[ad_1]
Saudi Arabia has transferred an 8% stake in its oil company, Aramco, to a private investment fund, a Saudi government-linked asset pool. The move comes amid a realignment of national finances to boost capital investment aimed at diversifying the economy beyond oil.
PIF currently holds a 16% stake in Aramco, officially known as Saudi Arabian Oil Group. Aramco is the fourth largest publicly traded company in the world, with a market capitalization of approximately $2.1 trillion. Reuters reported that Aramco is considering selling more shares to the public.
The transfer, announced on Thursday, strengthens PIF’s plans to take on new industries and large-scale real estate projects, such as the city of the future Neom and a major sports complex to host the 2029 Asian Winter Games and other sporting events. It is something. This ambitious initiative is called “Vision 2030.” The capital injection will also support PIF’s plans to go public, increasing its ability to raise more capital.
PIF currently manages assets of $700 billion, but as of September 30, 2023, cash and deposits were $15 billion, down 70% from the previous year. PIF’s investment in Aramco can further help the fund’s coffers thanks to the oil company’s generous dividends. Aramco stock has a yield of 3.82%. The fund raised $7 billion in two bond sales this year. PIF aims to reach $2 trillion in assets by 2030.
The transfer of Aramco shares to PIF is “a continuation of Saudi Arabia’s long-term efforts to revitalize and diversify the national economy and expand investment opportunities in line with Saudi Vision 2030,” said PIF Chairman and Government said Crown Prince Mohammed bin Salman. The prime minister said in a statement released through the state news agency SPA.
Related article:
Saudi Arabia’s public investment fund became the largest spender among its peers in 2023
Saudi Arabia’s sovereign wealth fund takes 10% stake in Heathrow Airport owner
MBS aims to reach $2 trillion in Saudi fund assets
Tags: Aramco, Asian Winter Games, bonds, cash, Mohammed bin Salman, NEOM, PIF, Saudi Arabia, Vision 2030
[ad_2]
Source link
