Saad bin Abdulmohsen Al-Fadhli, CEO of Hassana Investment Company, the investment arm of the General Organization for Social Insurance, said that the investment return achieved by the Saudi Public Pension Agency and the General Organization for Social Insurance exceeded 8% during the past three years.
Last week, the Saudi Cabinet approved merging the General Pension Agency into the General Organization for Social Insurance.
The merger will result in the creation of one of the largest investment portfolios in the Saudi market, with a market value of 93 billion riyals.
Among the most prominent components of this portfolio is a stake of 13% of the Saudi National Bank, 30% of the Saudi Investment Bank, and about 36% of Tawuniya for Insurance.
In his interview with Al-Arabiya, Al-Fadhli added that the two institutions, during the past years, established two investment management companies, namely the Pioneer Investment Company affiliated to the Public Pension Agency, and the immunity investment company affiliated to the General Organization for Social Insurance.
He explained that the two institutions invest in the local and international markets, and include shares, bonds and private equity.
He pointed out that during the coming period, the structuring of the investment arms will be evaluated to take advantage of both and their ability to achieve the goals for the benefit of the new institution, explaining that a transformation team has been formed, “and we are working with the office to evaluate options and restructure the branches.”
He stated that it is normal for the investment strategy to be reviewed to ensure its suitability to the new institution after the merger and to ensure its readiness to achieve the objectives, but at the same time he did not expect a fundamental change in the investment strategy.
He pointed out that the local market is a promising market, “We believe we have a comparative advantage as a local investor, and also because of the great opportunities that we expect to arise from the Kingdom’s vision programs.”