- TAEF achieved a 51% increase in net income, reaching $225 million, driven by strategic initiatives.
- Under CEO Khalid Al Ruwaigh, TAEF underwent significant changes, including a new name and relocation to Riyadh, to become a leading impact investor in MENA.
- TAEF allocated $1 billion for decarbonization efforts and launched ’50+’ to empower future energy leaders, showcasing its commitment to sustainability.
The Arab Energy Fund (TAEF) is a multilateral impact financial institution and its three per cent stake is owned by Bahrain. It has reported significant growth in its net income, which surged by 51 per cent year-on-year to reach $225 million. The development bank, formerly known as Apicorp, is focused on the Mena energy sector. It also witnessed capital gains of $20.6 million in the past year.
Moreover, TAEF’s total assets experienced a notable increase of 12 per cent year-on-year, reaching $9.88 billion. This remarkable growth in net income marks the second consecutive year of record-breaking performance for TAEF. It was propelled primarily by asset growth, strategic optimisation of funding and liquidity profiles, effective cost management, diversification of the lending portfolio, and favourable interest rates.
The Arab Energy Fund (TAEF) achieved record financial results, marking the culmination of a transformative year. Khalid Al Ruwaigh, the chief executive, attributed this success to the implementation of a new trademark name and strategy, as well as the relocation of the organization to Riyadh. He highlighted the highest-ever net income recorded in the fund’s 50-year history, reflecting the positive impact of these strategic initiatives.
The robust performance was driven by various business lines, focusing on aligning debt and equity portfolios with the vision of becoming a leading impact investor in the MENA region. TAEF aims to support sustainable energy ecosystems and promote a circular carbon economy through innovative solutions.
Notably, net operating income from TAEF’s treasury nearly tripled to $31.2 million, attributed to the restructuring of the fixed income portfolio to optimize liquidity and funding while managing interest rate risk. As of December 2023, treasury assets exceeded $3.6 billion.
In line with its ambitious vision, TAEF relocated to Riyadh, Saudi Arabia, as part of a redesigned business approach focused on long-term growth and impact. This strategic move underscores the fund’s commitment to driving positive change and maximizing its contribution to sustainable development in the region.
In its commitment to addressing climate issues, The Arab Energy Fund (TAEF) actively participated as a climate supporter in COP28, where it publicly unveiled its new trademark name and strategy. The Arab Energy Fund announced its plan to invest up to $1 billion over the next five years in decarbonisation and local supply chains.
Alongside this announcement, TAEF launched ’50+’, a training programme designed to empower the next generation of energy industry leaders. This initiative offers university graduates a six-month immersive training programme in energy finance.
By the end of December 2023, TAEF’s investments and partnerships unit saw significant growth, with its asset portfolio reaching $1.4 billion, marking a 13% year-on-year increase. Despite a 9% year-on-year decrease in gross operating income to $110 million, the unit achieved strong capital gains of $20.6 million from the successful exit from Ashtead Technology.
Simultaneously, TAEF’s corporate banking unit experienced robust growth, with its asset portfolio expanding by 14% year-on-year to nearly $4.8 billion by the end of 2023. The gross operating income for this unit surged by 82% year-on-year to $360 million, driven by the introduction of project bonds for the first time and the unit’s expansion into new markets such as the US and Nigeria.
Furthermore, TAEF diversified its sector portfolio by venturing into new energy subsectors, including nuclear power and industrial waste management, to adapt to evolving market demands and foster sustainable development.
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