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

The Economic Times - - Global Business -

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.

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