Saudi Arabia has transferred about $80 billion worth of its Stake in Saudi Aramco to wealth funds in a move to diversify its oil economy

2022-05-26 0 By

The Wall Street Journal reported on February 14 that Saudi Arabia had transferred a 4% stake in the oil giant to the kingdom’s wealth fund, worth about $80 billion.The Saudi government will remain Aramco’s largest shareholder with a stake of more than 94%.The move is part of Saudi Arabia’s effort to diversify its oil economy.The Saudi government has sought to monetise the kingdom’s vast oil assets and use the proceeds to invest in industries other than oil as part of Crown Prince Mohammed’s plan to reform the economy by 2030.The Saudi government said the transfer would bolster plans for the Public Investment Fund to grow its assets under management from about $480 billion now to more than $1 trillion by 2025.Aramco said the share transfer has no impact on Aramco’s operations, strategy or dividend policy.