Saudi energy giant Aramco announced on Sunday a slight stake dilution, with four percent stake in the company getting transferred from state ownership to Sanabil Investments, the investment arm of the Kingdom’s sovereign wealth fund, Public Investment Fund (PIF)
Saudi Arabia’s Crown Prince Mohammed bin Salman, who made the announcement on Sunday, however, said the state continues to remain Aramco’s biggest shareholder, owning 90.18 percent stakes in the firm, SPA reported.
The move follows a similar transfer last year worth tens of billions of dollars, with the wealth fund now controlling a total of 8 percent of shares in Aramco.
Mohammed bin Salman indicated that this transfer of stakes is a part of Saudi Arabia’s long-term initiatives to boost and diversify the national economy and expand investment opportunities in line with Saudi Vision 2030.
Riyadh-based Sanabil is an investment company that commits approximately $3 billion a year to private transactions, according to its website.
The crown prince further added that the transfer will help maximize the assets of the Public Investment Fund and could enhance the PIF’s strong financial position and credit rating.
He also indicated that the PIF will continue to launch new sectors, along with building strategic economic partnerships, localizing technologies and knowledge, which will ultimately result in the creation of more direct and indirect jobs in the local labor market.
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