AP, Riyadh :
Saudi Arabia on Tuesday opened a major investment conference aimed at shining a spotlight on the country’s efforts to overhaul its economy and society after being jolted into action following a plunge in oil prices that threatened the kingdom’s main source of revenue and its long-term stability.
The conference, dubbed the Future Investment Initiative , is being hosted by Saudi Arabia’s sovereign wealth fund. The event is being attended by giants in the business world and top Saudi officials.
At the heart of the conference are Saudi reform efforts to transform its sovereign wealth fund into the world’s largest. The kingdom hopes to do this by listing less than 5 percent of state-owned oil firm Aramco on the Saudi stock exchange and an international exchange, then transferring control of those funds to its Public Investment Fund, also known as PIF.
Saudi Arabia says that that through the sale of Aramco shares the PIF could one day control $2 trillion – double that of Norway’s, which at more than $1 trillion is the currently the world’s largest sovereign wealth fund. It’s unclear how much PIF currently controls.
Recently, reports emerged that Saudi Arabia was considering holding off on the international portion of the IPO in favor of a private offering from a key investor like China. Saudi officials, however, insist Aramco is on track for listings as early as next year.
PIF managing director Yasir al-Rumayyan, who is also on the board of Aramco, addressed those concerns at the forum in Riyadh on Tuesday.
“Everything in on track, 2018 is our target. There is nothing that I know about which can take us off track,” he said.
Meanwhile, PIF has grabbed headlines with some major international investments, including $3.5 billion in ride-hailing service Uber last year. It’s also joined forces with Japan’s Softbank and other leading technology and investment funds to create a massive fund to invest in technologies like artificial intelligence.
Al-Rumayyan said Tuesday PIF is contributing $20 billion to a $50 billion health care and real estate fund with U.S. private equity firm Blackstone. The Saudi fund already has $20 billion invested in a U.S.-focused infrastructure fund with Blackstone.
Domestically, PIF is embarking on a number of major projects. One plan includes the development of semi-autonomous islands off of Saudi Arabia’s Red Sea coast, where the kingdom’s ultraconservative rules on gender segregation and women’s dress might not apply.
The fund is also creating a company to build new hotels and prime real estate around Muslim holy sites in Mecca and Medina. It launched an entertainment investment company to cater to the needs of Saudi Arabia’s youth and oversee the development of a Six Flags theme park outside the capital, Riyadh.
Saudi Arabia on Tuesday opened a major investment conference aimed at shining a spotlight on the country’s efforts to overhaul its economy and society after being jolted into action following a plunge in oil prices that threatened the kingdom’s main source of revenue and its long-term stability.
The conference, dubbed the Future Investment Initiative , is being hosted by Saudi Arabia’s sovereign wealth fund. The event is being attended by giants in the business world and top Saudi officials.
At the heart of the conference are Saudi reform efforts to transform its sovereign wealth fund into the world’s largest. The kingdom hopes to do this by listing less than 5 percent of state-owned oil firm Aramco on the Saudi stock exchange and an international exchange, then transferring control of those funds to its Public Investment Fund, also known as PIF.
Saudi Arabia says that that through the sale of Aramco shares the PIF could one day control $2 trillion – double that of Norway’s, which at more than $1 trillion is the currently the world’s largest sovereign wealth fund. It’s unclear how much PIF currently controls.
Recently, reports emerged that Saudi Arabia was considering holding off on the international portion of the IPO in favor of a private offering from a key investor like China. Saudi officials, however, insist Aramco is on track for listings as early as next year.
PIF managing director Yasir al-Rumayyan, who is also on the board of Aramco, addressed those concerns at the forum in Riyadh on Tuesday.
“Everything in on track, 2018 is our target. There is nothing that I know about which can take us off track,” he said.
Meanwhile, PIF has grabbed headlines with some major international investments, including $3.5 billion in ride-hailing service Uber last year. It’s also joined forces with Japan’s Softbank and other leading technology and investment funds to create a massive fund to invest in technologies like artificial intelligence.
Al-Rumayyan said Tuesday PIF is contributing $20 billion to a $50 billion health care and real estate fund with U.S. private equity firm Blackstone. The Saudi fund already has $20 billion invested in a U.S.-focused infrastructure fund with Blackstone.
Domestically, PIF is embarking on a number of major projects. One plan includes the development of semi-autonomous islands off of Saudi Arabia’s Red Sea coast, where the kingdom’s ultraconservative rules on gender segregation and women’s dress might not apply.
The fund is also creating a company to build new hotels and prime real estate around Muslim holy sites in Mecca and Medina. It launched an entertainment investment company to cater to the needs of Saudi Arabia’s youth and oversee the development of a Six Flags theme park outside the capital, Riyadh.
