The kingdom of Saudi Arabia will combine two state-run pension and unemployment insurance funds into an entity with almost $29bn, Bloomberg reports.
The kingdom’s cabinet has reportedly approved the merger of the Public Pension Agency and the General Organization of Social Insurance, also known as GOSI.
It’ll boost investment returns, reduce costs and help with their diversification, Finance Minister and GOSI Chairman Mohammed Al Jadaan reportedly said in a statement.
Public Pension Agency and GOSI, Bloomberg notes, hold stakes in Saudi Arabian firms, including a combined $8.5bn holding in Saudi National Bank and a $4.3bn stake in Al Rajhi Bank.
Their investment portfolio also includes shares worth $207m in AstraZeneca and $170m in HSBC Holdings.
The Gulf country has gone on a shopping spree of several local and foreign funds focused on sector including real estate, industry, and agriculture together under the National Development Fund to reduce overlap, cost and diversify its economy dominated by the oil industry.
Saudi Arabia merges three funds to form $29bn holding
