Arab Energy Fund Achieves Record Net Income in 2023
In a groundbreaking financial milestone, the Arab Energy Fund reported a record net income of $225 million in 2023, representing a remarkable 51 percent increase fueled by asset growth and favorable interest rates.
The institution credited this impressive growth to the optimization of funding and liquidity profiles, effective cost management, and diversification of the lending portfolio.
Capital Gain and Asset Growth
Alongside the record net income, the Arab Energy Fund also experienced a capital gain of $20.6 million in 2023, with total assets growing by 12 percent year-on-year to $9.88 billion.
Transformation and Rebranding
During COP28 in Dubai, the Arab Petroleum Investments Corp. underwent a transformation and rebranded itself as the Arab Energy Fund, solidifying its focus on the energy sector in the Middle East and North Africa region.
New Strategy and Vision
Khalid Ali Al-Ruwaigh, CEO of TAEF, expressed excitement about the institution’s record financial results, highlighting the launch of a new trademark name and strategy, and the relocation to Riyadh. He emphasized the commitment to becoming a leading impact investor in the MENA region and supporting sustainable energy initiatives.
Future Investments and Growth
The Arab Energy Fund’s 2023-2028 strategy includes plans for up to $1 billion in investments over the next five years to advance energy transition and decarbonization efforts. The institution aims to drive innovation and support a circular carbon economy.
Financial Performance
In 2023, TAEF’s treasury saw a significant increase in net operating income, reaching $31.2 million, driven by portfolio restructuring. The treasury assets stood at over $3.6 billion by the end of the year.
Additionally, the Investments & Partnerships unit and Corporate Banking unit both saw substantial growth in asset portfolios, reflecting TAEF’s strong financial performance and strategic vision for the future.
Leading Energy-Focused Financial Institution
Established in 1974 by Arab oil-exporting countries, the Arab Energy Fund is the premier energy-focused financial institution in the MENA region, with top ratings from Moody’s, Fitch, and S&P.