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.