Why Saudi Arabia Transfered 4% of Aramco Shares to PIF Subsidiary?

Why Saudi Arabia Transfered 4% of Aramco Shares to PIF Subsidiary?

Saudi Arabia's Crown Prince Mohammed bin Salman announced Sunday the transfer of a 4% stake of the oil giant Saudi Aramco to Sanabil Investments, a subsidiary of the kingdom's Public Investment Fund (PIF).

Experts interviewed by Asharq Al-Awsat said the move supports PIF’s flexibility in capturing local and global investment and strategic economic opportunities, as well as ensures the continuation of plans to drive national economic growth.

Crown Prince Mohammed bin Salman indicated that the transfer of part of the State’s shares in Saudi Aramco is a continuation of Saudi Arabia’s long-term initiatives to boost and diversify the national economy and expand investment opportunities in line with Saudi Vision 2030.

The transfer will also solidify PIF’s strong financial position and credit rating. The Crown Prince also pointed out that the State will remain Saudi Aramco's largest shareholder following the transfer, with total ownership of (90.18%) of the company’s shares.

He concluded that PIF continues with its mandate to launch new sectors, build new strategic partnerships, localize technologies and knowledge, and create more direct and indirect job opportunities in the local market.

Mohammed bin Dleim Al-Qahtani, a professor of economics at King Faisal University, said that PIF operates with high intelligence and flexibility in all economic