Saudi Arabia has completed the transfer of 8% of Saudi Aramco’s total issued shares from the State’s ownership to companies fully owned by the country’s Public Investment Fund (PIF).
The stake is worth roughly $163.6 billion, according to Aramco’s market capitalisation, LSEG data shows. Following the transfer, the total state’s ownership will be 82.19% of the company’s shares.
The news was announced by HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince, Prime Minister, Chairman of the Council of Economic and Development Affairs and Chairman of the Board of Directors of the PIF.
The Crown Prince stated that the transfer is a continuation of Saudi Arabia’s long-term initiatives to boost and diversify the national economy and expand investment opportunities in line with Saudi Vision 2030.
“The transfer will also solidify PIF’s strong financial position and credit rating”, Saudi Arabia’s press agency added.
The Crown Prince concluded that PIF continues with its mandate to launch new sectors, build new strategic partnerships, localise technologies and knowledge, and create more direct and indirect job opportunities in the local market.
PIF is one of the Kingdom’s main vehicles to reduce its reliance on oil and gas. In 2015, the fund’s oversight changed as it began reporting to the Council of Economic and Development Affairs (CEDA), chaired by the Crown Prince.
PIF Governor Yasir Al Rumayyan and Chairman of Aramco, said last month the fund planned to increase its deployment of capital to $70 billion a year after 2025.
In February, Aramco announced it had signed 40 corporate procurement agreements worth $6 billion with suppliers in the Kingdom of Saudi Arabia. The company also revealed it will not aim to increase its maximum sustainable capacity to 13 million barrels per day (bpd), after receiving a directive from the Kingdom’s Energy Ministry.
PIF has recently acquired stakes in London’s Heathrow Airport, Zamil Offshore,
