Saudi Aramco to transfer 4% stake to PIF to boost renewable energy development

• Saudi Public Investment Fund (PIF) is one of the largest investors in Saudi renewable energy

• PIF is authorized by the Saudi government to invest 70% of its assets in clean energy

• Saudi Aramco will not receive any gain from the 4% stake transfer

Sinochem News reported on February 13, 2022 that the world's largest oil exporter Saudi Aramco (Saudi Aramco), the world's largest oil exporter, said on February 13 in a filing to its stock exchange The Saudi stock exchange (Tadawul) said in a statement that the company transferred a 4 percent stake to the country's sovereign wealth fund, the Saudi Public Investment Fund (PIF), which is expected to use the proceeds for domestic projects

PIF is one of the biggest backers of renewable energy projects in Saudi Arabia, including $500 billion in future new energy development

Robin Mills, chief executive of energy consultancy Kalmar Energy, said the funds could be used for renewable energy, with the Saudi Neom Future City project accounting for "a significant portion of that funding"

PIF is authorized by the Saudi government to invest 70% of its assets in renewable projects in Saudi Arabia

PIF will continue to achieve its strategic goals by maximizing the value of its assets, launching new industries, building strategic partnerships and localizing knowledge and technology

Aramco and PIF are close because Aramco Chairman Yasser Rumeyen is also the managing director of the Saudi sovereign wealth fund

"Following the share transfer, the government of the Kingdom of Saudi Arabia remains the largest shareholder of Saudi Aramco, holding more than 94 percent of the shares

　　Aramco added that the share transfer was a "private" transaction between the government and PIF, and that Aramco was not a party to the share transfer and that no agreement had been reached on the payment or proceeds of the transfer

　　Aramco debuted on the Saudi stock exchange (Tadawul) in 2019, raising $25.