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Saudi PIF Raises $3.2 Billion In Saudi Telecom Secondary Share Offering

The PIF raised $3.2 billion from the sale of the six percent stake in Saudi Telecom. (Asharq Al-Awsat)
The PIF raised $3.2 billion from the sale of the six percent stake in Saudi Telecom. (Asharq Al-Awsat)
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Saudi PIF Raises $3.2 Billion In Saudi Telecom Secondary Share Offering

The PIF raised $3.2 billion from the sale of the six percent stake in Saudi Telecom. (Asharq Al-Awsat)
The PIF raised $3.2 billion from the sale of the six percent stake in Saudi Telecom. (Asharq Al-Awsat)

The Saudi Public Investment Fund (PIF) and the Saudi Telecom Company (STC) - the largest telecommunications company in the Middle East - announced the successful completion of the secondary public offering of 120 million shares, representing 6 percent of the company’s capital.

A joint statement said that the Kingdom’s sovereign wealth fund sold 120 million shares to local, international institutional and retail investors at 100 riyals per share.

The PIF raised $3.2 billion from the sale of the 6 percent stake in Saudi Telecom.

The $430 billion sovereign wealth fund retains a 64 percent stake in STC’s issued shares after the offering.

“The strong interest that this offering has generated from domestic and international investors is testament to STC’s enduring strengths and exciting prospects for the future,” said Yazeed Al-Humied, PIF deputy governor and head of Mena investments.

“This transaction is in line with PIF’s strategy 2021-2025... to recycle capital by selling stakes in the companies owned by PIF, as with the secondary public offering of PIF’s shares in STC and the [initial public offerings] of Acwa Power and Saudi Tadawul Group, to reinvest the proceeds in emerging and promising sectors in the local economy.”

For his part, STC group chief executive Olayan Alwetaid said: “We are extremely pleased to see the strong interest in the offering from domestic and international investors."

"The increase in the company’s free float percentage will further enhance the company’s international investment case, help make its shares accessible to a wider range of investors and improve trading liquidity,” he added.

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New Saudi System to Sustain Insurance Funds, Enhance Job Market Efficiency

Part of the job fair at the Chamber of Commerce in the Eastern Province, Saudi Arabia (Asharq Al-Awsat)
Part of the job fair at the Chamber of Commerce in the Eastern Province, Saudi Arabia (Asharq Al-Awsat)
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New Saudi System to Sustain Insurance Funds, Enhance Job Market Efficiency

Part of the job fair at the Chamber of Commerce in the Eastern Province, Saudi Arabia (Asharq Al-Awsat)
Part of the job fair at the Chamber of Commerce in the Eastern Province, Saudi Arabia (Asharq Al-Awsat)

Saudi Arabia’s Cabinet, led by Crown Prince and Prime Minister Mohammed bin Salman, approved a new social insurance system for new workers during its session on Tuesday.
This move aims to boost labor market efficiency, ensure the sustainability of insurance funds, and support local talent stability. The Kingdom is gearing up for large-scale economic projects that require ongoing updates to meet national goals.
The government aims for a sustainable and fair retirement system, improving laws and regulations.
Minister of Economy and Planning Faisal Al-Ibrahim previously highlighted Saudi Arabia’s proactive approach to managing rising workforce rates and their retirement implications.
Minister of Human Resources and Social Development Ahmed Al-Rajhi affirmed that the Cabinet’s decision enhances retirement system efficiency and provides insurance protection for participants and their families, adapting to labor market changes.
Finance Minister Mohammed Al-Jadaan stressed the decision's goal to secure insurance coverage for participants while ensuring the sustainability of insurance funds and protecting beneficiaries' rights, thereby promoting economic and social stability.
Moreover, the Cabinet has decided to maintain current provisions of the civil retirement and social insurance systems for current participants, excluding those nearing retirement age and specific groups qualifying for pensions.
The General Organization for Social Insurance clarified that the new system applies only to newly employed civilians in both public and private sectors without prior contributions to either retirement or current social insurance systems.
Existing participants will continue under current rules, except for changes related to retirement age and qualifying periods for pensions for those with less than 20 years of contributions and under 50 lunar years old at the time of the amendments.
The retirement age for covered groups will gradually increase from 58 to 65 years, starting 4 months beyond the current retirement age, based on the participant's age when the amendments take effect.
The current retirement and insurance systems will remain unchanged for participants aged 50 and above or with 20 or more years of contributions at the time of the amendments.
For new labor market entrants, the new system facilitates job mobility between public and private sectors, with contribution rates gradually increasing by 0.5% annually over 4 years, starting from the second year.