First of all, we would like to state that Prince Mohammed Bin Salman skills as financial manager leave a lot to be desired. His foreign policy and military forays have been total disasters. In Yemen, his troops can barely handle badly equipped Houthis and their foray in Syria completely backfired after Putin intervened. Against this backdrop, it would seem that his ambitious dream of creating a $ 2 trillion megafund might just be that; nothing more than a pipe dream.
So let’s what Deputy Crown Prince Mohammed bin Salman has to say on this grand plan.
“IPOing Aramco and transferring its shares to PIF will technically make investments the source of Saudi government revenue, not oil,” he said at the royal compound in Riyadh that ended at 4 a.m. on Thursday. “What is left now is to diversify investments. So within 20 years, we will be an economy or state that doesn’t depend mainly on oil.”
Mohammed bin Salman want’s to transform the economy from depending on oil revenues to one that secures most of its revenues from investments. The assumption is that they will not incur massive losses and we all know that is impossible. In fact, the plan is simply ridiculous for it could be done, the U.S would have done it long ago. After, all we can create as much money as we want. A prolonged correction and the revenue stream could evaporate in a second, leading to riots and chaos. 2 Trillion Mega fund; Saudi’s end of oil Era plan wishful thinking
Other articles of interest: