Saudi's first sovereign wealth fund nears approval

DEBUT FUND: Saudi Arabia is on the verge of launching its first SWF, Al-Maiman said. (Getty Images)

Saudi Arabia is about to approve the launch of its first sovereign wealth fund with initial capital of 20 billion riyals ($5.3 billion), the UK's Financial Times reported on Tuesday.

The fund, which will be set up by the state-controlled Public Investment Fund (PIF), will act as "a portfolio investor focusing on maximising long-term rates of return", the newspaper said, quoting the PIF's secretary general, Mansour Al-Maiman.

Al-Maiman, who said Riyadh is in the final stages of approval, said the new fund could raise its capital or increase the size of assets under management as needed.

Al-Maiman could not immediately be reached for comment.

PIF is attached to the Finance Ministry and invests exclusively in local assets.

Mohammed Al-Jasser, vice governor of Saudi Arabia's central bank, told newswire Reuters in January that Saudi Arabia is considering setting up a $6 billion sovereign wealth fund to invest the country's surplus oil wealth, but could "live without it" if debate about suspected abuses by similar foreign investment vehicles continues. (Reuters)

RELATED: Saudi wealth fund to focus on domestic investment

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