Urgent: Saudi Sovereign Achieves Record Profits Thanks to Crown Prince’s Ambition By Investing.com


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Investing.com – Successes continue thanks to the ambitious vision of Saudi Crown Prince Mohammed bin Salman, especially after the Saudi sovereign fund achieved record profits.

The Public Investment Fund achieved profits of 85.7 billion riyals during the year 2021, compared to profits of 76.1 billion riyals for the year 2020, through continuous operations.

During the year 2020, the fund achieved profits of 221.2 billion riyals, but it included exceptional profits of 145 billion riyals, resulting from the sale of SABIC (TADAWUL:).

The value of the assets of the Public Investment Fund increased by 479 billion riyals by 23% as a result of the addition of new investments and the merger of Samba Bank with the National Bank of Saudi Arabia.

More profit

It seems that the Saudi sovereign fund is heading to raise billions of dollars as part of its plan to expand its investments in several sectors to achieve the Kingdom’s 2030 plan, which aims for a resilient and diversified Saudi economy.

And Bloomberg Agency said that the Saudi sovereign wealth fund is pressing ahead with plans to reduce its stakes in some of the largest companies in the kingdom, and raise billions of dollars for new investments.

According to the news, the Public Investment Fund recently held informal talks with investment banks about reducing its holdings in several state-backed companies, which trade on the local stock exchange.

Sources told the agency that the Public Investment Fund is also studying plans to list more state-owned assets.

Huge investment

The fund has investments in companies across a range of industries from the Saudi Electricity Company (TADAWUL:) and ACWA Power utilities to the Tadawul Holding Group.

The fund also owns majority stakes in the $53 billion Saudi Mining Company for Commodities and the $54 billion Saudi Telecom Company.

In addition to the fund’s stakes in banks, including the Saudi National Bank and Riyadh and Alinma Bank, in addition to owning 4% of Aramco shares (TADAWUL:).

Prince’s ambition

Any stake sales will come as Riyadh presses ahead with raising capital to diversify its economy in line with Crown Prince Mohammed bin Salman’s ambitions to move away from oil.

At the heart of this plan, known as Vision 2030, is the Public Investment Fund, pumping billions of dollars into stock and asset markets globally.

The Public Investment Fund also plans to invest $40 billion domestically annually until 2025 and help fund ambitious projects.

The fund, which is chaired by the crown prince, said it wants to increase its assets to about $1.1 trillion by 2025.

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