By Yousef Saba and Saeed Azhar
DUBAI (Reuters) – Saudi Arabia’s finance minister reported on Monday there ended up no immediate ideas to transfer much more funds to the Public Expenditure Fund (PIF), the sovereign wealth fund at the centre of the kingdom’s plans to diversify its financial system absent from oil.
The PIF manages more than $600 billion in belongings, a determine that has doubled in about two many years.
“I think there is no quick prepare to transfer any money to PIF,” stated Finance Minister Mohammed al-Jadaan, speaking at the Environment Economic Forum in Davos, Switzerland.
In 2020, the PIF bought a $40 billion injection from the central bank, which Jadaan reported at the time was performed on an “extraordinary basis”.
In February this calendar year, Saudi Arabia transferred 4% of oil big Saudi Aramco’s shares, now well worth $92 billion, to the PIF.
Jadaan said Saudi Arabia would, in the very first quarter of subsequent 12 months, deploy its anticipated surplus from this year exactly where it would have “the most good impact on the financial state”, which includes to the National Development Fund, which supports private sector investment.
“So we have to have to make absolutely sure we allocate enough quantity of revenue to them,” he reported.
“We have options to commit with the PIF for the reason that they are in fact making very very good specials in their investments and undertaking extremely very well, both of those within Saudi and outside the house,” he added.
He also stated overseas reserves would be seemed at to take into consideration irrespective of whether they need to be bolstered.
Jadaan reiterated Saudi Arabia expects economic growth of 7.4% this year and mentioned inflation was viewed achieving among 2.1% and 2.3% by the finish of 2022.
A cap on petrol costs when oil breaches $70 was assisting incorporate inflation, he additional.
“It was the conclude of very last yr we froze the cost escalation of gasoline for the interior financial system and homes at $70. So just about anything earlier mentioned $70, the overall economy will not really feel that warmth.”
(Reporting by Saeed Azhar and Yousef Saba Producing by Yousef Saba Enhancing by Mark Potter)