Saudi Arabia's wealth fund aims to nearly double size by 2020

Agencies
October 26, 2017

Riyadh, Oct 26: Saudi Arabia’s main sovereign wealth fund wants to increase its financial clout to SR 1.5 trillion ($400 billion) by 2020 as part of the Kingdom’s efforts to boost private-sector growth and wean itself off oil export dependence.

The assets-under-management goal, laid out by the Public Investment Fund (PIF) on Wednesday, came on the second day of an international conference in Riyadh. It was accompanied by publication of PIF’s first comprehensive business program, outlining targets for investments and returns for 2018-2020.

PIF, which is expected to receive proceeds from the planned sale of 5 percent of state oil company Saudi Aramco’s shares, has currently around $230 billion worth of assets under management. It plans to create 20,000 direct domestic jobs, and 256,000 construction jobs by 2020. This will increase PIF’s contribution to Saudi Arabia’s gross domestic product from 4.4 percent to 6.3 percent, it said in a statement on Wednesday.

Investments will be in sectors such as real estate and infrastructure as well as in new areas of activity in the Saudi economy through the establishment of companies such as the Saudi Arabian Military Industries company and the Saudi Real Estate Refinancing Company.

One of the biggest tasks facing PIF will be the delivery of a $500 billion plan to build a business and industrial zone extending into Jordan and Egypt, announced at the start of the conference on Tuesday.

PIF also set a new target to increase total shareholder return to 4 to 5 percent between now and 2020 from 3 percent, it said on Wednesday.

“The PIF Program represents a vital milestone as we work toward realizing Vision 2030,” Crown Prince Mohammed bin Salman, the economic reform plan’s architect, said in a statement.

The 96-page program said PIF will structure its investments in six areas: Saudi equity holdings, sector development, real estate and infrastructure, mega projects, international strategic investments and a “diversified pool” across global asset classes. It said “long-term” average annual return from these areas would be between 6.5 and 9 percent.

Outside of Saudi Arabia, PIF’s investments will be in a number of assets such as fixed-income, public equity, private equity and debt, real estate, infrastructure and alternative investments such as hedge funds, the fund said.

PIF Managing Director Yasir Al-Rumayyan said the fund was open to investing in more big ticket items such as US ride services company Uber.

It also outlined its four major sources of funding to include capital injections from the government, government asset transfers, loans and debt instruments as well as retained earnings from investments.

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News Network
April 28,2020

Riyadh, Apr 28: The number of confirmed coronavirus cases in Saudi Arabia crossed the critical 20,000-mark on Tuesday with the discovery of 1,266 new cases. Eight new deaths were also recorded during the last 24 hours, bringing the virus-related death toll to 152.

Twenty-three percent of the new cases are of Saudi nationals, while 77 percent are of non-Saudi residents, Saudi Press Agency (SPA) quoted the ministry spokesman Dr. Muhammad Al-Abdel Ali as saying.

Out of the total 20,077 cases till Tuesday, 17,141 cases are active, he added. A total of 118 cases are currently critical, the spokesman said.

Out of the 1,266 new cases, 327 were reported in Makkah, 273 in Madinah, 262 in Jeddah, and 171 in Riyadh. There were 58 cases in Jubail, 35 in Dammam, 32 in Taif, 29 in Tabuk and 18 in Al-Zulfi. Additionally, nine cases were recorded in Khulais; eight in Buraidah; seven in Al-Khobar; five in Hufof; four each in Qatif and Ras Tanura; three in Adhum; two each in Al-Jafr, Al-Majaridah, Yanbu, Bisha and Diriyah; and one each in Abha, Khamis Mushayt, Baqeeq, Dhahran, Dhalum, Sabiya, Hafr Al Batin, Hail, Sakaka, Wadi Al-Dawasir and Sajr, the spokesman said.

The Kingdom saw a spike in cases when the health ministry began its field-testing efforts nearly two weeks ago, targeting suspected infection cluster areas. Since then, there has been a steady increase in daily cases.

Till Monday, around 1 million people were screened in various neighborhoods throughout the Kingdom.

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News Network
May 20,2020

Cairo, May 20: A senior Kuwaiti lawmaker has called for imposing a tax on expatriates’ remittances to shore up the country’s finances.

MP Khalil Al Saleh, the head of the parliament’s Human Resources Committee, has presented a draft law on the proposed tax to the legislature.

“Imposing fees on expatriates’ transfers will have a role in improving the state's revenues and diversify sources of income,” he told Al Rai newspaper.

Migrant workers transfer about 4.2 billion dinars annually from Kuwait, he added, citing figures from Kuwait’s Central Bank.

“This system is in effect in most countries of the world and in more than one Gulf country. Expats there have not objected to it. Allowing this money to exit the country is very dangerous and has a direct effect on economy,” MP Al Saleh said.

“We do not target brotherly expats because imposing symbolic fees on financial transfers will not affect their money, but will have a positive effect on the state’s sources,” he said. “This has become a necessity after the money transferred outside Kuwait has reached 4.2 billion dinars annually without the state [Kuwait] making any benefit from this.”

Foreign workers make up 3.3 million of Kuwait’s 4.6 million population.

Several Kuwaiti public figures have recently pushed for redrawing the demographic imbalance in the country, accusing expatriates of straining health facilities and increasing the Covid-19 threat.

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News Network
June 30,2020

Dubai, June 30: The United Arab Emirates is all set to reopen mosques and other places of worship at 30 per cent capacity from July 1.

However, Friday prayers will remain suspended in the country, said Saif Al Dhaheri, Spokesperson for the National Crisis & Emergency Management Authority (NCEMA) during a virtual press briefing on Monday.

The official said certain mosques in industrial areas, labor residential areas, shopping malls and public parks will remain closed until further notice.

He said health authorities already conducted Covid-19 tests for Imams and workers serving at the mosque to ensure health and safety of the worshippers.

Al Dhaheri also spelt out guidelines that worship centres have to follow to welcome worshippers.

A distance of three metres should be observed between each worshippers and no handshakes are allowed. Worshippers will have to perform ablutions at home. People should bring their own personal copies of Holy Quran or read from digital copies. It is also mandatory for all worshippers to download and activate contract tracing app AlHosn.

"We urge the public to cooperate by following precautionary measures including social distancing. Children under 12 years old, the elderly as well as individuals with chronic diseases should avoid going to mosques," said the official.

The UAE first announced the suspension of public prayers in all places of worship on March 16, which was extended until further notice on April 9.

As Khaleej Times reported, places of worship had been preparing to reopen since the last few weeks by sanitizing parking lots and outdoor areas, entrances, main prayer halls and ablution areas.

The spokesperson also announced that the Private and commercial boat trips and water sports will be allowed to operate at reduced capacity of 50 per cent but by following precautionary measures.

The total number of recovered cases of Coronavirus (Covid-19) in the UAE has reached 37,076 with 665 cases recovered today after receiving treatment. Since the beginning of June, UAE has had a daily recovery average of 660 cases, said Dr. Amna Al Shamsi, Spokesperson for the UAE government.

Guidelines

1. Maintain a distance of 3 metres between worshippers.

2. No handshakes allowed.

3. Ablutions must be performed at home.

4. To read the Holy Quran, worshippers must bring their own copies.

5. All worshippers must download and activate contact tracing app AlHosn

6. People in vulnerable categories like those with chronic diseases and the elderly must not visit the mosques.

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