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Thursday, 15 December 2016

The privatisation of Saudi Aramco

The privatisation of Saudi Aramco:
"The planned sale of up to 5 per cent of Saudi Arabia’s state oil producer could create not only the world’s largest publicly traded energy company but the biggest initial public offering of all time. More than this, however, the move also offers the rest of the world access to one of the kingdom’s prized industries — and could pave the way for greater internationalisation of the Saudi economy.

Saudi Aramco’s IPO is part of a transformation plan, envisaged by the powerbroker deputy crown prince, Mohammed bin Salman, which seeks broad-based privatisation to boost employment and diversify the kingdom away from oil. But there is scepticism about whether the country is capable of such an overhaul when its people have grown accustomed to the state providing cradle-to-grave services.

Even partially untangling entities such as Saudi Aramco from the state will be difficult: in addition to exploiting the kingdom’s hydrocarbon riches, the company — which employs 65,000 people — constructs schools, hospitals and sport stadiums."

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