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DUBAI, May 23 (Reuters) – Saudi Arabia’s finance minister said on Monday there had been no immediate strategies to transfer far more funds to the General public Expenditure Fund (PIF), the sovereign prosperity fund at the centre of the kingdom’s strategies to diversify its overall economy away from oil.
The PIF manages around $600 billion in assets, a determine that has doubled in about two many years.
“I feel there is no rapid approach to transfer any money to PIF,” explained Finance Minister Mohammed al-Jadaan, talking at the Environment Financial Discussion board in Davos, Switzerland.
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In 2020, the PIF received a $40 billion injection from the central financial institution, which Jadaan mentioned at the time was carried out on an “extraordinary basis”.
In February this 12 months, Saudi Arabia transferred 4% of oil huge Saudi Aramco’s shares, now really worth $92 billion, to the PIF.
Jadaan explained Saudi Arabia would, in the to start with quarter of future 12 months, deploy its envisioned surplus from this 12 months exactly where it would have “the most optimistic affect on the overall economy”, like to the National Progress Fund, which supports non-public sector investment decision.
“So we have to have to make guaranteed we allocate plenty of quantity of dollars to them,” he stated. “We have possibilities to invest with the PIF due to the fact they are really making very superior discounts in their investments and undertaking really perfectly, both of those inside Saudi and outdoors,” he included.
“And then you need to have to look at, you know, your reserves. Is there possible medium-expression external shocks (so) that you will need to create much more reserves, or what you have now is ample?”
Jadaan reiterated Saudi Arabia expects financial advancement of 7.4% this calendar year and stated inflation was viewed achieving between 2.1% and 2.3% by the conclude of 2022.
A cap on petrol charges when oil breaches $70 was serving to have inflation, he extra.
“It was the conclude of previous yr we froze the price tag escalation of gasoline for the inner financial system and homes at $70. So just about anything previously mentioned $70, the overall economy will not really feel that warmth.”
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Reporting by Saeed Azhar and Yousef Saba
Creating by Yousef Saba
Modifying by Mark Potter
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