Solidifying Public Investment Fund’s (PIF) strong financial position and credit rating, Crown Prince Mohammed Bin Salman announced the transfer of a 4% stake in oil major Saudi Aramco to Sanabil Investments, which is wholly owned by the sovereign wealth fund responsible for the bulk of projects aimed at transforming the Saudi economy to reduce its reliance on oil revenue.

Based on Saudi Aramco’s current market price, the 4% stake would be worth roughly $77 billion. The state is Aramco’s biggest shareholder, owning 90.18% of the company.

The move will not affect the company’s operations, strategy, dividend distribution policy, or governance framework, the company further said. 

The action is part of the fund’s ongoing efforts to fulfill its mandate to start new industries, form new strategic alliances, localize knowledge and technology, and increase the number of direct and indirect job possibilities in the local economy; the Saudi Press Agency quoted Prince Mohammed, who is also the chairman of PIF.

In 2019, Saudi Aramco completed the initial public offering, raised about $25 billion, and later sold more shares, boosting the total to $29.4 billion.

Last year, driven by higher oil prices, its annual net profit surged 46% to a record $161.1 billion.