Saudi Arabia has transferred $ 80bn shares in its private equity fund as the oil-rich country hopes to compete with Norway and Singapore-owned funds and invest in green projects.
Crown Prince Mohammed bin Salman, governor of Saudi Arabia, has said that 4% of the shares in Saudi Aramco, the world’s largest oil producer, will be transferred to the state treasury as part of efforts to restructure the oil-dominated economy.
The transfer is the latest sign that Saudi Arabia wants to open up the oil giant and the “crown jewel” of the Saudi economy, the largest in the Arab world.
The crown prince, accused by the US of approving the assassination of Washington Post journalist Jamal Khashoggi, was quoted as saying that “the transfer of 4% of Aramco shares to the Public Investment Fund (PIF) … is part of a long-term state. .
He said the state wants the investment fund to have $ 1tn assets by the end of 2025. The fund, which is the basis for legal action to end economic dependence on oil, was less than half that amount before the agreement.
Norway, the world’s largest private equity fund, said last month it had received a 14% return on its $ 1.3tn investment, largely due to state-owned oil sales. Temasek Singapore Investment Fund costs more than $ 300bn.
Crown Prince Mohammed has stressed that the Saudi regime will remain the sole shareholder of Aramco with 94% of the shares. He is also the head of the ruling PIF.
Aramco shares ended a 0.6% decline in Sunday trading after the announcement. But experts say a stock exchange will strengthen the private fund.