Crown Prince Mohammed bin Salman stated on Sunday that a 4% share in Saudi Aramco has been transferred from state ownership to Sanabil Investments, the investment arm of the Kingdom’s sovereign wealth fund.
The state continues to be Aramco’s largest stakeholder, holding 90.18 percent of the company’s shares, according to the crown prince, Saudi Press Agency said.
The wealth fund now owns a total of 8% of the shares in Aramco following a similar transfer last year for tens of billions of dollars.
In accordance with Saudi Vision 2030, Mohammed bin Salman stated that this transfer of stakes is a part of Saudi Arabia’s long-term measures to strengthen and diversify the domestic economy and increase investment possibilities.
According to its website, Sanabil, an investment firm with offices in Riyadh, dedicates about $3 billion annually to private deals.
The move, the crown prince said, will enable the Public Investment Fund make the most of its resources and possibly improve its already good financial position and credit standing.
He continued by saying that the PIF will keep launching new industries, developing strategic business alliances, and localizing knowledge and technology, all of which would eventually lead to the development of more direct and indirect employment in the local labor market.
The transfer, according to Aramco’s announcement to Tadawul, would not change the overall number of shares that the company has issued because the transferred shares will rank on par with the company’s other existing ordinary shares.
The move will not affect the company’s operations, strategy, dividend distribution policy, or governance framework, according to the statement.
The oil corporation further stated that Aramco is not a party to the transfer and has not engaged into any agreements, making this a private transfer between the state and Sanabil Investments.