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Saudi finance minister says no immediate plans to transfer more funds to PIF -Breaking

Saudi finance minister says no immediate plans to transfer more funds to PIF© Reuters. FILE PHOTO – Mohammed al-Jadaan, Saudi Minister of Finance, gestures during his speech at the Saudi Green Initiative Forum, which discussed efforts made by the top-exporting oil country to combat climate change. This was Riyadh (Saudi Arabia), October 23, 2021. REUTERS/Ahmed Ya

Saeed Azhar, Yousef Saba

DUBAI (Reuters – Saudi Arabia’s Finance Minister said Monday that there are no plans for immediate transfers to the Public Investment Fund, the sovereign wealth fund central to its plans to diversify away from oil.

PIF has assets worth over $600 Billion, which is more than double the amount in just two years.

Mohammed al-Jadaan from Finance Ministry said, “I don’t think there is an immediate plan to transfer any money to PIF,” he stated at the World Economic Forum in Davos.

The central bank gave the PIF a $40 billion loan in 2020. Jadaan stated that it was an “exceptional” deal.

Saudi Arabia has transferred 4% from the oil giant in February of this year Saudi Aramco (TAWUL:) The shares of the Tadawul are now valued at $92 billion to the PIF.

Jadaan indicated that Saudi Arabia would use the expected surplus of this year in the quarter to which it will have the “most positive effect on the economy”, such as the National Development Fund (which supports private sector investment).

He stated, “So it is important to ensure that they receive enough money.”

He said, “We can invest with PIF because they’re actually making very great deals in their investment and doing very well both inside Saudi Arabia and out.”

He said that foreign reserves will be examined to determine if they should be increased.

Jadaan stated that Saudi Arabia is expecting economic growth to be 7.4% in 2017 and predicted inflation of between 2.1%-2.3% by 2022.

Inflation can be contained by having petrol prices capsed if oil is below $70

“It’s the end last year when we frozen the price escalation for gasoline in the domestic economy and household at $70. The economy won’t feel the heat if it exceeds $70.