Saudi Arabia’s Crown Prince Mohammed Bin Salman transferred $80 billion worth of Saudi Aramco shares to the Kingdom’s sovereign wealth fund.

Crown prince stated that the shares would strengthen the Public Investment Fund (PIF’s) financial position and credit ratings over the medium-term. It is the vehicle that the prince chooses to help transform Saudi’s economy and diversify away oil revenues.

Saudi Aramco remains the biggest shareholder after the transfer, with more than 94% remaining shares.

Transferring existing shares will help PIF increase its assets under management. These are expected to reach around 4 trillion Rials ($1.07 Trillion) by 2025.

Monica Malik (chief economist, Abu Dhabi Commercial Bank) stated that the PIF raises funds globally and supports future Aramco shares sales.

Saudi Aramco stated in a statement that the transfer was private between the state fund and government. The company said it was not part of the transaction and that they did not receive or enter into agreements.

According to the statement, the decision would have no impact on the number of shares issued or the company’s strategy, operations, strategies, dividends distribution policies, or governance structure.

The transfered shares would be equal to ordinary shares.

Saudi officials have previously mentioned the possibility that Aramco shares could be sold. PIF didn’t comment.

Yasir Al-Rumayyan (head of sovereign wealth fund), stated last year that Saudi Aramco might consider selling additional shares in the event of favorable market conditions. The Wall Street Journal reported recently that Saudi Aramco could also be looking to sell stakes worth up to $50 billion.

According to Yousef Husseini (associate director at EFG Hermes), “The PIF in Saudi Arabia is the main vehicle for executing its 2030 vision. This suggests that the share transfer could lead to further share sales later down the line to raise funds to allow the PIF to go elsewhere.”

Aramco was the world’s largest oil company and completed the largest international initial public offer in late 2019 raising $29.4B. The proceeds were then transferred to PIF.

Aramco shares have risen by just over 4 percent this year. The company is valued at $1.99 trillion. This puts it behind the most highly-valued company in the world. Apple Microsoft. At Sunday’s close, the shares fell 0.7% to 37.05riyals

In the wake of a dramatic drop in oil prices during the initial days of the pandemic the demand is close to pre-Covid levels. Brent crude now trades at $94 per barrel, amid worries about tighter global supply.