© AP
SAUDI ARABIA-OIL
Saudi Arabia announced on Sunday that it would transfer 4% of its shares in state oil company Aramco to its sovereign wealth fund, an injection of nearly $80 billion in cash as part of its efforts to diversify an economy heavily dependent on energy.
The announcement was made in state media. The oil company is valued at just under $2 trillion, with oil at $90 a barrel, its highest price since 2014.
Crown Prince Mohammed bin Salman, the influential son of Saudi Arabia’s King Salman, made the decision to transfer the shares, according to state media. The assets will go to the Public Investment Fund, the sovereign wealth fund of the kingdom, which has been the mechanism used by Prince Mohammed for investments as disparate as Uber or the British soccer team. Newcastle United
“His Highness added that the transfer of these shares is part of the long-term strategy of the kingdom, aimed at maintaining the restructuring of the national economy,” the report said.
Saudi Arabia has benefited from a surge in crude prices following the coronavirus pandemic plunged prices, but it is also keeping a close eye on growing global concern over climate change fueled by the burning of fossil fuels. The Public Investment Fund has also invested in electric car maker Lucid Motors Inc, of Newark, California
The kingdom remains the firm’s largest shareholder with 94% of the company. Riyadh first offered shares in the firm on the Riyadh Tadawul stock exchange in 2019.
Aramco shares were selling for 37.3 Saudi riyals, or $9.94, before trading opened on Sunday.
