Economy

Saudi Investment Fund Anticipates $20 Billion from Aramco

Saudi Investment Fund Anticipates $20 Billion from Aramco

A report by Bloomberg revealed that the Saudi Public Investment Fund (PIF) is expected to reap quarterly revenues estimated at around $5 billion from its stake in Aramco, following the Saudi government granting the fund additional shares in the state-owned oil giant. Consequently, Aramco announced an increase in dividend payouts to shareholders. This increase in Aramco’s dividends, projected to total at least $124 billion this year, comes shortly after Crown Prince Mohammed bin Salman ordered the transfer of an 8% stake in Aramco to the Public Investment Fund. As a result of this move, the Saudi sovereign wealth fund now holds a 16% stake in Aramco, valued at approximately $333 billion, which translates to at least $20 billion in annual revenues. This represents a significant boost for the fund, as it prepares to increase spending on projects over the coming years, such as NEOM, a new city under construction on the western coast of the kingdom with costs exceeding $500 billion. The Saudi Public Investment Fund is committed to spending $40 billion annually domestically to help diversify the country's oil-dependent economy.

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