Saudi Arabia’s PIF commits $20 billion to $40 billion education, health care fund with Blackstone

Yasir Al-Rumayyan, Chief Executive and Managing Director of Saudi Arabia Public Investment Fund, Christine Lagarde, International Monetary Fund (IMF) Managing Director, and Amin Nasser, President and Chief Executive Officer of Aramco, attend the Future Investment Initiative conference in Riyadh, Saudi Arabia October 24, 2017. (REUTERS)
Updated 24 October 2017
0

Saudi Arabia’s PIF commits $20 billion to $40 billion education, health care fund with Blackstone

RIYADH: Saudi Arabia’s Public Investment Fund (PIF), the country’s main sovereign wealth fund, will contribute $20 billion to a $40 billion fund with US private equity firm Blackstone, its managing director said on Tuesday.
The fund will invest in “conventional economy” including sectors such as medical care and education, Yasir Al Rumayyan said at a major investment conference in the capital Riyadh.
PIF and US private equity firm Blackstone announced the fund in May with the execution of a memorandum of understanding for the launch of an infrastructure investment vehicle with an anchor $20 billion contribution by PIF.
As part of Saudi Arabia’s economic reforms announced last year, the Saudi government plans to expand PIF, founded in 1971, to finance development projects in the country.
PIF expects to create over 20,000 jobs by 2020 through its projects, Al Rumayyan also said on Tuesday.
“With our short term plans, we will have more than 20,000 jobs in 2020 and beyond it’s going to be a lot more.”
The Public Investment Fund has a portfolio made up of listed holdings, but also unlisted equity investments, international investments, real estate, loans, bonds and sukuk.


Oil prices up almost 3 pct as OPEC agrees to raise output

Updated 22 June 2018
0

Oil prices up almost 3 pct as OPEC agrees to raise output

  • Oil prices rose almost 3 percent on Friday as OPEC agreed a modest increase in output to compensate for losses in production at a time of rising global demand.
  • The Organization of the Petroleum Exporting Countries agreed on Friday to boost output from July.

LONDON: Oil prices rose almost 3 percent on Friday as OPEC agreed a modest increase in output to compensate for losses in production at a time of rising global demand.
Benchmark Brent crude jumped $2.19 a barrel, or almost 3 percent, to a high of $75.24 before slipping to around $75 by 1305 GMT. US light crude was $1.80 higher at $67.34.
The Organization of the Petroleum Exporting Countries, meeting in Vienna, agreed on Friday to boost output from July after Saudi Arabia persuaded Iran to cooperate in efforts to reduce the crude price and avoid a supply shortage.
Two OPEC sources told Reuters the group agreed that OPEC and its allies led by Russia should increase production by about 1 million barrels per day (bpd), or 1 percent of global supply.
But the real increase will be smaller because several countries that recently underproduced oil will struggle to return to full quotas while other producers will not be allowed to fill the gap.
The deal looked to be in line with many analysts' forecasts.
Analysts had expected OPEC to announce a real increase in production of 500,000 to 600,000 barrels per day (bpd), which would help ease tightness in the oil market without creating a glut.
"The effective increase in output can easily be absorbed by the market," Harry Tchilinguirian, head of oil strategy at French bank BNP Paribas told Reuters Global Oil Forum.
Oil prices have been on a roller-coaster ride over the last few years, with the international marker, Brent, trading above $100 a barrel for several years until 2014, dropping to almost $26 in 2016 and then recovering to over $80 last month.
The most recent price rally followed an OPEC decision to restrict supply in an effort to drain global inventories.
The group started withholding supply in 2017 and this year, amid strong demand, the market tightened significantly, triggering calls by consumers for higher supply.
Falling production in Venezuela and Libya, as well as the risk of lower output from Iran as a result of US sanctions, have all increased market worries of a supply shortage.
Another big uncertainty for oil is the escalating dispute between the United States and its trading partners, which could hit US crude oil exports to China.
Asian shares hit a six-month low on Friday as tariffs and the US-China trade battle start taking their toll.
If a 25 percent duty on US crude imports is implemented by Beijing, American oil would become uncompetitive in China, forcing it to seek buyers elsewhere.
Chinese buyers are already starting to scale back orders, with a drop in supplies expected from September.