Saudi Arabia’s sovereign wealth fund PIF (Public Investment Fund) has transferred 4% of its issued shares in state oil giant Aramco—valued at around $80 billion—to one of its key subsidiaries, Sanabil Investments.
HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, the Crown Prince and Prime Minister and PIF Chairman, said the transfer of part of the state’s shares in Saudi Aramco 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.
Prince Mohammed bin Salman pointed out that following the transfer, the state will still remain Saudi Aramco’s largest shareholder with a total ownership of 90.18% of the shares.
The transfer will solidify PIF’s strong financial position and credit rating, the Prince noted.
The Crown Prince, who chairs the PIF, has made it the vehicle for investments under his Vision 2030 strategy, which seeks to modernise the kingdom and diversify its economy to reduce its reliance on oil.
The $600-billion cash rich PIF has a target of managing $1 trillion in assets and the larger stake in Aramco will provide it with substantial dividends to fund its expansion., according to the Financial Times.
