Saudi Arabia will create a sovereign fund for the post-oil era

Saudi Fund to $ 2 trillion[t:tag slug=trillion]trillion/t:tag] plans to increase the share of foreign investment from the current 5% of the total fund of up to 50% by 2020.

MOSCOW, April 1 - RIA Novosti. Saudi Arabia plans to form the world’s largest sovereign fund in the $ 2 trillion for the kingdom’s most valuable assets in preparation for the end of the oil age, said second Crown Prince and Defense Minister Mohammed bin Salman.

According to Salman, the fund will help the authorities to wean the kingdom from the oil. Thus, the country will sell shares of Saudi Aramco’s state oil company, and turn the oil giant in industrial conglomerate. The initial public offering could happen as early as next year, the country is now planning to sell at least 5% of the company.

“Conducting IPO Saudi Aramco and the transfer of its shares in the fund technically turn the investment into a source of revenue the government of Saudi Arabia instead of oil now remains only to diversify investments Thus, for 20 years we have become a country that does not depend mainly on oil..”, - He said Salman in an interview with Bloomberg.


According to the agency, fund of this size could buy the corporation Apple Inc., Alphabet Inc., Microsoft Corp. and Berkshire Hathaway Inc. - Four of the world’s largest public companies.

Foundation, finally, plans to increase the share of foreign investment from the current 5% of the total fund of up to 50% by 2020, said the Foundation Board of Directors Secretary General Yasser Alrumayan (Yasir Alrumayyan).

According to Salman, the National Welfare Fund already owns shares in large companies, including Saudi Basic Industries Corp., the second-largest producer of chemicals, and the National Commercial Bank, the largest creditor of the kingdom. “Undoubtedly, it is the largest fund in the world This will happen as soon as the Aramco company becomes public.” - Said Salman.

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