A giant Saudi entity with the assets of 250 billion

Saudi Arabia seeks to integrate retirement and insurance funds, with a plan to compete with the world's largest investors.

According to Arab Net, the new built-in entity will increase more than $ 250 billion, according to Chief Executive Officer of Investment Management of the General Organization for Social Insurance Company in the Kingdom, Saad al-Fadhli, who said in an interview that the insurance will be integrated with the General Corporation for retirement in a move To reduce costs and help increase investment returns, according to Bloomberg.

He said in the first general comments to determine the volume of the new sovereign entity: the integration will enhance the status of the Fund and support performance and put the General Organization for Social Insurance as one of the top 10 investors in the pension plans in the world.

He explained that the merger would give great benefit to assistance to the management of relations, costs and negotiation, so it helps in many aspects that would improve returns.

Saudi Arabia takes steps to integrate and restructure various entities, looking to enhance efficiency as part of a plan to diversify the economy away from oil. It also adopt its sovereign wealth fund to increase its spread and impact, as the government has developed a plan to develop its assets to more than $ 2025.

Miscellaneous portfolio
The integration of the General Organization for Social Insurance (GOSI) and the retirement fund (PPA), which was announced last week, will establish a fund that has no significant shares in Saudi companies, but also a global portfolio involving $ 204 million in Astrazenica and 171 million Dollars in HSBC Holdings PLC.

Local assets also include a total ownership of $ 8.7 billion in Al Ahli Bank, and $ 4.3 billion in Al Rajhi Bank, according to data collected by Bloomberg. The governor also includes real estate and bonds.

Currently, the largest public pension fund in the world, the Japanese government retirement investment fund with $ 1.7 trillion, according to Global SWF data provider. While the Largest Fund, a Joint retirement fund for New York's nodes worth $ 255 billion.