The transfer of 4% of Aramco shares to the Public Investment Fund was announced today by Saudi Crown Prince Mohammed bin Salman.
The transfer of these shares, according to “SPA,” is part of the Kingdom’s long-term strategy for supporting the national economy’s transformation.
The decision, it said, will help the fund meet its goal of increasing its assets under administration to almost 4 trillion Saudi riyals by the end of 2025.
In the medium term, the transfer of Aramco’s shares to the Public Investment Fund will help to strengthen the fund’s financial condition and credit rating.
Its financing strategy is based on the asset value and investment returns on the assets it manages.
The fund is optimizing its assets, introducing new sectors, forming strategic economic relationships, and localizing technologies and information, according to the agency.
According to the agency, the fund wants to invest up to one trillion Saudi riyals in new projects domestically by the end of 2025.
It also wants to raise its local content shares and subsidiaries to 60%, as well as create more jobs in the local labor market.
Saudi Arabia is still the largest shareholder in Aramco, with more than 94 percent of its shares, according to the Crown Prince.