A 4 percent stake in energy giant Saudi Aramco was relocated to Sanabil Investments, PIF’s investment arm according to Saudi Crown Prince Mohammed bin Salman saying on Sunday via the Saudi Press Agency.
Sanabil is an investment company that earmarks nearly $3 billion yearly to private deals and recently revealed ties to more than 50 venture capital and private equity firms.
The crown prince said the Kingdom is still Aramco’s biggest shareholder with 90.18 percent of shares in the oil firm, with the PIF now controlling 8 percent of said shares.
Read: A potential Aramco subsidiary IPO on Hong Kong’s Stock Exchange
The move is believed to be an attempt at diversifying the national economy and expanding investment opportunities in line with Saudi Vision 2030 with PIF focused on launching new sectors and building strategic economic partnerships.
Aramco noted in a statement that the company is not a party to the transfer and has not entered into any agreements with Sanabil.
The transfer will solidify PIF’s strong financial position and credit rating, the crown prince’s statement said, aimed at transforming the Saudi economy to reduce its reliance on oil revenue.
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