SAUDI ARAMCO IS ONE OF THE WORLD'S MOST VALUABLE COMPANIES, WITH A MARKET CAPITALIZATION OF $1.9 TRILLION. PHOTO: FAYEZ NURELDINE/AGENCE FRANCE-PRESSE/GETTY IMAGES
Saudi Arabia has transferred a second 4% stake, worth nearly $78B, in state oil giant Saudi Aramco to the control of the country's sovereign wealth fund as it seeks to diversify its economy away from oil.
The shares are expected to be transferred to the Saudi Arabian Investment Company, wholly owned by the Public Investment Fund (PIF), WSJ reports.
The move was made by Crown Prince Mohammed bin Salman to "diversify the national economy and expand investment opportunities."
- The deal will reduce the Saudi government's direct ownership of the world's largest oil exporter to 90.18% while not impacting the company's operations, strategy, or distribution of dividends.
- The first 4% was transferred to the PIF last year to support the fund's plan to increase its assets under management to over $1T by 2025.
- The funds could help PIF expand its investments, having already invested in companies including Citigroup, SoftBank, and the Premier League soccer club Newcastle United.
Saudi Arabia, the world's largest crude exporter, is making its economy less dependent on oil, spurred on by years of low energy prices and concerns about climate change.
