German newspaper: With “billions” … Saudi Arabia changes its investment strategy


The sovereign wealth fund in Saudi Arabia is changing its strategy and drastically shifting to Index fundsThis is how the German newspaper Handelsblatt launched a report about Riyadh changing its investment approach to avoid the Corona and oil crises.

According to the newspaper, he invested Saudi Sovereign Wealth Fund Heavily in individual stocks during the Corona crisis, but now he has changed his investment approach, turning billions into Index funds.

The newspaper pointed out that the major Arab investors are currently selling significantly shares from Western industrialized countries and transferring money to Index funds Low cost (ETFs).

The Handelsblatt newspaper added that the Saudi State Fund’s Public Investment Fund alone sold more than $ 5.5 billion in shares of major companies during the Corona crisis, according to data from the US Securities Commission.

It added that the assets it manages are expected to grow Saudi Sovereign Wealth Fund PIF to two trillion dollars in a decade.

It is noteworthy that the Saudi sovereign wealth fund had bought last April shares in European oil companies with the aim of reducing dependence on oil, and invested in four large oil companies.

And according to the Wall Street Journal, he acquired the Saudi Sovereign Wealth Fund PIF in April held shares in four large European oil companies totaling nearly $ 1 billion.

The Wall Street Journal, citing people familiar with the matter, said that Riyadh had bought shares in Norway’s Equinor, energy giant Royal Dutch Shell, France’s Total and Italy’s Eni.

And this past May, the German magazine Focus reported that Saudi Sovereign Wealth Fund He bought shares on a large scale in light of the collapse of the stock market at that time due to the repercussions of the Corona crisis, and added that Riyadh had acquired shares in Facebook, Boeing, Disney and other German companies.

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