19.02.2015 - Saudi Arabia’s oil pain could become local SMSFs’ gain
The drive to have self-managed funds and local communities become major funders of future infrastructure projects is gathering momentum. At the same time, there is a real chance that low oil prices will change the global infrastructure game. David Murray, the chairman of the Financial System Inquiry, along with many others, is watching closely developments in Saudi Arabia where the sovereign wealth fund has been a major investor in global infrastructure projects. The Saudis continue to make big profits from the current oil price because of their low extraction costs but they have set up a society that requires a $US75 a barrel price to fund the country. That means that very soon the Saudi’s sovereign wealth fund will need to sell assets to cover the shortfall. At the same time, they will slash their support for new projects...............................................Full Article: Source