated.  

“It also contributes to raising the quality of urban life and achieving the goals of the Kingdom's Vision 2030,” it added.  

Contracts for the investment sites range from five to 25 years, covering multiple districts across Riyadh. Key locations include Jarir, Al-Deerah, and Al-Rawdah, alongside Al-Basateen, Al-Qadisiyah, and Al-Jazirah. 

Additional areas feature Al-Hamra, Al-Morouj, and Al-Yamamah, as well as Eastern Suwaidi, Al-Masha’il, Al-Manakh, Badr, and Taybah. 

Investors are invited to review competition requirements and the application process via a dedicated link, with the envelope opening set for May 2025. 

In a parallel push to enhance the capital’s livability, 87 new parks were inaugurated over the last three years — raising the city’s total to over 700, up from 615. The parks cover more than 745,000 sq. meters, featuring nearly 25,000 shrubs and 7,000 trees planted across different districts to ensure equitable access to green spaces. 

The parks now serve as dynamic community hubs, hosting cultural, social, entertainment, and sporting activities. The move underscores Riyadh Municipality’s commitment to improving quality of life, fostering social cohesion, and advancing Vision 2030’s urban sustainability goals. 

With these investments and infrastructure developments, Riyadh is positioning itself as a leading model for vibrant, sustainable urban growth in the region. 

RIYADH: Saudi Arabia’s sovereign wealth fund and five of its regional counterparts are on track to control $18 trillion in assets by 2030, marking a 50 percent surge from the end of 2024, according to an analysis.  

In its latest report, Deloitte Middle East noted that the region, home to six of the world’s 10 largest sovereign funds, now holds approximately 40 percent of global SWF assets — solidifying its position as a dominant force in the market.  

The study aligns with the latest report from the Sovereign Wealth Fund Institute, which ranks Saudi Arabia’s Public Investment Fund sixth globally, managing $925 billion. The Abu Dhabi Investment Authority leads the Gulf with $1.05 trillion, followed by the Kuwait Investment Authority at $1.02 trillion and the Qatar Investment Authority with $526 billion. 

Julie Kassab, sovereign wealth fund leader at Deloitte Middle East, said: “The Gulf region continues to be the epicenter of sovereign wealth fund activity, with its major players driving innovation in investment strategies and operational excellence.” 

She added: “We are witnessing these funds not only expand their geographical footprint but also significantly enhance their internal capabilities, setting new standards for the industry in terms of performance and governance.” 

The report also highlighted that Gulf SWFs maintained an “aggressive investment pace,” deploying $82 billion in 2023 and an additional $55 billion in the first nine months of 2024. 

Deloitte listed five major players shaping the region’s investment landscape: Saudi Arabia’s PIF, ADIA, Abu Dhabi’s Mubadala, Abu Dhabi Developmental Holding Co., and QIA. 

Globally, the total number of sovereign wealth funds has nearly tripled since 2000, reaching approximately 160-170 funds, with 13 new ones established between 2020 and 2023. 

Asia takes center stage 

Deloitte’s analysis highlights key trends reshaping the regional SWF landscape, with funds increasingly focusing on fast-growing countries outside traditional Western markets. 

The report revealed that Gulf SWFs strategically prioritize Asia, with many establishing new offices throughout the Asia-Pacific region and significantly increasing allocations to high-growth economies, including China and India. 

Wealth funds in the Gulf region were particularly active in China, investing approximately $9.5 billion in the Asian giant during the first nine months of 2024. 

Abu Dhabi Investment Authority and Kuwait Investment Authority ranked among the top 10 shareholders in Chinese A-share listed firms. 

“This represents a strategic opportunity as Western investors reduce their exposure, allowing Middle Eastern funds to leverage their strong political and trade relationships with Beijing,” Deloitte noted. 

The report added that Gulf wealth funds are also eyeing Africa, particularly the mining industry, for new opportunities. 

This year, the UAE and Saudi Arabia have shown a willingness to invest in high-risk extractive ventures in Africa, both directly and through stakes in multinational mining companies. 

This shift coincides with the rise of new investment vehicles, particularly “Royal Private Offices,” which now control an estimated $500 billion in assets. 

Combating challenges 

Wealth funds in the Gulf region are under increasing pressure to sharpen their competitive edge, focusing on internal performance, risk oversight, and investment management to deliver stronger returns, the analysis stated. 

The report noted that many regional wealth funds are becoming more proactive — showing greater openness to divestment, demanding better reporting from portfolio companies, and exerting more influence at the board level.  

The study added that this drive for excellence has intensified competition for human capital among these funds, with soaring demand for experienced national talent. 

“Gulf SWFs now employ an estimated 9,000 professionals across their operations. Gulf funds are offering increasingly attractive packages to senior professionals, particularly those with experience at established funds like Singapore’s Temasek or Canada’s Maple Eight,” Deloitte stated. 

The consulting firm added that Gulf governments are also reassessing their approach to strategic assets. This has led to the creation of new, domestically focused funds designed to co-invest alongside international partners rather than compete directly with established regional players. 

It concluded: “Looking ahead, while geopolitical uncertainties and potential commodity price fluctuations may create headwinds, these pressures could drive greater efficiency and innovation in fund management practices.”