Saudi Arabia Plans $2-Trillion Megafund for Post-Oil Era
Pot would be big enough to buy world’s four largest companies First step will be sale of Aramco stake by 2018, says prince
or even a year earlier, according to the prince. The fund will then play a major role in the economy, investing at home and abroad. It would be big enough to buy Apple, Google parent Alphabet, Microsoft and Berkshire Hathaway – the world’s four largest publicly traded companies.
P I F u l t i mat e l y pl a n s to increase the proportion of foreign investments to 50% of the fund by 2020 from 5% now, said Yasir Alrumayyan, secretary-general of the fund’s board.
T he bluepr i nt for st r uc t u r a l change follows a series of measures last year to curb spending and prevent the budget deficit from exceeding 15% of gross domestic product. At the end of December, authorities raised the prices of fuel and electricity and pledged to end wasteful budget spending after oil prices plunged. More wil l fol low those “quick f i xe s ” a s p a r t o f a “Nat i on a l Transformation Plan” to be announced within a month, including steps to raise non-oil revenue steadily through various measures including fees and value-added taxes. “We are working on increasing the efficiency of spending,” said Prince Mohammed, who is secondin-line to the throne.