Saudi Arabia has launched its first sovereign-wealth fund, aimed at maximizing long-term rates of return.
The Public Investment Fund (PIF), an arm of the Saudi finance ministry, will have an initial authorized capital of approximately $5.3 billion, according to Mansour al-Maiman, secretary general of the fund in an interview with the Financial Times.
Al-Maiman said one of the objectives of launching the sovereign-wealth fund is to build the skills of the national asset managers and enhance the development of the kingdoms financial services sector.
The PIF will own 100% of the investment vehicle, but the fund will have its own independent management team, he said.
Middle Eastern policymakers say they are wary of investing in the global markets before they bottom out, but many have found bargains related to the credit crunch too good to pass up.
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