São Paulo – The government of Saudi Arabia has transferred an additional 8 percent of the total issued shares of oil giant Saudi Aramco to portfolio companies wholly owned by the kingdom’s sovereign wealth fund, the Public Investment Fund (PIF), state-run news agency SPA and Arab News reported on Thursday (7). Saudi Crown Prince Mohammed bin Salman (pictured) was quoted as saying the transfer is part of the Gulf state’ initiatives aimed at strengthening the national economy in the long term, diversifying its resources and creating more investment opportunities.
Last year, 4 percent of Aramco’s shares were transferred to a PIF company. In 2022, another 4 percent of Aramco shares, were transferred directly to the Kingdom’s sovereign wealth fund. This new transfer is expected to solidify PIF’s strong financial position and credit rating.
The Saudi sovereign wealth fund is one of the world’s largest, with investment in many companies across various industries like transport, entertainment, mining, and oil. The crown prince has said he wants the fund to have assets worth USD 1 trillion by the end of 2025.
In 2023, PIF made investments of USD 35 billion in companies from various countries, including Brazil. Salman was quoted as saying he expects that PIF continues with its mandate to build new strategic partnerships, localize technologies and knowledge, and create more job opportunities in the local market.
Translated by Guilherme Miranda
