Saudi Arabia plans world's largest sovereign wealth fund worth $900 billion: report news
24 December 2007

Mumbai: Saudi Arabia is planning to raise a $900 billion sovereign wealth fund that could exceed a similar fund owned by neighbouring Abu Dhabi, to become the largest in the world, a Financial Times report quoting unnamed sources said.

The new fund, to be set up by Saudi Arabia's Public Investment Fund, will be a formidable rival to other government-owned funds like Temasek of Singapore.

Currently, Abu Dhabi Investment Authority is considered the world's largest fund, with about $875 in investible resources.

The Saudi Public Investment Fund is the only fund allowed to invest within Saudi Arabia.

Most of the Middle Eastern and Asian countries that invested in the West, however, had been hit hard by the US housing slump and global credit crunch.

Even so, government-owned funds in Abu Dhabi, Singapore, Qatar, etc, are playing an increasingly active role in channeling capital to western companies, particularly financial companies which have been hit hard by the US mortgage meltdown, the FT report said.

High oil prices have boosted export earnings of the oil-producing countries. These countries have accumulated massive foreign exchange reserves.

Multibillion investments in US companies by Middle East-based sovereign wealth funds in the recent past have helped shore up investor confidence, which has been shaken by the spread of asset write-downs.


 search domain-b
  go
 
Saudi Arabia plans world's largest sovereign wealth fund worth $900 billion: report