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While African oil states have not accumulated reserves during happy days, Saudi Arabia, through its sovereign fund, the Public Investment Fund (PIF), is taking advantage of the current crisis to place its excess liquidity in promoter assets that have seen their values melt on Wall Street under the effect of the coronavirus pandemic.
Thus, the Saudi sovereign wealth fund invested, during April, $ 713.7 million in Boeing, $ 522 million in Citigroup, $ 522 million in Facebook, $ 495.8 million in Disney and $ 487.7 million in Bank Of America. The Saudi fund also invested $ 827.6 million in BP, the British major holding certificates of deposit (ADR) domiciled in the United States.
This fresh money comes at the right time for the American assets asphyxiated by the crisis. As for the Saudi fund, it is guaranteed to reap a capital gain of at least 30% on this portfolio as of the beginnings of the recovery and the end of the epidemic because of the strong discount suffered by these assets. A winning game in short for PIF which counts in its diversified but pro-American portfolio of Tesla and Uber stocks and soon stocks of Hollywood companies (film, leisure and music) which will be acquired in the name of the opportunity in agreement certainly with the learned prescriptions of halal finance prohibiting investment in alcohol and games of chance.
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