Sovereign Wealth Funds Rise & Shine in the GCC (Wealth Worth over USD 3 trillion)

[Saif al-Arab]

Yes it is, very good trend. A major news, Softbank is starting a humongous $100B tech fund, they put up $25B on their own, rest is $45B is from Saudi sovereign weath fund, $15B from Abu Dhabi investor Mubadala Development Co. ($15 billion), rest from others. I posted here https://defence.pk/pdf/threads/new-...-worlds-largest-sovereign-funds.328675/page-7
I wish Chinese and GCC SWF can joint-start venture funds for TMT, infra, advanced manufacturing and financial sectors.

No doubt about that my friend. The GCC, China (Taiwan) and Japan are dominating this field heavily (almost single-handedly) so cooperation is only a natural thing. Looking forward to more exciting news.

 

[Saif al-Arab]

#BUSINESS NEWS
JANUARY 28, 2018 / 7:46 PM / 6 DAYS AGO
Saudi foreign reserves rise for third straight month

Reuters Staff

DUBAI (Reuters) - The Saudi Arabian central bank’s foreign reserves rose in December for a third consecutive month, a sign that higher oil prices may be easing pressure on the government’s finances, official data showed on Sunday.

The bank’s net foreign assets grew $2.0 billion from November to $488.9 billion last month, after increasing $1.0 billion in November and $8.3 billion in October. It was the first time since mid-2014 that the reserves have risen for three straight months.

The government has been using the reserves, which peaked at $737 billion in August 2014, to cover a big budget deficit caused by low oil export receipts.

The central bank did not explain the reasons for the December data, but a jump in oil prices to three-year highs has lifted revenues, and this may have reduced the need for the government to draw down the reserves - though not entirely removed it, as Riyadh is still running a deficit.

Other factors may also be responsible for the rise in reserves, such as changes in the pattern of transfers of money to Saudi Arabia’s sovereign wealth fund, and weakness of the U.S. dollar, which boosts the non-dollar portion of the assets.

Also, the government launched a massive crackdown on corruption in November, saying it aimed to recover $100 billion of illicit funds in financial settlements with suspects. Some money from settlements may have bolstered the reserves.

The foreign assets, the vast majority of which are believed to be in U.S. dollars, are held mostly in the form of securities holdings and bank deposits. Securities holdings rose in December while deposits edged down.

Sunday’s data also showed outstanding bank loans to the private sector shrank 0.8 percent from a year earlier in December, the 10th straight month of falling bank lending.

https://www.reuters.com/article/us-...s-rise-for-third-straight-month-idUSKBN1FH0VE

Great news. 12 billion USD growth in 3 months time. The economy back on track, largest state budget ever, fourth least indebted country in the world, 130 billion USD returned during the corruption probe (more to come) etc. Not too bad and could be worse.

Detainees held at Saudi Arabia’s Ritz-Carlton released or moved, 56 remain in custody: Attorney General
ARAB NEWS | Published — Tuesday 30 January 2018

The Ritz Carlton in Riyadh (Reuters)

DUBAI: The Saudi Arabian Attorney General, Sheikh Saud Al-Mojeb, said on Tuesday that 56 corruption suspects remained in custody out of the 381 high profile figures detained on graft allegations.
He said he decided to release all those proven not guilty, as well as others who had agreed financial settlements with the government after admitting to corruption allegations.
Mojeb said the total settlements with the suspects had topped $130 billion, which came in various forms of assets.
News broke earlier on Tuesday that Saudi authorities had released all remaining detainees from Riyadh’s Ritz-Carlton Hotel, which had been used as an interrogation center in a crackdown on corruption, according to a Saudi official.
“There are no longer any detainees left at the Ritz-Carlton,” the official told Reuters, speaking on condition of anonymity under briefing rules.
He did not say how many suspects remained in detention at other locations in Saudi Arabia. Some are believed to have been moved from the Ritz to prison after refusing to admit wrongdoing and reach financial settlements with the authorities.
He said those who remained in custody were still under investigation as the legal procedures continued.
Among top businessmen caught up in the purge were Prince Alwaleed, owner of global investor Kingdom Holding, and Waleed Al-Ibrahim, who controls influential regional broadcaster MBC.
MBC said the investigation found Ibrahim completely innocent of wrongdoing and Prince Alwaleed has insisted he is innocent, although Saudi officials said both men agreed to settlements after admitting unspecified “violations.”
In an interview with Reuters at his suite in the Ritz-Carlton hours before he was released on Saturday, Prince Alwaleed said he had been well-treated in custody and described his case as the result of a misunderstanding.
He showed off the comforts of his suite’s gold-accented private office, a dining room and a kitchen which was fully stocked with his preferred vegetarian meals.
The hotel has 492 guest rooms and suites and 52 acres (21 hectares) of landscaped gardens, according to its website. It has said it will reopen to the public in mid-February, with a nightly rate for its cheapest room of $650.
(With AFP and Reuters)

http://www.arabnews.com/node/1235891/saudi-arabia

https://twitter.com/i/web/status/940719885016973312

WEF = World Economic Forum.

https://twitter.com/wef

https://www.forbes.com/sites/ellenr...et-is-the-countrys-largest-ever/#3e6a94475e29

https://www.reuters.com/article/us-...-austerity-drive-in-2018-budget-idUSKBN1ED2FB

https://twitter.com/i/web/status/943269209135550466

https://twitter.com/i/web/status/943136767821172736

https://twitter.com/i/web/status/937843913099849728

https://twitter.com/i/web/status/959851370672197632

 

[The SC]

Iraq is going to become a big player in the region too..according to the fact that the Iraqi known Oil reserves amount to 156 billion barrels..But the calculation of these reserves were in accordance with the method of extraction from the 70s..
These fields are estimated at 800 billion barrels if Iraq decides to update the size of the reserves that can be extracted according to modern technology similar to that of its sisters in the Gulf countries, including Saudi Arabia, UAE and Kuwait..
These fields are within the limits of the actual 600 billion barrels of reserves, not to mention the presence of fields that are not added to the Iraqi reserves, including fields in Wasit and in the Qadisiyah and Muthanna, towards the Saudi border.. After an exploration of Lukoil of a small oil patch showed that the well when dug for exploration had 10 billion barrels below it and the company's pessimistic estimates expect to find in this block alone around 100 billion barrels, and the optimistic estimates at 200 billion barrels..
Not to mention the gas fields, including giant fields in the provinces of Anbar, Mosul, Salahuddin, Diyala and Baghdad if completed and developed.. A geographical survey will show that it exceed Iran's size of gas reserves in contrast to the current status of Iraq, which calculated only gas associated with the Oil fields..

Food for thoughts..

 

[Yingluck]

Sovereign fund is a disgusting byproduct of USD hegemony as world reserve currency. Since nations states are not allowed to hoard too much gold, the useless USD need to be recycled back into USA asset.

GCC see their wealth vaporize when USA is selling 1 sqm of land in mahattan for 1 million dollars.

 

[Saif al-Arab]

Sovereign fund is a disgusting byproduct of USD hegemony as world reserve currency. Since nations states are not allowed to hoard too much gold, the useless USD need to be recycled back into USA asset.

GCC see their wealth vaporize when USA is selling 1 sqm of land in mahattan for 1 million dollars.

Do you even know what a sovereign wealth fund is? What do you know about Saudi Arabian and other GCC states and their assets abroad? Something tells me close to nothing.

 

[Saif al-Arab]

https://twitter.com/i/web/status/969973173788667904

But, but, KSA is "collapsing" in a imaginary galaxy.

 

[Saif al-Arab]

Saudi wealth fund set to pocket billions from Aramco-Sabic deal

Javier Blas, Wael Mahdi
July 20, 2018

A potential deal between Saudi Arabia’s state-owned oil and petrochemical giants could enable the country’s sovereign wealth fund to raise billions of dollars it had hoped to collect from Aramco’s stalled initial public offering. Saudi Aramco, the world’s largest oil company, is considering buying a strategic stake in the Sabic petrochemical group, Aramco said on Thursday in a statement, adding that the talks were at a “very early stage.” The Public Investment Fund, the country’s sovereign wealth fund, controls 70 percent of Sabic, as Saudi Basic Industries Corp. is known, with the rest of the company’s shares listed on the Saudi stock exchange. If Aramco does buy a stake, the deal would let the PIF convert at least part of its shareholding into cash that it could then use to make other investments overseas. At current market prices, the PIF’s stake in Sabic is worth about $70 billion. For the government, the transaction would simply involve moving money from one pocket to another, as Aramco, Sabic and the PIF are all state-run entities. The PIF, which controls about $150 billion in Saudi-listed companies, had planned to raise at least $100 billion through the Aramco IPO in the second-half of 2018. That listing has now been delayed until 2019 at the earliest and may be postponed indefinitely. Uneven Benefits The purchase of a big stake in Sabic could boost Aramco’s valuation, but only to a point. Sabic’s current market capitalization is slightly more than $100 billion — just a fraction of the $2 trillion valuation that Saudi Crown Prince Mohammed bin Salman is seeking for the oil behemoth. Aramco may also have to take on debt to pay for a large stake, reducing its appeal to investors. Aramco, known formally as Saudi Arabian Oil Co., said it didn’t plan “to acquire any publicly held share” of the petrochemical company. The PIF confirmed the talks in a separate statement. The biggest beneficiary of such a deal would be the PIF, which could raise money for its investments, according to two people familiar with the matter, who asked not to be identified because the discussions aren’t public. By comparison, Aramco, if it bought only part of Sabic, wouldn’t be able to reap all the synergy benefits to be gained from a full acquisition. SoftBank, Blackstone Under the leadership of Yasir Othman Al-Rumayyan, the sovereign wealth fund is shifting its investment focus from domestic — with stakes in the likes of Sabic and National Commercial Bank — to international, funneling billions of dollars into high-profile overseas deals. The fund lies at the heart of Saudi Arabia’s effort to reduce its reliance on oil revenue under an economic transformation plan known as Vision 2030. In addition to running the PIF, Othman Al-Rumayyan is also a director at Aramco. So far, the PIF has struck an agreement to invest $45 billion in SoftBank Group Corp.’s technology fund, committed $20 billion to an infrastructure fund with Blackstone Group LP and said it plans to invest about $1 billion in Virgin Group’s space companies. It’s unclear how Aramco would fund the acquisition of a stake in Sabic. The oil company has invited banks to pitch for advisory roles for a potential deal, according to a person familiar with the matter. Aramco is investing heavily to become a major producer of chemicals, to enhance its appeal to potential investors if the IPO is revived and also to reduce its dependence on pumping raw crude. The company is already working with Sabic, one of the world’s largest petrochemical makers, to turn crude directly into chemicals that are the building blocks for plastics and other commonly used consumer materials. Aramco also owns a large stake in the $20 billion Sadara petrochemicals joint-venture with DowDuPont Inc. “Our goal is to be a top-tier energy and chemical company by 2030,” Abdulaziz Al-Judaimi, Aramco’s senior vice president of downstream, said in an interview last year. “We will expand organically, but we also see inorganic opportunities,” he said, signaling an appetite for making deals that’s rare for a company with little experience in mergers and acquisitions. “Chemicals is a global business.” Bloomberg

Read more at: https://www.dealstreetasia.com/stories/aramco-sabic-saudi-sovereign-fund-102323/

RDIF ANNOUNCES INVESTMENT BY SAUDI ARABIA’S SOVEREIGN WEALTH FUND IN LOGISTICS OPERATOR PLT
Press release, 14.06.2018

Moscow, June 14, 2018 - The Russian Direct Investment Fund (RDIF, the sovereign fund of the Russian Federation) announces an investment by Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), in Professional Logistics Technologies (PLT)—one of Russia’s top 5 logistics operators. The agreement was reached during the visit of the Crown Prince, Minister of Defense of Saudi Arabia Mohammad bin Salman Al-Saud to Russia.

The investment will be used to build high-quality logistics infrastructure facilities to meet the growing need of Russian companies to improve supply chain efficiency.

Kirill Dmitriev, CEO of RDIF, said:
"The Public Investment Fund’s investment in the PLT project is a landmark moment for the development of Russia’s logistics infrastructure. We are delighted with this opportunity to strengthen cooperation with the Public Investment Fund. The partnership between RDIF and PIF significantly strengthens investment and economic relations between Russia and Saudi Arabia, and is an excellent example of sovereign funds interacting at a global level."

***

Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Further information can be found at www.rdif.ru

Public Investment Fund - In March 2015, the Council of Ministers issued a decree to transfer oversight of the Public Investment Fund to the Council of Economic and Development Affairs (CEDA). As part of this process, a new Board was appointed, chaired by His Royal Highness the Crown Prince Mohammad bin Salman Al-Saud.

To help achieve Saudi Arabia’s vision of a sustainable, diversified economy, the Board of Directors has taken several steps to clearly define the Public Investment Fund’s vision, objectives and strategy in line with Saudi Vision 2030.

The Public Investment Fund is developing a portfolio of high quality domestic and international investments, diversified across sectors, geographies and asset classes. Working alongside global strategic partners and renowned investment managers, PIF acts as the Kingdom’s main investment arm to deliver a strategy focused on achieving attractive financial returns and long-term value for the Kingdom of Saudi Arabia. The Public Investment Fund aims to be a global investment powerhouse and the world’s most impactful investor, enabling the creation of new sectors and opportunities that will shape the future global economy, while driving the economic transformation of Saudi Arabia. Further information can be found at www.pif.gov.sa

PLT was set up by RDIF, Mubadala and other co-investors in 2016 to expand and enhance Russia’s grade A logistics infrastructure and to meet demand from Russian and international companies for high quality well managed logistics infrastructure. Investors are planning to grow the portfolio of PLT’s modern logistics facilities to become the leading player in logistics facilities in Russia with a network of facilities throughout the country. PLT is committed to implementing some of the best practices of the world’s leading logistics operators and development companies. Further information can be found at www.pltrussia.ru

For additional information contact:
Arseniy Palagin
Russian Direct Investment Fund
Press Secretary
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
E-mail: arseniy.palagin@rdif.ru

Andrew Hayes / Andrew Leach
Hudson Sandler
Tel: +44 (0) 20 7796 4133

https://rdif.ru/Eng_fullNews/3261/