Saudi Arabia has recently increased its stake in oil giant Aramco by transferring an 8% stake to the Public Investment Fund.

With this move, the PIF’s direct and indirect holding in Aramco has doubled, which is a part of the kingdom’s plan to reduce its reliance on oil and diversify its economy.

According to LSEG data, this stake is worth around $163.6 billion based on Aramco’s current market capitalization.

The PIF already owned a 4% stake in Aramco, which was directly transferred in 2022, and another 4% indirectly transferred to Sanabil, which is wholly owned by PIF.

Reuters had previously reported that Saudi Arabia is planning to sell more shares of Aramco, which will help finance the Kingdom’s Vision 2030 program. Aramco raised a record $29.4 billion from its initial public offering before the pandemic.

The PIF declined to comment on which entities the shares would be transferred to. However, the transfer is in line with Saudi Arabia’s long-term initiatives to diversify the national economy, expand investment opportunities, and boost the country’s economy.

More on Saudi Aramco:

According to the state news agency SPA, Crown Prince Mohammed bin Salman, who chairs PIF, stated that “the transfer will also solidify PIF’s strong financial position and credit rating.”

PIF is the centerpiece of the de facto ruler’s ambitious plan to diversify the economy by building “giga projects” and new industries.

It has transformed from a sleepy sovereign investor into a global investment vehicle that makes multi-billion-dollar bets on various sectors such as technology and sports.

PIF invested $31.5 billion last year, making it the world’s top spending sovereign wealth fund. Before the new transfer, it had roughly $700 billion in assets under management.

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The Ministry of Industry and Mineral Resources reported a 10 percent increase in industrial body units in Saudi Arabia, rising to 11,549 in 2023.

Jarrah bin Mohammed Al-Jarrah, spokesman for the Minister of Industry and Mineral Resources stated:

As per the statement by the spokesperson of the ministry, 11,549 factories have received new licenses for 25 industrial activities.

The total estimated investment in these activities is SAR1.541 trillion (USD 399 billion).

The top four activities that received licenses are food products manufacturing, non-metallic mineral products manufacturing, formed metal products manufacturing, and rubber and plastic products manufacturing.

The highest number of industrial licenses totaling 1,043 were issued to National establishments.

licenses were issued to joint and foreign investments 336 with 142 and 194 respectively.’

The Ministry of Industry and Mineral Resources releases industrial indicating data monthly through the National Industrial and Mining information center.

SMEs accounted for the overwhelming majority of the licenses issued accounting for the kingdom’s efforts to support rising businesses which totaled to:

The number of licenses depending on enterprise size:

• Micro-sized enterprises: 15 licenses.
• Small-sized establishments: 1,203 licenses.
• Medium-sized establishments: 158 licenses.
• Large-sized establishments: 3 licenses.

licenses per region:

• Riyadh region: the region had the highest number of licenses issued at 479.
• Eastern region: the second highest number of licenses issued at 340.
• Makkah region: the second highest number of licenses issued at 269.
• Qassim region: the fourth highest number of licenses issued at 87.
• Madinah region: the least number of licenses issued at 79.

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