DUBAI: The Public Funding Fund (PIF), Saudi Arabia’s formidable sovereign wealth fund, is in search of to make use of the additional $40 billion it was just lately granted from authorities reserves to profit the Kingdom and its residents when the present coronavirus illness (COVID-19) pandemic is over.
A spokesperson for the PIF stated that the injection from reserves held by the Saudi Arabian Financial Authority — introduced final week — “allow us to tap into a number of local and global investment opportunities at attractive prices. This includes investments in sectors that are well positioned to drive economic growth and value creation and derive benefits for the citizens of our country well beyond the current crisis.”
For the reason that COVID-19 disaster started, the PIF has spent $7.7 billion amassing a portfolio of shake stakes in a number of the best-known company model names on the planet, together with Boeing, Disney, Fb and Marriott Worldwide. It additionally took massive holdings in impartial oil corporations Shell, Complete and BP, in addition to banking giants like Citigroup and Financial institution of America.
The shares of those and different investments within the PIF spending spree had been affected by the dramatic downturn within the US stock market after the primary pandemic associated lockdowns. They’ve since recovered nearly to all-time highs as US authorities took emergency measures to assist its monetary establishments.
Some traders are calculating that there shall be a speedy financial restoration when the lockdowns finish, to ship stock markets hovering once more.
“The PIF’s role is to invest the nation’s wealth in a way that generates long-term attractive returns and a diversified source of wealth for the Saudi people. The uncertainty caused by COVID-19, and the subsequent drop in global oil prices, highlights why our economic diversification efforts are so important. Capital injections from the government are an established source of funding for the PIF, as outlined in our strategy as part of our Vision Realization Program,” the PIF spokesman stated.
The recent sources for the fund, which has $320 billion of belongings beneath administration, will present further firepower to make the most of perceived bargains. Yasir Al-Rumayyan, governor of the PIF, stated final month: “You don’t want to waste a crisis. We’re looking into any opportunities.”