Saudi Arabia’s Crown Prince Mohammed bin Salman has plans to grow his nation’s sovereign wealth fund, Public Investment Fund (PIF), to a whopping $1t. The crown prince announced last week that Saudi Aramco, the state-owned oil giant and world’s largest company, will be making it rain by selling more of its shares over the next several years with the proceeds going to PIF.
Aramco became the world’s largest company in 2019 when it completed the world’s largest initial public offering, raising $25.6b. The company later sold more shares to raise its market capitalization to $29.4b.
The cash from Aramco’s offerings has gone to PIF, the investment vehicle that the crown prince is using to grow and diversify his nation’s economy away from oil revenues. The fund plans to invest $800b in new sectors over the next 10 years and create 1.8m new jobs by 2025.