Saudi Arabia is about to approve the launch of its first sovereign wealth fund with an initial capital of 20 billion riyals (Dh19.4bn), the Financial Times said yesterday.
The fund, which will be set up by the state-controlled Public Investment Fund (PIF), will act as "a portfolio investor focusing on maximising long-term rates of return", it said, quoting the PIF's secretary general, Mansour Al Maiman.
He said new fund could raise its capital or increase the size of assets under management as needed.
PIF is attached to the finance ministry and invests exclusively in local assets.
Mohammed Al Jasser, Vice-Governor of Central Bank, said in January that Saudi Arabia is considering setting up a $6bn (Dh22bn) sovereign wealth fund to invest the oil wealth, but could "live without it" if debate about suspected abuses by similar foreign investment vehicles continues. (Reuters)