Saudi Arabia is attempting to free the country from its dependence on oil money. It has revealed its policy to create a Public Investment Fund to process the decision.
According to media reports, a top Saudi prince has declared new components of a plan to reduce the kingdom’s heavy reliance on oil. While there has been significant drop in world prices, shock waves went through the Saudi economy.
Deputy Crown Prince Mohammed bin Salman told the press that the fund will handle more than $2 trillion dollars by selling and transforming shares in Aramco’s parent company.
Although, there are expectations that the plan could attained as early as 2017, but it is supposed to begin in 2018. According to New York Times, the fund could become the world’s largest.
“Undoubtedly, it will be the largest fund on earth,” said Prince Mohammed.
“This will happen as soon as Aramco goes public.”
Mohammed is considered second in line to the Saudi throne. He has risen to the position of the most powerful and dynamic official in the country.
Mohammed believes that the country will soon have adequate money to buy “four of the world’s largest publicly traded companies, including Apple and Microsoft.”
He also claimed that the fund is focusing on “two opportunities outside Saudi Arabia.” However, the prince didn’t name them.
He said he was certain enough that at least one would go through.
Currently, Norway’s fund, called the Government Pension Fund Global, is believed to be the world’s largest fund. It is a “so-called sovereign wealth fund.”
The fund has an investment of around $850 billion in investment.
The declaration was introduced as Saudi Arabia struggles to restructure its economy. Saudi Arabia is the world’s largest oil exporter.