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17-04-23

Saudi Aramco Transfers 4 Percent Stake to Sanabil Investments, Part of Saudi Vision 2030

(MENAFN) Saudi Aramco, the energy giant, has transferred a 4 percent stake from state ownership to Sanabil Investments, the investment arm of Saudi Arabia's sovereign wealth fund, according to Crown Prince Mohammed bin Salman. The state remains Aramco's biggest shareholder, owning 90.18 percent of the firm. The transfer of Aramco shares to Sanabil Investments is part of Saudi Arabia's long-term initiatives to diversify the national economy and expand investment opportunities in line with Saudi Vision 2030.

Sanabil Investments is an investment company that commits approximately USD3 billion annually to private transactions. The transfer of shares is expected to help maximize the assets of the Public Investment Fund (PIF) and enhance the PIF's financial position and credit rating. The PIF will continue to launch new sectors, build strategic economic partnerships, localize technologies and knowledge, creating more jobs in the local labor market.

The transfer of the 4 percent stake in Aramco follows another similar transfer last year, worth tens of billions of dollars, with the wealth fund now controlling a total of 8 percent of shares in Aramco. The transfer of shares to Sanabil Investments will not affect Aramco's total number of issued shares, and the shares transferred will rank equally alongside other existing ordinary shares in the company. The transfer of shares will also not have any implications on the company's operations, strategy, dividends distribution policy or governance framework.

Earlier this month, Sanabil Investments disclosed its ties to more than 50 venture capital and private equity firms, including Blackstone, KKR & Co., and General Atlantic, among others. The investment firm has pledged to commit USD2 billion annually to venture capital, growth, and small buyouts. The PIF has maintained the sixth spot in the list of top sovereign wealth funds worldwide, with assets worth USD607.42 billion, according to data released by the Sovereign Wealth Fund Institute in January.

The PIF owns 71 companies in ten different sectors, creating more than 500,000 direct and indirect jobs. The Governor of the PIF, Yasir Al-Rumayyan, said in November 2022 that the fund is committed to creating more job opportunities in the future, with an aim to create 1.8 million quality jobs. The transfer of shares from state ownership to Sanabil Investments is a part of the PIF's efforts to boost the national economy and create more job opportunities, furthering the goals of Saudi Vision 2030.

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