The Saudi Arabian authorities consider the possibility to create the Fund to transfer one third of the budget proficit formed by growth of oil prices, reported Commersant quoting Asharq Al-Awsat newspaper.
During 2013 the earnings of the budget exceeded expenses by $55 billion and from 2011 to 2013 the proficit was estimated at $232 billion.
The Consultative Council under the King will discuss the Fund this week and its official goal will be ensure financial stability of the country. Right now majority incomes from oil export are spent to increase international resources of the country and investment projects. Over $730 billion, mainly low-risk investments into the US state-papers, is managed by the Saudi Arabia Monetary Agency.
The Norwegian State Pension Fund is the biggest one. It was established in 1990 to prevent the so-called Dutch disease. The Fund’s assets are estimated at $878 billion and among its main investments are European papers and the companies’ shares.
The State Investment Fund of Abu Dhabi is the biggest one among the countries of the Persian Gulf and according to the Sovereign Wealth Fund Institute, its assets total $773 billion. In addition to the stock-exchange operations, the Fund also invests capital into immovable property and buys shares in the foreign companies. The Russian National Welfare Fund and the Reserve Fund occupy the 14th and 15th places in the world rating of assets and according to the latest’ estimate of the Finance Ministry, the Welfare Fund has $87.3 billion and the Reserve Fund – $87.1 billion.
