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Many Saudi money investments over the years have gone to ridiculous non-returning projects. As much publicity as they've been getting, I suspect the Soft bank g
by dv_dt 7y ago
Many Saudi money investments over the years have gone to ridiculous non-returning projects. As much publicity as they've been getting, I suspect the Soft bank guided investment have actually moved the bar upward on the quality of Saudi project investments.
The Saudis have this huge problem of trying to turn all the oil wealth into something, anything more permanent to diversify their economy before the oil runs dry or climate regulations cutoff the money flow. Earlier work more independently seems to not to have come to much so. Soft Bank and maybe even to some degree the ARAMCO IPO are possible ways to try to tie into global capability to try to up their conversion success.
- dmurray 7y agoVery much the Aramco IPO. Selling off a stake in that to buy non-correlated assets is a big step towards diversification.
- nradov 7y agoThe Aramco IPO while huge only raised about $1200 per Saudi Arabian citizen. That's not going to keep them going very long.
- dmurray 7y agoI guess it's more correct to say the (partial) sale of Aramco is a major part of their diversification efforts, and the IPO is the first step in that. They wanted to sell more, and surely will if the price is right.
- skybrian 7y agoI'm wondering why Saudi Arabia doesn't just buy the S&P 500 like any index fund. It doesn't seem that hard to diversify? Is it not possible at their scale? Norway has a trillion dollar sovereign investment fund and they seem to be profitable and uncontroversial?
- wmil 7y agoThat doesn't generate any consulting fees for their friends.
- Cyph0n 7y ago> Norway has a trillion dollar sovereign investment fund and they seem to be profitable and uncontroversial? You're comparing apples to oranges. One is a sovereign wealth fund managed by citizens, for citizens. The other is a wealth fund managed by royalty, for royalty, with the main goal being to keep said royalty in power.
- smabie 7y agoAre you implying that royalty likes to lose money? Morever, thr Sauds run a massive welfare state, so it’s a little unfair to claim that Norway’s and Saudi Arabia’s funds are so different.
- Cyph0n 7y agoNot at all. Firstly, the royal family could care less about the welfare of the average Saudi citizen. Secondly, the royal family has full control over the fund (with zero accountability). Given these two facts, there is much less harm if they play hard and fast with the fund. Besides, most of the royal family already has their welfare guaranteed for life in the form of personal investments and the monthly salary.