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Thursday, 2 March 2017

Help Wanted in Saudi Arabia: Savvy Investors - Bloomberg

Help Wanted in Saudi Arabia: Savvy Investors - Bloomberg:

"Yasir Alrumayyan has gotten the ear of some of the world’s most successful investors. In closed-door meetings with Blackstone Group LP co-founder Stephen Schwarzman, Carlyle Group LP’s David Rubenstein, and others, the former investment banker in charge of building up Saudi Arabia’s Public Investment Fund (PIF) has been making a pitch: Help us build our investing expertise, and you can run money for us. A lot of it. The PIF has become part of Deputy Crown Prince Mohammed bin Salman’s plan to wean Saudi Arabia off its reliance on oil and make it a financial powerhouse. Already it’s committed $45 billion to a new technology fund. It’s a high-stakes gamble for the 31-year-old prince. If the PIF’s team makes a misstep, the prince’s critics may question why he’s plowing revenue from oil into companies abroad rather than spending it at home. “Any failure of the new sovereign wealth fund would be used to return to the old privileges and structures,” says Jean-Francois Seznec, a political scientist and nonresident senior fellow at the Global Energy Center of the Atlantic Council. Prince Mohammed’s rivals could use it “to build a bigger coalition to have him sidelined.”"

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