Saudi Arabia is planning to create a $2 trillion sovereign wealth fund to prepare for the end of the oil era, according to Bloomberg.
In an interview with Bloomberg, which reportedly lasted five hours, Saudi Arabia’s Deputy Crown Prince Mohammed Bin Salman said the fund, which would be the biggest in the world — eclipsing those of both Norway and Qatar — is designed to help the country’s economy rely less on oil.
The Saudi economy is heavily reliant on oil, and as a result has suffered massively since prices started to crash in mid-2014. Oil has fallen from more than $100 (£70) per barrel back then, to less than $40 (£27.94) now.
Saudi Arabia is running a huge deficit, around $100 billion (£70 billion), and has had to expend huge amounts of its foreign reserves in recent months. The kingdom’s foreign reserves have fallen by more than $150 billion (£104 billion).
More to come…