Is the prince, who was the international front for Saudi investment, unable to lead the scene alone? Over the years, Prince Alwaleed bin Talal managed to raise hundreds of millions of dollars by investing in several companies, including Citigroup, Uber and Twitter, with almost complete independence.
However, informed sources said that the Saudi Public Investment Fund now owns a minority stake in the Kingdom Holding Company owned by Prince Alwaleed, and it is unlikely that the sovereign fund will be satisfied with remaining on the sidelines.Two sources familiar with the conditions of the Saudi business sector told Reuters that the sovereign wealth fund, which is the cornerstone of Crown Prince Mohammed bin Salman's plan to diversify the Saudi economy, wants the investment committee of Kingdom Holding Company to have more influence in decision-making than it was in the past.
An investor in a sovereign fund in the Gulf said, "The Public Investment Fund wants to be an active investor."
When contacted by Reuters, the Public Investment Fund, Kingdom Holding, Prince Alwaleed and its spokesman declined to comment on what the fund's holding of a minority stake in Kingdom Holding means for future investments.
An investor in a sovereign fund in the Gulf said, "The Public Investment Fund wants to be an active investor."
When contacted by Reuters, the Public Investment Fund, Kingdom Holding, Prince Alwaleed and its spokesman declined to comment on what the fund's holding of a minority stake in Kingdom Holding means for future investments.
Al-Waleed, 67, for a long time maintained a tight grip on the shares of the Kingdom Company, as he owned all of its shares, except for a five percent stake that it put on the Saudi stock exchange until the Public Investment Fund bought a 16.87 percent stake for $1.5 billion last month.
The deal came more than four years after the name of Al-Waleed was included in a list targeted by an anti-corruption campaign ordered by the Crown Prince. Al-Waleed was held for three months at the Ritz-Carlton, Riyadh, along with dozens of members of the ruling family, senior officials and businessmen.
The authorities released most of the detainees after reaching financial settlements, and Al-Waleed said in March 2018 that he had made a secret agreement with the government.
It was not clear whether the sovereign wealth fund's deal to buy a stake in his company was linked to this settlement. A spokesman for Prince Al-Waleed, the grandson of King Abdulaziz Al Saud, the first king of Saudi Arabia, and Riad Al Solh, the first prime minister of Lebanon, said the settlement was just a business deal.
The Sovereign Fund deal was concluded at the lowest price per share during that year and without any price premium on the share. The bankers who usually handle the fund's or Prince Alwaleed's transactions had no role in this deal, according to two informed sources.