Either this is an April fool’s joke or they are full of lies and nonsense. Saudis don’t have “$2 trillion” to set up investment funds.
However, now is a perfect opportunity in history to put a permanent end to Wahhabi Islam and the spread of terrorism. Ban them from investing. They Saudis only invest in established and well-known brand built up an entire lifetime by some kafir infidel.
They have no more oil left and they want to spread whatever they have left into properties and businesses around the world. There need to be an international ban on accepting their investment and a ban from allowing them to purchase any companies or properties outside Saudi Barbaria. That will put a permanent dent on the spread of terrorism around the world. Isolate them, corner them and leave them to rot. Whoever trades and invests with them should be charged.
However, truth is Saudi Barbaria doesn’t have “$2 trillion”. They have lied endlessly about their wealth, their oil reserves, their capacity. Saudi Barbaria forbids any comments, publicity or indications that they are somehow a sinking economy. One of the reasons is superstition. In the Saudi culture you must never speak anything truthful, especially if it could indicate a doom, a death, a disease.
According to Texas petroleum geologist Jeffrey J. Brown and Dr. Sam Foucher from 2005 to 2015, Saudi net oil exports have experienced an annual decline rate of 1.4 per cent. Brown and Foucher recently predicting that net exports would plummet to zero in the next 15 years. Now Saudi Arabia’s considerable reserves are being depleted at unprecedented levels, dropping from a 2014 peak of €655bn to €597bn in May – falling by about €10.6bn a month.
According to World Bank data Saudi Arabia’s population stood at about 31 million in 2014. Their GDP stood at $746.2 billion. Their annual GDP growth in 2015 was a meager 2.8%, which is doubtful since SA is a very unproductive country. Like all Muslim nations, they are parasitic by nature. Their contributions to Financial Intermediary Funds (FIF) were a measly $63 million in 2013. In 2010 their contribution to FIF was a mere $5 million and was never above that years prior. So clearly when they realize that their oil is running dry, the contributions to FIF suddenly increased like magic. But what is the purpose behind these “contributions”? Financial Intermediary Funds (FIFs) are multilateral financing arrangements for which the World Bank provides Trustee services that include committing and transferring funds to project implementers (generally international organizations such as multilateral development banks or UN agencies). Surprise, surprise Saudi Barbaria got elected HEAD of the UN Chair of Human Rights panel within a short two years following their spike in “contributions”.
Saudi Arabia’s contributions to IBRD/IDA/IFC Trust Funds took a sudden leap to $305 mil in 2010, while it stood at nil all prior years. IBRD/IDA/IFC are forms of cash, promissory notes or other instruments paid in “contribution” to the World Bank Group by Saudi Arabia. In our dictionary the barbarians view it more of a bribe, which is exactly what it was, and we’d wish we knew what the fine print of their expecations have been behind that “contribution”.
The IMF Director Christine Lagarde got into hot water with the Saudis in 2015 by blurting out the true state of the Saudi economy for the whole world to hear. According to IMF Saudi Arabia was facing a deficit of 21.6 per cent in 2015 and 19.4 per cent in 2016.
Saudi Barbaria is simply making another shadow attempt to appear in better financial shape than they actually are. They may dream to join forces with other barbaric nations into a super-fund which is doubtful to take place since Muslims never get along.
Saudi Arabia planning for the end of the oil age by creating a $2 TRILLION investment fund which would be big enough to buy Google, Apple and Microsoft
- Second-in-line to Saudi Arabian throne announced public investment fund
- The Deputy Crown Prince said the kingdom must ‘diversify its investments’
- PIF will be enough to buy Google, Apple and Microsoft with money to spare
- Kingdom hopes to be economy that doesn’t depend on oil within 20 years
- Saudi Arabia insists it will only freeze output if other key producers do too
Saudi Arabia is preparing for the end of the oil age by creating a $2trillion investment fund which is set to be ‘the largest on Earth’.
The Public Investment Fund (PIF) established by the kingdom’s second-in-line to the throne will eventually be large enough to buy Google, Apple and Microsoft with money to spare.
Deputy Crown Prince Mohammed bin Salman, who oversees the fund, claims that the initial public offering could happen as soon as next year.
It comes as Saudi Arabia, the world’s biggest crude exporter, insists that it will only freeze its oil output if other key producers, including Iran, take a similar measure.
‘What is left now is to diversify investments,’ the 30-year-old prince told Bloomberg, during an interview from the royal compound in the kingdom’s capital, Riyadh.
‘So within 20 years, we will be an economy or state that doesn’t depend mainly on oil.’
It is nearly 80 years since the first oil was discovered in Saudi Arabia but, with crude prices plummeting worldwide, the nation plans to shake its dependence on the market.
One of the first steps will be for Saudi Arabia to sell shares in Aramco’s parent company, which will transform the oil giant into an ‘industrial conglomerate’.
According to the prince, the son of King Salman, the sale of Aramco could come as early as 2017.
What is left now is to diversify investments, so within 20 years, we will be an economy or state that doesn’t depend mainly on oil.
– Deputy Crown Prince Mohammed bin Salman
But if all goes to plan, the fund will eventually be large enough to buy all four of the world’s largest publicly traded companies – Apple Inc., Google parent company Alphabet Inc., Microsoft Corp. and Berkshire Hathaway Inc.
Although the proportion of foreign investments is currently at just five per cent of the fund, PIF plans to increase it to 50 per cent by 2020.
But Prince Mohammed said he doesn’t believe the kingdom has a ‘real problem’ when it comes to low oil prices, despite the fact the price of a barrel of crude oil has more than halved.
‘Undoubtedly, it will be the largest fund on Earth,’ added the prince. ‘This will happen as soon as Aramco goes public.’
The prince went on to confirm that Saudi Arabia will only freeze its oil output if other key producers, including Iran, take a similar measure.
‘If all countries agree to freeze production, we’re ready,’ he said.
‘If there is anyone that decides to raise their production, then we will not reject any opportunity that knocks on our door.’
His remarks come ahead of a meeting of major oil producers led by Russia and Saudi Arabia set to take place in Doha on April 17, to discuss measures to stabilise prices, including a proposal not to pump out oil above a certain level.
Undoubtedly, it will be the largest fund on Earth.
– Deputy Crown Prince Mohammed bin Salman
Iran indicated it was ‘ready to participate’ in the meeting and demanded an exemption from the freeze in order to boost its exports, according to Russian Energy Minister Alexander Novak.
Oil prices are being hit in part owing to the return of Iranian crude to markets after crippling economic sanctions on Tehran were lifted following last year’s nuclear deal between Iran and world powers.
The upcoming meeting in Doha is a follow-up to talks in February between Qatar, Russia, Saudi Arabia and Venezuela, in which they first mooted the output freeze.
Prices have collapsed from levels above $100 seen in mid-2014 largely owing to supply outrunning demand as global economies, particularly China, suffer a growth slowdown.