Arab News, Thu, Mar 14, 2024 | Ramadan 4, 1445
Saudi Arabia’s PIF updates its asset size to $925.2bn
Saudi Arabia:
Saudi Arabia’s sovereign wealth fund has revised its asset size on its website,
reaching $925.2 billion, after it climbed to the fifth spot in a ranking of
state-owned investment organizations.
The significant rise in the Public Investment
Fund’s standing follows its procurement of an additional 8 percent stake in
Aramco, boosting its shareholding’s estimated value to $328 billion.
This acquisition has significantly impacted PIF’s
overall assets under management, exceeding $860 billion, a rise from $700
billion by the end of 2022.
As a result, the Aramco holding now accounts for
around 37 percent of the body’s portfolio value, representing a key milestone in
the fund’s growth trajectory and central role in the Kingdom’s broader economic
diversification agenda.
According to the Sovereign Wealth Fund Institute,
PIF’s considerable position in Aramco is likely to yield billions of dollars in
annual dividends, strengthening its investment capability.
Furthermore, the fund’s involvement in
megaprojects and subsidiaries strives to accelerate Saudi Arabia’s Vision 2030
goals.
Notable projects include the development of Alat,
a $100 billion industrial electronics company that aims to boost global
semiconductor supply and contribute $9.3 billion to the national gross domestic
product by 2030.
Furthermore, the fund’s automotive endeavors, such
as partnerships with Hyundai and investments in Lucid and Ceer Motors, are
consistent with its goal of positioning Saudi Arabia as a major player in global
car production.
Earlier in March, Saudi Crown Prince Mohammed bin
Salman announced the completion of the transfer of an extra 8 percent of Saudi
Aramco’s total issued shares to portfolio firms owned entirely by the fund,
according to the state-run news agency.
As stated by SPA, the state now owns 82.186
percent of Aramco shares, with 16 percent going to the fund and its
subsidiaries.
The SPA report quoted the crown prince as saying
the transfer of ownership of part of the state’s shares in Saudi Aramco to
PIF-owned firms is part of “the Kingdom’s initiatives aimed at strengthening the
national economy in the long-term, diversifying its resources and creating more
investment opportunities.”
The crown prince highlighted that the fund
continues to build new economic partnerships, localize technologies, and
contribute to the creation of more direct and indirect jobs in the labor market.