Skip to content Skip to Search
Skip navigation

Saudi National Bank’s $230m fund to energise oil sector 

Architecture, Building, Office Building SNB Capital
SNB Capital, licensed by the Saudi market regulator, has $66 billion in assets under management as of December 2023

SNB Capital, the investment arm of Saudi National Bank, has launched a $230 million oil and gas fund to offer investors exposure to top-tier energy companies.

The Shariah-compliant fund launched by a Dubai-based unit of SNB Capital will invest indirectly in Repsol E&P, a joint venture between Spain energy giant Repsol and US-headquartered investment company EIG.

Repsol will retain a majority stake in the joint venture, but no details were given. In September 2022, EIG acquired a 25 percent stake in Repsol Upstream, an exploration and production (E&P) company.

The new investment will help acquire a large-scale portfolio with a production capacity of 600,000 barrels of oil equivalent per day.

Repsol E&P operates oil and gas fields and developments in OECD jurisdictions, with nearly 50 percent of the reserves and resources in North America. 

SNB Capital, licensed by the Saudi market regulator, has $66 billion in assets under management as of December 2023.

In October 2023, Opec secretary general Haitham Al Ghais said that the oil group estimates around $14 trillion will need to be invested in the oil sector from now to 2045 to ensure energy security for Europe and the rest of the world.

He added that calls to stop investing in oil were counterproductive and energy security was “the cornerstone” of global economic prosperity.

Despite this, oil and gas investment growth will be subdued at four percent in 2024, according to research and business intelligence company Rystad Energy.

Only $800 million will enter the oil and gas sector, while renewables and clean technologies markets should see a flow of $1.2 trillion.

“Supply chain constraints and inflated goods and services prices are severely impacting fossil fuel spending, while renewable and cleantech pricing has come down, especially for batteries and solar,” Rystad said in a note.

Latest articles

Over 400 global food brands are taking part in the SaudiFood Manufacturing show in Riyadh this month

Saudi Arabia’s food factory count rises to 1,300

The total number of food factories operated by the Saudi Authority for Industrial Cities and Technology Zones (Modon) has reached 1,300, across 36 cities. The increase signifies the growing capacity of the domestic food industry and its localisation efforts, the state-run Saudi Press Agency reported. Food industry companies have recorded a growth rate of more […]

Garden, Nature, Outdoors

UAE commits $50m to development fund

The UAE has committed $50 million to the second phase of the Lives and Livelihoods Fund 2.0 (LLF 2.0), a multi-donor initiative targeting sustainable economic development in the Islamic Development Bank’s (ISDB) 57 member countries. The funding will be deployed by LLF 2.0 to support critical projects in health and infectious diseases, agriculture, and social infrastructure in low […]

Abu Dhabi’s last debt market activity included a $2 billion bond in May 2021 followed by a further $3 billion in September

Abu Dhabi launches $5bn bond issue after 3 years

Abu Dhabi has initiated $5 billion in a three-tranche bond after a hiatus of three years, according to a media report. The $1.75 billion five-year bond, $1.5 billion 10-year tranche and $1.75 billion 30-year issue was priced at 35, 45 and 90 basis points, respectively, over US Treasuries, fixed income news service IFR reported. Abu Dhabi […]

A square in Cairo

‘Worst is behind us’ in Egypt’s black market dollar war says BMI

The Egyptian government’s priority for 2024 should be to keep the gap between the official and parallel exchange rates for Egypt’s pound and the US dollar as narrow as possible, says BMI Research. In a webinar on Tuesday BMI, a Fitch Group firm specialised in country risk, said that “the worst is behind us” in […]