New 4% share poured from Saudi Arabia's Aramco into state wealth fund
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The Kingdom's fund with an estimated asset wealth of around $620 billion will be used to fund bin Salman's 2030 vision.
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Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019. (Reuters)
Saudi Arabia transferred tens of billions worth of shares from Aramaco to the control of the country's sovereign fund, state media reported on Sunday.
According to the Saudi Press Agency, a four percent share was transferred to Sanabil Investments, a company owned by Ryiadh's Public Investment Fund (PIF) - a sovereign national wealth fund with an estimated asset wealth of around $620 billion, making it one of the largest in the world.
Last year, the Kingdom also transferred four percent, estimated then to be worth nearly $80 billion, to the country's fund, highlighting the ongoing plan by Crown Prince Mohammed bin Salman to achieve "Vision 2030" and deploy Saudi Arabia's massive energy income into creating an economy that does not count on oil sales to be sustainable.
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The Crown Prince "indicated that the transfer of part of the state's shares in Saudi Aramco is a continuation of Saudi Arabia's long-term initiatives to boost and diversify the national economy and expand investment opportunities," the statement said.
"The transfer will also solidify PIF's strong financial position and credit rating," it added, noting Riyadh still owns 90% of Aramco's shares.
Since Bin Salman became de facto ruler, he decided to cede some control over Aramco, the once heavily guarded Saudi gem that remained off the public's limit until recently.
In December 2019, Saudi Arabia sold 1.7 percent of its shares on the Saudi bourse, garnering around $29.4 billion in what was considered the world's biggest IPO,
Aramco saw record profits in 2022 at $161.1 billion and has vowed to reach "operational net-zero" carbon emissions by 2050, including that released by the firm's facilities.
