It has built up significant foreign currency reserves because of the rising price of crude oil on the international market, and although there are no official figures, analysts estimate its combined assets stand at roughly $700bn.
Until now the country’s central bank has managed the kingdom’s foreign currency reserves. But the Shura Council, Saudi Arabia’s equivalent of a parliament, will meet early this week to discuss a draft law for the National Reserve Fund, according to state media.
Transportation and healthcare are major infrastructure priorities and more than $100bn worth of rail schemes are planned or already under way in the kingdom.
Saudi Arabia is also one of Britain’s key trading partners in the Middle East and a major investor in the UK. Saudi investments in Britain are thought to exceed £62bn.
The fund will be responsible for investing state reserves to “assure the kingdom’s financial stability”, Saad Mareq, who sits on the Shura Council financial affairs committee, told Saudi daily Asharq Al-Awsat.
The fund will reportedly start with capital representing 30pc of budgetary surpluses.
The report gave no indication of whether any change in investment strategy was envisaged.
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