Public Investment Fund (PIF) ranks 5th among World's Sovereign Wealth Funds
With $861 billion (Dh3.1 trillion) in net assets, the Saudi Public Investment Fund (PIF) jumps to the position of 5th ranking Sovereign Wealth Fund (SWF) worldwide. Trending Video : Saudi Jawazat launches 8 new e-services in Absher and Muqeem
On March 7, 2024, Saudi Arabia's Crown Prince Mohammed bin Salman announced the transfer of 8% of Aramco shares to the Public Investment Fund (PIF). The transfer is valued at approximately $163.6 billion.
- The transfer is part of Saudi Arabia's plan to diversify its economy. It will also help the PIF's financial position and credit rating. As a result of the transfer, the state's ownership of Aramco will be 82.186%.
- In the Year 2022, PIF transferred a 4% direct ownership position in Aramco, last year, it transferred an additional 4% indirectly to Sanabil, which it now owns in its whole.
- With the purchase of an extra 8% investment in Saudi Aramco, the PIF's projected shareholding value increased to $328 billion (Dh1.2 trillion), or about 37% of the portfolio value. Most Viewed : How to check Mobily balance in Saudi Arabia
- A total of over $860 billion (Dh3.1 trillion) jumped from $700 billion (Dh2.5 trillion) to the Public Investment Fund as a result of this decision.
- In line with the Kingdom's primary objective of diversifying its revenue streams, the Sovereign Wealth Fund Institute estimates that PIF's considerable holding in Aramco will yield billions in dividends each year, strengthening its investment capability.
- The construction of Alat and other initiatives funded by the PIF would help Saudi Arabia reach its Vision 2030 goal of diversifying its GDP away from the oil sector.
- Placing Saudi Arabia as an important player in world's automotive production is the ambition of the PIF, which is why it has expanded its reach into the automotive sector through partnerships with Hyundai and investments in Lucid and Ceer Motors.
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