Saudi Arabia’s non-profit sector tops $26bn in economic contribution for the 1st time

RIYADH: US private equity firm Warburg Pincus is exploring financial opportunities in Saudi Arabia through an agreement signed with Hassana Investment Co., reinforcing their strategic partnership. 

According to a press release, the alliance aims to strengthen the two firms’ commitment to identifying and investing in high-growth sectors across various asset classes.

Many US businesses are exploring investment opportunities in Saudi Arabia, driven by the Kingdom’s expanding sectors, such as energy, tourism, and healthcare. 

With $7 trillion in government spending planned for Vision 2030 projects, the nation offers significant potential for US companies looking to expand and invest. 

“Through this collaboration, both firms will leverage their respective expertise to explore and execute investment opportunities that contribute to the Kingdom’s long-term economic growth,” the statement said.

The memorandum of understanding was signed during a roundtable discussion held at the Ministry of Investment and attended by the Assistant Minister, Chief Investment Officer for Regional Markets at Hassana, and CEO of Warburg Pincus.

Hani Al-Jehani, chief investment officer for International Markets at Hassana, said: “Our relationship with Warburg Pincus in international markets is a decade-long partnership, and we look forward to extending the partnership to consider potential opportunities in the Kingdom of Saudi Arabia.”

Al-Jehani noted that Warburg Pincus has “deep expertise” in several domains that align with the economic goals of the Kingdom and is entrusted by limited partners globally to manage their assets. 

“At Hassana, we look forward to expanding our cooperation to explore potential investment opportunities in the Kingdom, as it is witnessing economic transformations that reflect the objectives of Saudi Vision 2030, contributing to creating an attractive investment environment for local and international investors,” he added. 

CEO of Warburg Pincus, Jeffrey Perlman, added: “We see incredible investing opportunities in the Middle East. This agreement reflects our shared commitment to support growth in the Kingdom of Saudi Arabia.”

Perlman emphasized that the partnership deepens the relationships between the two regional firms and allows them to identify strong investment opportunities and management teams “looking for their next chapter of growth.”

Hassana Investment Co. is the investment manager for the General Organization for Social Insurance in Saudi Arabia. Managing one of the world’s largest pension funds with over SR1.2 trillion ($300 billion) in assets, Hassana focuses on long-term growth strategies to secure future retirement pensions for Saudi generations.

Founded in 1966, Warburg Pincus has $86 billion in assets under management and more than 230 active portfolio companies across various stages, sectors, and geographies, according to the press release.

RIYADH: The UAE witnessed a 3.8 percent annual expansion in its gross domestic product in the first nine months of 2024, driven by the growth of the Emirates’ non-oil sector. 

Also during this period, the UAE’s non-oil economy grew by 4.5 percent year on year to 987 billion dirhams ($268.74 billion), the state news agency WAM reported. 

The report added that the contribution of non-oil activities to UAE’s real GDP reached 74.6 percent by the end of the first nine months of 2024, while oil-related activities contributed 25.4 percent. 

The growth of the non-oil sector in the UAE aligns with the broader trend in the Middle East region, where countries such as Saudi Arabia are pursuing economic diversification programs. 

Abdullah bin Touq Al Marri, UAE’s minister of economy, said that the continuous growth of the country’s economy reaffirms the success of the Emirates’ economic policies and strategies to enhance diversification. 

He added that the country also facilitates a friendly environment for business activities and promotes the expansion of new economic sectors as a key driver for sustainable economic and social development.

An analysis by the Central Bank of UAE in December said that the country’s GDP is expected to post a growth of 4 percent in 2024, driven by strong performance across key non-oil sectors, including tourism, transportation, and financial services, as well as insurance, construction, real estate, and communications. 

CBUAE added that the Emirates’ economic growth is projected to accelerate further to 4.5 percent in 2025 and 5.5 percent in 2026. 

The apex financial institution further said that the UAE’s non-oil GDP is projected to expand by 4.9 percent in 2024 and 5 percent in 2025.

The study attributed this projected boost to strategic government policies aimed at attracting foreign investment and promoting economic diversification.

In terms of the economic growth in the region, data released by Bahrain’s Information & eGovernment Authority in January revealed that the country’s GDP witnessed an increased rate of 2.1 percent in the third quarter of 2024 compared to the same period in 2023. 

In December, Qatar’s National Planning Center revealed that the country’s GDP rose by 2 percent in the third quarter of 2024 compared to the same period in the previous year. 

Earlier this month, the Saudi Arabia’s General Authority for Statistics revealed that the nation’s non-oil exports increased by 17.3 percent in the fourth quarter 2024 to reach SR82.05 billion ($21.88 billion).