Saudi Crown Prince Authorizes Transfer of 4% of Saudi Aramco Shares to Sovereign Wealth Fund
Posted on 02/13/2022
Saudi Arabia’s Crown Prince Mohammed bin Salman Al Saud (MBS) agreed to move 4% of Saudi Aramco shares worth US$ 80 billion to the kingdom’s sovereign wealth fund (Public Investment Fund), the government said on Sunday. The shares of Saudi Aramco will enhance the PIF’s financial position and high credit ratings in the medium term, MBS said in a statement. By moving the shares into PIF, the SWF would be able to raise more funds internationally. Saudi Aramco is the world’s biggest oil company.
The state remains the largest shareholder in Saudi Aramco after the transfer process, as it retains more than 94% of the company’s shares, the statement said.
The transfer of existing shares would assist in PIF’s assets under management, which are targeted to grow to about 4 trillion riyals (US$ 1.07 trillion) by the end of 2025, it added.
Saudi Aramco said in a statement the transfer was a private transaction between the government and the state fund. “The company is not a party to the transfer and did not enter into any agreements or pay or receive any proceeds from that transfer,” it said.