Saudi Arabia’s Crown Prince Mohammed bin Salman made a significant move by transferring an additional 8% of shares in the country’s oil giant, Saudi Aramco, to the sovereign wealth fund known as the Public Investment Fund (PIF). This transfer amounts to about $160 billion and comes as part of the kingdom’s efforts to diversify its economy and reduce dependence on oil revenue. This action aligns with the Saudi Vision 2030 initiative, which aims to boost the national economy and expand investment opportunities.
The kingdom’s ownership in Aramco now stands at 82.186%, with the company’s market value reaching $2 trillion. This transfer follows previous moves by the crown prince to transfer stakes in Aramco to different entities within the country. Aramco’s profitability has been on the rise, with the company reporting a record profit of $161 billion in 2022, making it the most profitable publicly listed company.
Despite this success, Aramco faces scrutiny from activists due to concerns about the impact of fossil fuel consumption on climate change. The company plans to announce its 2023 earnings soon, with expectations running high. The crown prince’s focus remains on diversifying the kingdom’s economy and investing in innovative projects like Neom, a futuristic desert city with a price tag of $500 billion. The recent transfer of shares to the PIF signals a continued commitment to driving economic growth and creating job opportunities within Saudi Arabia.
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