Arab News, Thu, Mar 21, 2024 | Ramadan 11, 1445
The Arab Energy Fund reports highest-ever net income of $225m
Saudi Arabia:
The Arab Energy Fund’s net income reached an all-time high of $225 million in
2023, marking a 51 percent increase driven by asset growth and a favorable
interest environment.
According to a statement, this yearly rise was
also attributed to the optimization of the institution’s funding and liquidity
profiles, effective cost management and lending portfolio diversification.
The announcement further noted that TAEF also
witnessed a capital gain of $20.6 million in 2023, while its total assets grew
by 12 percent year-on-year to $9.88 billion.
It was during COP28 in Dubai in 2023 that Arab
Petroleum Investments Corp., a multilateral impact financial institution focused
on the energy sector in the Middle East and North Africa region, rebranded
itself as the Arab Energy Fund.
Khalid Ali Al-Ruwaigh, CEO of TAEF, said: “The
record financial results come at the end to a transformative year for the Arab
Energy Fund. In addition to launching our new trademark name and strategy and
relocating to Riyadh, we recorded our highest-ever net income in our 50-year
history.”
He added: “Guided by our new five-year strategy,
we continue to build a solid foundation for the future by aligning our debt and
equity portfolios and innovative solutions with our vision of becoming a
pre-eminent impact investor in the MENA region and support a more sustainable
energy ecosystem and circular carbon economy.”
The institution’s 2023-2028 strategy includes a
planned investment of up to $1 billion over the next five years to advance
energy transition, with a focus on decarbonization and related technologies.
The statement revealed that TAEF treasury’s net
operating income in 2023 nearly tripled from the previous year to $31.2 million,
driven by the restructuring of the fixed income portfolio to optimize the
liquidity and funding profile.
Treasury assets of TAEF stood at over $3.6 billion
as of December 2023.
By the conclusion of 2023, the organization’s
Investments & Partnerships unit’s asset portfolio stood at $1.4 billion,
representing a 13 percent year-on-year growth.
TAEF’s Corporate Banking unit’s asset collection
also grew by 14 percent year-on-year by the end of 2023 to reach just under $4.8
billion.
Established in 1974 by the ten Arab oil-exporting
countries, TAEF is the only energy-focused financial institution in the MENA
region rated Aa2 by Moody’s, AA by Fitch and AA- by S&P.