Crown Prince says agreement with 24 firms within ‘Shareek’ to convert profits into capital spending

Crown Prince Mohammed bin Salman

Saudi Crown Prince Mohammed bin Salman said in a televised interview on April 27, 2021, that an agreement was reached with 24 companies within the ‘Shareek’ program to fully or partially commit to not distributing cash dividends and converting them into capital spending.

The Crown Prince stated that more than 30 companies within the program are part of the negotiations in order to develop policies with them.

Shareholders will benefit from the company’s growth instead of obtaining 3%, 5% or 6% in cash, as they will gain from the increase in company size. Furthermore, shareholders will be able to sell it and realize the yield that was achieved every year or keep it in the company.

The Crown Prince pointed out that the National Development Fund (NDF), Real Estate Development Fund (REDF), Tourism Development Fund (TDF), and others will pump annual amounts of around SAR 1 trillion, more or less according to the annual budget.

The proposed SAR 10 trillion have always existed, he stated.

The Public Investment Fund (PIF) will pump SAR 3 trillion and SAR 5 trillion will be injected by the 24 Saudi companies, which is expected to increase in the future, the Crown Prince said, indicating that all the cash will create vast opportunities for the private sector.