Saudi Arabia makes intentions clear with $2tr fund | GulfNews.com

Saudi Arabia makes intentions clear with $2tr fund | GulfNews.com:

"When the Gulf countries reiterated their readiness to cope with a collapse in oil prices in spite of all the difficulties, misleading media campaigns and distortion of facts, some argued that the pledge was nothing more than an exaggeration. However, the Gulf has reacted strongly and swiftly.

Earlier, His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Abu Dhabi Crown Prince and Deputy Supreme Commander of the UAE Armed Forces, announced the UAE’s adoption of a strategic approach laying the foundations of the post-oil era. Prince Mohammad Bin Salman, Saudi Deputy Crown Prince, followed in the footsteps of the UAE by last week announcing that Saudi Arabia will launch the world’s largest sovereign fund with a total of $2 trillion (Dh7.34 trillion) to prepare for the post-oil stage.

But what does this mean? The sovereign fund (dubbed the Public Investment Fund) was founded years ago, but the latest steps will boost its capabilities and contribute to diversifying national income through restructuring and improving the fund’s management and capabilities. It will be the world’s largest sovereign fund with sizeable annual revenues that would contribute, according to available data, to 40 per cent of the kingdom’s annual revenues."



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