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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    "The Wall Street Journal": Saudi Arabia sinking into failed investments (expanded)

    Rocky
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    "The Wall Street Journal": Saudi Arabia sinking into failed investments (expanded) Empty "The Wall Street Journal": Saudi Arabia sinking into failed investments (expanded)

    Post by Rocky Wed 25 Oct 2017, 9:05 am

    "The Wall Street Journal": Saudi Arabia sinking into failed investments (expanded)


    "The Wall Street Journal": Saudi Arabia sinking into failed investments (expanded) 5-King-Salman-6-660x330





    The Wall Street Journal published a report by Justin Schick and Maureen Farrell, saying that the Saudi government-owned Public Investment Fund is expected to become one of the world's largest investors.
    The report, seen by the Journal News, says the fund is starting to falter. After suffering for its value, a struggle over disappointing investment, including an investment in Ober Technologies, has upset the fund.
    A number of investment stars, including executives from Black Rock, Blackstone Group, Goldman Sachs and JPMorgan Chase & Co., will travel this week to a palace in Riyadh for a conference with The Public Investment Fund, during which they will discuss the Fund's strategy among others. The meeting will be called "Devos in the Desert".
    The fund hopes to separate its pivotal role in efforts to break the dependence on oil. The fund, which has invested heavily, has identified only $ 50 billion for technology and is currently preparing to make new investments that could grow significantly, Aramco's planned shares, realizing that the fund is facing a mess behind the scenes.
    The report said that after investing $ 3.5 billion last year in Ober, the taxi company, the company's manager resigned on charges of misconduct, and the investment helped Ober to compete with a local company in the same field. The fund's investment has been successful.
    The authors note that sooner the President of the Fund was opposed to parts of a deal with the company's largest partner, Softbank Group Corporation, which would reduce Ober's value, meaning the fund's loss, pointing out that the fund's spokesman did not respond to questions about the investment .
    According to the paper, the fund's move to finance start-ups is a major shift for a fund that has only held contracts supporting local businesses, including banks and fish farms that are suffering losses. This is a change in 2015 after King Salman commissioned his son, Prince Mohammed bin Salman, Was in his thirties at the time, to wean the country from oil, and led the strategic prince to sell shares in the Saudi oil company to finance investment in non-oil sectors.
    The report finds that "this is a non-traditional policy. Most sovereign funds have experience in conventional equities and bonds before entering the world of start-ups, which carries greater risk, and even big venture capitalists are not as successful as they fail in this area."
    The authors say the transformation of Saudi Arabia's economy from an oil economy to an inexperienced advanced technology economy is equivalent to a bet that Saudi money managers can get revenues out of the world's best productive oil fields. "If your timing is wrong, Will leave a lot of value on the table. "
    The newspaper notes that Prince Mohammed began investing after unveiling his plan in 2015 before hiring international investors before the investment fund determined the value of his property, noting that the weakness of the accounting records made it difficult for Saudi officials and foreign consultants to calculate the value of the investment fund, IFAD and a person briefed on audit efforts.
    The report quoted a senior IMF official as saying that its value was "more than $ 200 billion, less than $ 300 billion", and that one minister valued "between $ 180 billion and $ 200 billion." A well-informed person said the fund had reached a value "Almost certain," but refused to give a number.
    The authors say that some balances lack Western management standards, according to a person who has been briefed on Ernst & Young's audit of the fund. "Although the fund has audited statements, the figures are not necessarily true, .
    The source said that the source of the challenge lies in the rapid growth of the fund, realizing that others believe that the reason for the Crown Prince Mohammed's seizure of the central decision of the Fund, pointing out that a spokesman for the Royal Court refused to respond to a query on the role played by the Prince Mohammed in the box.
    According to the report, the fund committed in 2015 to invest $ 1 billion in the construction of the Saudi National Automobile Company, but the plant was not built, and the company did not start production, noting that the Fund committed $ 500 million last year to the electronic commerce start (Noon.com), which Operates from Dubai, which has promised to offer 20 million products by January.
    The newspaper says that by May, the company did not start trading, after expelling most of its employees, including the general manager, according to the company's insiders, and the company began work recently, but delayed provided an opportunity for the company, "Amazon" to enter the Gulf market Strongly.
    According to the report, Prince Mohammed met last year with UBS managing director Travis Calanc, whom he called "friend" and led another big deal for the fund. The talks were originally about the fund's investment of $ 1.5 billion in Ober, , But Prince Mohammed wanted control and information, he demanded a seat in the board of directors for $ 3.5 billion, and agreed to "Ober" to grant a seat in the board of its director of investment fund Yasser Ramian, according to insiders.
    The authors reveal that pressure has been exerted on Kalank because of Ober's violation of local laws and staff's claim that he has adopted a culture that allows men to harass women, pointing out that Ramyan pressed to keep the manager informed, but investors forced him to resign.
    The Wall Street Journal concluded by saying that the Ober deal worked against the most successful domestic technology companies supported by the investment fund before Prince Mohammed's deal with Ober, where Karim Taxi started operating in Saudi Arabia in 2013 and was on its way To generate more than 50 times the value of the company's core investment for the investment arm of STC, most of which the fund owns.

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