Saudi finance minister says no immediate plans to transfer more funds to PIF
DUBAI, May 23 (Reuters) – Saudi Arabia’s finance minister claimed on Monday there were no fast designs to transfer a lot more cash to the Public Financial commitment Fund (PIF), the sovereign prosperity fund at the centre of the kingdom’s designs to diversify its economy away from oil.
The PIF manages more than $600 billion in assets, a determine that has doubled in about two a long time.
“I think there is no instant prepare to transfer any funds to PIF,” said Finance Minister Mohammed al-Jadaan, speaking at the Environment Economic Discussion board in Davos, Switzerland.
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In 2020, the PIF received a $40 billion injection from the central bank, which Jadaan stated at the time was performed on an “remarkable foundation”.
In February this yr, Saudi Arabia transferred 4% of oil big Saudi Aramco’s shares, now well worth $92 billion, to the PIF.
Jadaan claimed Saudi Arabia would, in the to start with quarter of following calendar year, deploy its predicted surplus from this yr in which it would have “the most positive effect on the economic system”, together with to the Countrywide Enhancement Fund, which supports non-public sector expense.
“So we require to make sure we allocate ample quantity of money to them,” he claimed. “We have alternatives to commit with the PIF simply because they are truly building really very good promotions in their investments and performing incredibly effectively, each inside Saudi and outside the house,” he extra.
“And then you require to glance at, you know, your reserves. Is there probable medium-time period external shocks (so) that you need to have to create far more reserves, or what you have now is ample?”
Jadaan reiterated Saudi Arabia expects financial progress of 7.4% this 12 months and said inflation was seen achieving in between 2.1% and 2.3% by the stop of 2022.
A cap on petrol costs when oil breaches $70 was helping include inflation, he added.
“It was the end of last year we froze the cost escalation of gasoline for the internal financial system and households at $70. So just about anything above $70, the overall economy will not truly feel that warmth.”
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Reporting by Saeed Azhar and Yousef Saba
Crafting by Yousef Saba
Editing by Mark Potter
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