Begin typing your search above and press return to search.
proflie-avatar
Login
exit_to_app
Religious freedom on the decline 
access_time 4 Oct 2024 3:45 AM GMT
The Leftist policy that helps fascists
access_time 2 Oct 2024 6:34 AM GMT
The helplessness of the UN
access_time 30 Sep 2024 9:23 AM GMT
The power groups in politics
access_time 28 Sep 2024 4:07 AM GMT
Is India a hostile place for women?
access_time 27 Sep 2024 12:21 PM GMT
exit_to_app
Homechevron_rightMiddle Eastchevron_rightSaudi Arabiachevron_rightSaudi crown prince...

Saudi crown prince directs 8% of Aramco shares to owned firms

text_fields
bookmark_border
Saudi crown prince directs 8% of Aramco shares to owned firms
cancel

Riyadh: Saudi Crown Prince Mohammed bin Salman announced the transfer of 8% of Saudi Aramco's total issued shares to companies fully owned by the Public Investment Fund (PIF). This initiative aims to enhance investment opportunities, reinforce PIF's financial standing and contribute to the Kingdom's economic growth.

This move reduces the state's ownership of the global oil giant to 82.186%. The primary purpose is to expand investment opportunities across various sectors, thereby reinforcing PIF's robust financial standing and creditworthiness, an agenda aligning with Saudi Vision 2030.

According to SPA, the Crown Prince emphasized the multifaceted vision behind this initiative. Beyond the numerical reduction in ownership, the focus is on launching new sectors, forming strategic global partnerships, localizing technology and knowledge and generating substantial employment opportunities within the Kingdom.

The state's ownership now stands at 82.186%, with a cumulative 16% transferred to PIF and its subsidiaries. This measured reduction signifies a calibrated approach to balancing state control with the dynamism of PIF in shaping Saudi Arabia's economic future.

This transfer follows previous transactions, including the 4% transfer to PIF's Sanabil Investments last year and the direct transfer of another 4% in 2022. Saudi Aramco, with a market value of $2 trillion, solidifies its position as the world's fourth most valuable firm, following Apple, Microsoft, and NVIDIA.

PIF's track record of high-profile investments, including in companies like Uber and Disney, showcases its global reach. Last year, PIF invested $31.5 billion, making it the world's top-spending sovereign wealth fund. With roughly $700 billion in assets before this latest transfer, PIF's financial standing remains robust, reflecting its commitment to long-term economic growth.

Saudi Aramco acknowledged the transfer in corporate disclosure, emphasizing that it is a private transfer and does not impact the company's total number of issued shares, operations, strategy, dividend policy, or governance framework.

On the day of the announcement, Aramco stock traded slightly up on Riyadh's Tadawul stock exchange, reaching $8.45 a share. Benchmark Brent crude traded above $82 a barrel, showcasing the market's positive response to this strategic move.

Show Full Article
TAGS:#Aramco#Saudi AramcoSaudi NewsSaudi crown princeSelect A Tag
Next Story