Prince shares vision of new $2trn Saudi sovereign wealth fund and Aramco sale

Saudi Deputy Crown Prince Mohammed bin SalmanSaudi sovereign wealth fund: Saudi Arabia preparing for the life after oil by creating the world’s largest sovereign wealth fund its Deputy Crown Prince Mohammed bin Salman announced this week. In a five-hour conversation with Newsmax bin Salman laid out his vision for the Public Investment Fund, which would eventually control more than $2 trillion and help wean the kingdom off oil. As part of that strategy, the prince said Saudi would sell shares in Aramco’s parent company and transform the oil giant into an industrial conglomerate. The initial public offering could happen as soon as next year. “IPOing Aramco and transferring its shares to PIF will technically make investments the source of Saudi government revenue, not oil,” he said. “What is left now is to diversify investments. So within 20 years, we will be an economy or state that doesn’t depend mainly on oil.”
The blueprint for structural change follows a series of measures last year to curb spending and prevent the budget deficit from exceeding 15 percent of gross domestic product. At the end of December, authorities raised the prices of fuel and electricity and pledged to end wasteful budget spending after oil prices plunged.

Source: newsmax