The Arab Energy Fund (TAEF), a leading multilateral financial institution, had a productive 2025, as it achieved its fourth consecutive year of record net income, supported by factors such as sustained balance sheet growth, strong funding activity, disciplined cost management, and continued portfolio optimisation across business lines.
While net income increased to USD 282.4 million in 2025 (compared to USD 265.7 million in 2024), the year-on-year growth percentage stood at 18% from a normalised base of USD 239.6 million in 2024. Total assets grew by 23% to a record USD 13.4 billion (up from USD 10.9 billion in 2024), reflecting strong asset build-up momentum across Corporate Banking, Investments, and Treasury.
The Arab Energy Fund CEO Khalid Al-Ruwaigh 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 mobilise capital across the region.”
In terms of raising funds, the entity, during 2025, got USD 3.8 billion, 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%.
The Arab Energy Fund CFO Vicky Bhatia said, “TAEF has delivered, yet another strong performance, achieving its highest Net Income level of USD 282.4 million. 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 The Arab Energy Fund’s business verticals, corporate banking expanded its portfolio to USD 6 billion, with net operating income reaching USD 140.1 million, supported by financing activity across the energy value chain, portfolio expansion and funding optimisation.
Investments and partnerships expanded the asset portfolio to USD 1.6 billion, generating USD 67.0 million in gross operating income. This growth was primarily driven by dividend income and ongoing portfolio diversification. Treasury and Capital Markets effectively managed the balance sheet, with assets totalling USD 5.5 billion and net operating income of USD 132.6 million. This success was supported by sound liquidity management, optimisation of investments in a declining interest rate environment, and disciplined funding execution.
And the positive momentum will continue in 2026, as the entity received regulatory approval to issue Panda bonds in China. This makes it the first multilateral financial institution from the Middle East and North Africa (MENA) region to secure such approval, granting it direct access to the domestic bond market of the world’s second-largest economy.
Under the programme, approved by China’s National Association of Financial Market Institutional Investors, TAEF can issue up to 10 billion Chinese yuan (USD 1.4 billion) in Renminbi-denominated bonds in multiple tranches over two years, providing flexible, long-term capital for the fund’s strategic investments.