Saudi Aramco sees 8% of its stake transferred to the PIF.

• The PIF’s direct and indirect holding in Saudi Aramco has doubled with the addition of 8% stake being added.
• The stake is estimated to be worth $163 billion based on the company’s market capitalization.
• PIF invested $31.5 billion last year, making it the world’s top spending sovereign wealth fund.

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.

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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.