Saudi Arabia’s sovereign wealth fund PIF (Public Investment Fund) has transferred 4% of its shares in state oil giant Aramco, valued at around $80 billion, to one of its key subsidiaries, Sanabil Investments.
Announcing the transfer, His Royal Highness (HRH) Prince Mohammed bin Salman bin Abdulaziz Al Saud, the Crown Prince and Prime Minister and PIF Chairman, said the move was a 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.
Following the transfer, the state will still remain Saudi Aramco’s largest shareholder with a total ownership of 90.18% of the shares, (HRH) Prince Mohammed bin Salman bin Abdulaziz Al Saud said.
The transfer will solidify PIF’s strong financial position and credit rating, stated Prince Mohammed bin Salman.
According to a report by Financial Times, 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.
The PIF has become a key source of investments for financiers looking to raise capital from tech start-ups to football clubs.
The energy giant had listed a 1.7% stake on the Saudi stock market in 2019, raising about $29 billion in a blockbuster initial public offering to kick-start the kingdom’s diversification drive.