• Total assets grow by 23% YoY to reach USD 13.4bn
  • Results driven by strong asset growth and a resilient funding profile

Riyadh, Saudi Arabia – The Arab Energy Fund, a leading multilateral impact financial institution, today announced its financial results for the fiscal year ending December 31, 2025.

The Fund achieved its fourth consecutive year of record net income, supported by sustained balance sheet growth, strong funding activity, disciplined cost management, and continued portfolio optimization across business lines.

Net income increased to USD 282.4mn in 2025, compared to USD 265.7mn in 2024. Excluding the one-off gain from the 2024 property sale, net income rose by 18% year-on-year, from a normalized base of USD 239.6mn in 2024.

Total assets grew by 23% YoY to a record USD 13.4bn (2024: USD 10.9bn), reflecting strong asset build-up momentum across Corporate Banking, Investments, and Treasury.

Khalid Al-Ruwaigh, Chief Executive Officer, The Arab Energy Fund, said: “Our financial results reflect the strength and resilience of The Arab Energy Fund’s diversified business model. Achieving our fourth consecutive year of record net income, supported by a strong balance sheet, underscores our disciplined execution, prudent risk management, and continued ability to mobilize capital across the region.”

During 2025, the Fund raised USD 3.8bn in new funding, reinforcing its diversified funding base and strong access to international capital markets. Asset quality remained robust, with a non-performing loan (NPL) ratio of 0.2%, reflecting prudent underwriting standards and active portfolio monitoring.

Vicky Bhatia, Chief Financial Officer, The Arab Energy Fund, commented: “TAEF has delivered, yet another strong performance, achieving its highest Net Income level of USD 282.4mn. We also raised record levels of funding in 2025, achieving effective pricing outcomes. We maintained strong operating efficiency, with a cost-to-income ratio of 19.5% and Capital adequacy of 30.45%, positioning us very well to fuel our future growth.”

Across its business lines, Corporate Banking expanded its portfolio to USD 6.0bn, with net operating income reaching USD 140.1mn, supported by financing activity across the energy value chain, portfolio expansion and funding optimization. Investments & Partnerships grew its asset portfolio to USD 1.6bn, delivering USD 67.0mn in gross operating income, driven by dividend income and continued portfolio diversification. Treasury and Capital Markets maintained strong balance sheet management, with assets reaching USD 5.5bn and net operating income of USD 132.6mn, supported by effective liquidity management, optimization of investments amid a declining interest rate environment and disciplined funding execution.

Building on this strong performance, The Arab Energy Fund remains well-positioned to continue supporting energy security and economic development across the region and beyond. It remains focused on expanding its financing and investment footprint, while maintaining a conservative risk profile, strong capital buffers, and a disciplined funding strategy.

About The Arab Energy Fund

The Arab Energy Fund (The Fund) is a multilateral impact financial institution focused on the MENA energy and utility sectors, established in 1974 by ten Arab oil-exporting countries. The Fund’s mission is to support the energy ecosystem with debt and equity solutions to enable energy security and sustainability and to develop local value chains and services in the MENA region. The Arab Energy Fund creates impact by contributing to economic prosperity and enabling local communities via talent development and knowledge creation. The Fund offers a comprehensive range of funding solutions across the entire energy value chain to leading public and private sector business partners in over 35 markets. The Arab Energy Fund applies best-practice ESG principles across all operations, with environmental and socially linked projects comprising c.20% of its USD 5.8bn loan portfolio. The Arab Energy Fund is the only energy-focused financial institution in the MENA region rated ‘Aa2’ by Moody’s, ‘AA+’ by Fitch and ‘AA-’ by S&P.

Contacts:
Communications Department
The Arab Energy Fund
Yasa Ahmad
Yasa.Ahmad@edelmansmithfield.com