Saudi Arabia Crown Prince Mohammed Bin Salman announced Sunday that a 4 percent stake in energy giant Saudi Aramco has been transferred to the Public Investment Fund (PIF), according to state news agency SPA.
The Crown Prince said that the transfer is part of the kingdom’s long-term plan to restructure its economy in line with Vision 2030.
Vision 2030 aims to diversify Saudi Arabia’s economy and prepare the country for a post-hydrocarbon age. The PIF is a key player in the plan, with the Crown Prince envisioning the fund as acting as a giant investment vehicle to help fuel the change.
The transfer of ownership will support the PIF’s plans to grow its assets under management to around SAR4tn ($1.07tn) by the end of 2025, the Crown Prince added.
By 2025, the PIF will deploy up to SAR1tn on domestic projects, the Crown Prince said, and increase its local content contributions and the contributions of its portfolio of companies to around 60 percent, creating direct and indirect jobs in the local labour market.
Following the transfer of shares, the Saudi Arabian state will remain the majority shareholder in Aramco, retaining more than 94 percent of the total shares.
Saudi Aramco listed 2 percent of its shares in a blockbuster initial public offering in 2019 which raised nearly $30bn.
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