Take the Saudi’s Advice: “Diversify or Die”

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You may think that this name, Mohammad bin Salman Al Saud sounds too strange to be an average citizen, living the usual and common life in the United States of America. It may not be for long.

What could this 30-year old Deputy Crown Prince, Second Deputy Prime Minister, chief of the royal court, and the youngest Defense Minister in the world, son of King Salman of Saudi Arabia, have in common with us?

Some of you are probably watching very nervously the volatile landscape that is constantly shifting around the world. We, who are no risky traders, but long-term investors of our 401K’s and our savings in the stock market, must be very intrigued with the new era of emerging technologies and developments, especially in the energy field.

Earlier this year, Mohammad bin Salman Al Saud, the chair of the Saudi Council for Economic and Development Affairs, announced the establishment of the Public Investment Fund (PIF), which will receive a windfall of at least $2 trillion from the Initial Placement Offer (IPO) of Saudi Aramco, the giant Saudi state oil company. This planned IPO will take only 5% of the company assets. This news set off a fury of market interest.

Initially scheduled for 2018, the IPO might actually go ahead a year earlier. In the process, equity exchanges worldwide will be transformed. And here comes the dark horse.

“Mohammad’s PIF will come out of the gate as the largest investment fund in the world, even if no more of Saudi Aramco stock is offered and no collateralization of oil reserves is pursued. Once PIF receives the money from the Aramco IPO, it will be transformed into a massive investment engine that will target a full range of international investments, much of those in equity … Saudi Arabia will leverage the value of its oil to diversify in a way quite different from its neighbors – it will create the largest stock investment portfolio the world has ever seen.  Without diversifying what it produces, it will nonetheless acquire a quite diversified holding in dominant and emerging companies across the world. Saudi oil will provide the base for Saudi control of boardrooms worldwide, both within and without the energy sector. 

Nothing like this has ever been attempted before. Rockefeller, Noble, Rothschild, to say nothing of Gates, Buffet, and Soros all pale in comparison. 

If the Deputy Crown Prince pulls off the Aramco IPO, the Saudi PIF is going to transform investment markets as we know them, overshadowing any hedge, mutual, or holding fund in existence. Indeed, all of those will immediately become potential Saudi acquisition targets.”

If the above extract from Dr. Kent Moors article has piqued your attention, HERE you can find “The rest of the story,” as the unforgettable Paul Harvey used to say.

Ad notam:

Kent Moors has been an advisor to the highest levels of the US and foreign governments, a consultant to private companies, financial institutions and law firms in 21 countries. Dr. Moors served as the President of ASIDA, Inc. Dr. Moors has been a Member of the Advisory Board at Ecosphere Technologies, Inc. since August 23, 2007. He has appeared over 800 times as a featured television and radio commentator. Dr. Moors is an internationally recognized expert in global risk management, oil/natural gas policy and finance, cross-border capital flows, emerging market economic and fiscal development, political, financial and market risk assessment, as well as new techniques in energy risk management.

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The opinions expressed in this commentary are solely those of the author and are not not necessarily either shared or endorsed by iPatriot.com.

Leon Lunsky

Retired marketing professional consulting on effective Business Development, Sales & Marketing and Customer Relationship Management. Extensive 30-year engineering and entrepreneurial experience in Latvia and Russia, and over 20 years of broad engineering and marketing involvement with an international engineering corporation in USA.

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