Under a new direction to diversify before the end of oil, Saudi Arabia is setting up the world’s largest fund, a $2 trillion investment fund,Public Investment Fund (PIF) that will enable it literally buy the world and change markets as they are known today.
The $2 trillion PIF will be the largest public-private company in the world.
Run by Deputy Crown Saudi Prince and heir Mohammad bin Salman Al Saud, almost 31, and son of the current King and chair of the Saudi Council for Economic and Development Affairs, the fund is so huge it can buy Google, Apple, Microsoft, the largest companies in the world and still have billions to spare.
Read more about the fund here.
The $2trillion will be raised from just the sale of 5% of the Saudi oil giant state company, Aramco.
With the new investment fund, Saudi Arabia can acquire all existing hedges, mutual, or holding funds.
Every trader and banker will work under Saudi Arabia in the future. There has never been anything like this in recent world history.
Whether this is Islamic is a whole other story as Islam is said to prohibit futures, hedges and other trades in non actual goods or in forecasts and other capital market systems that artificially inflate prices and ‘gamble.’
The Kingdom royals already own many interest serving banks like Citigroup.