Saudi Arabia has transferred a $163bn stake in national oil group Aramco to its sovereign wealth fund as the once conservative state investment group seeks to grow its assets to fund projects to modernise the economy.
The transfer of 8 per cent of Aramco to the Public Investment Fund is the third time in the past two years the government has increased the sovereign wealth fund’s stake in the world’s largest oil producer.
The PIF now in effect controls 16 per cent of Aramco after an original 4 per cent stake was transferred to the fund in February 2022 before Sanabil, an investment arm of the wealth fund, took a 4 per cent stake in April 2023.
After decades as a conservative sovereign investor mainly focused on the local market, Crown Prince Mohammed bin Salman has made the PIF the vehicle for investments under his Vision 2030 strategy, which seeks to modernise the kingdom and reduce its reliance on oil.
MBS, as he is widely known, who is the country’s prime minister and also chairs the wealth fund, said the transfer would “solidify PIF’s strong financial position and credit rating”.
The transaction was “a continuation of Saudi Arabia’s long-term initiatives to boost and diversify the national economy and expand investment opportunities in line with Saudi Vision 2030”, he added.
No comments:
Post a Comment