State-run pension fund increases investment in seven companies

Saudi Arabia's state-run pension fund spent 1.26 billion riyals to raise its stake in seven companies as it seeks to expand investments and benefit from a market rally, NCB Capital said.

The General Organisation for Social Insurance, also known as Gosi, increased its stake in Saudi Arabian Fertiliser Co, Saudi Arabian Mining Co, Savola Al Azizia United Co, Jabal Omar Development Co, Southern Province Cement Co and Qassim Cement Co, NCB Capital said in an e-mailed report on Saturday. The fund also bought into Saudi National Petrochemical Co.

Gulf countries, including Saudi Arabia, are using their sovereign wealth funds to expand their investments at home and abroad as they diversify their economies away from oil and seek to increase trading on local exchanges. The Saudi bourse, the biggest stock exchange in the Middle East, advanced as much as 18 per cent this year after losing more than half its value in 2008 as oil prices dropped.