S. Arabia to transfer Aramco stock in economy overhaul

Saudi Arabia said Sunday it will transfer 4% of the stock in the state-run oil giant Aramco to a sovereign wealth fund, an infusion, valued at nearly 80 billion US dollars, as the kingdom tries to overhaul its energy-dependent economy. The announcement on the state-run Saudi Press Agency comes as the oil firm is valued at just under 2 trillion US dollars and as oil trades above 90 dollars a barrel — its highest level since 2014.

Saudi Crown Prince Mohammed bin Salman, the assertive son of King Salman, made the decision to transfer the stock, the state media report said. Prince Mohammed's plans hope to see that oil wealth pay to create jobs for the kingdom's youth to pivot away from oil over time. The Saudi Arabian Oil Co. has long served as both the main economic engine in the kingdom and the main source of funds for its ruling Al Saud royal family.

Saudi Arabia offered a sliver of shares of the oil firm on Riyadh's Tadawul stock market in 2019. That listing made Aramco one of the world's most-valued companies alongside Apple and Microsoft. A share of Aramco stood at 9.94 US dollars, ahead of trading Sunday.