In a strategic move, Saudi Arabia has elevated the Public Investment Fund’s (PIF) stake in Aramco by 8%, amounting to approximately $163.6 billion, as part of efforts to bolster the sovereign wealth fund in preparation for potential public offerings. This decision is in line with the kingdom’s enduring economic strategies and the ambitious Vision 2030 objectives.
The transfer of the stake signifies Saudi Arabia’s commitment to fortifying the PIF’s position and expanding investment opportunities, as highlighted by state news agency SPA. Crown Prince Mohammed bin Salman, also known as MBS and the chairman of PIF, emphasized the importance of this transfer in solidifying the fund’s financial standing and credit rating.
While PIF has raised $7 billion from debt sales this year, leveraging strong investor demand in emerging markets, its total debt stands at around $36 billion, according to Global SWF. The recent stake transfer is projected to generate over $9 billion in annual dividend revenue from Aramco, providing a significant financial boost to the fund.
PIF Governor Yasir al-Rumayyan, who also chairs Aramco, revealed plans to ramp up capital deployment to $70 billion annually post-2025, up from the current range of $40 billion to $50 billion. Meanwhile, Aramco’s shares closed slightly below their 2019 IPO price on Thursday, reflecting a market capitalization nearing $2.05 trillion.