The Arab Energy Fund Records $129 Million in Semi-Annual Profits, Reflecting 7% Growth

Logo of The Arab Energy Fund (TAEF)

The Arab Energy Fund (TAEF), a multilateral impact financial institution dedicated to ensuring energy security and sustainability in the MENA region, today announced its financial results for the first half of 2025, achieving solid growth across its business lines, supported by balance sheet growth and business optimization in line with the Fund’s 2024-2028 strategy.

According to a statement from the Fund received by Argaam, net income for the period ending June 30, 2025, reached USD 129mn, a 7% increase compared to USD 121mn in the same period last year. This result was driven by strong operating income across all lines of business, combined with disciplined risk management and cost efficiencies.

It also stated that total assets stood at USD 12.0bn, representing a 15% increase year-on-year, driven by continued growth in Corporate Banking and Treasury portfolios. Total Shareholders’ Equity at USD 3.45Bn grew by 6.3% with Liabilities increasing to 8.59bn, an 18.7% YoY increase, underlining the Fund’s robust funding activity.

Khalid Ali Al-Ruwaigh, CEO of TAEF, commented: "Our strong half-year performance reflects the resilience of our business model and our unwavering commitment to growth and delivering meaningful impact in the MENA energy sector. Guided by our strategy, these results are a direct outcome of our sustained efforts across all business lines and our prudent capital management. We remain focused on providing innovative financing and investment solutions that create value for our stakeholders, reinforcing our position as a leading and impact investment fund within the region’s energy landscape."

Vicky Bhatia, CFO of TAEF, said: "These results demonstrate our ability to capitalize on market opportunities while maintaining operational discipline. With a cost-to-income ratio of just 17.9%, a non-performing loan ratio reduced to 0.3%, and a strong capital adequacy ratio of 29.7%, we remain well-positioned to sustain growth and meet our strategic objectives.  

The Fund also highlighted the following key highlights:

Corporate Banking:

 
The Corporate Banking portfolio expanded to USD 5.93bn, marking a 12% increase YoY from USD 5.29bn in June 2024. Growth was fueled by demand for financing across a broad range of energy-related sectors, alongside targeted geographic diversification that strengthened the business line’s market presence.

Investments & Partnerships: Investment assets reached USD 1.50bn, a 4.4% YoY rise, supported by disciplined portfolio management and selective investments that delivered value accretion. The business line continues to prioritize strategic opportunities aligned with the Fund’s long-term impact agenda.

Treasury: Treasury assets climbed to USD 4.39bn, up 18.3% YoY, driven by active portfolio optimization and the ability to leverage favorable interest rate conditions. This growth underscores the Fund’s strong liquidity position and its capacity to navigate evolving market dynamics.

The Arab Energy Fund also highlighted that it has maintained a solid balance sheet and robust financial position, with total funding increased to USD 8.37bn, reflecting a 17.1% YoY rise. The uplift was underpinned by successful debt issuances and proactive liability management, enhancing the Fund’s flexibility to support future growth initiatives and financing solutions across the region.