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Thursday, 26 October 2017

Saudi eyes private stake sale in Aramco

Saudi eyes private stake sale in Aramco:

"Saudi Arabia’s finance minister has confirmed the kingdom is exploring a private stake sale in state energy giant Saudi Aramco, with plans for an international listing just one option for a privatisation billed as the largest initial public offering in history.

Mohammed Al-Jadaan said in an interview with the Financial Times on Thursday that while plans for listing Aramco internationally were still being debated at the highest levels of the kingdom, the only confirmed component was an offering on the domestic Tadawul exchange. Private stake sales to strategic investors are also being considered.

The kingdom is aiming to finalise plans for the IPO’s full structure by the end of this year, Mr Al-Jadaan said. Bankers, lawyers and consultants are waiting for news on the offering that is expected to generate record fees, with the kingdom valuing the total company at more than $2tn."



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Saudi Arabia’s ‘Vision 2030’ is looking a lot less clear

Saudi Arabia’s ‘Vision 2030’ is looking a lot less clear:

"Saudi Arabia’s move into recession comes at an unfortunate time for its new crown prince, Mohammed bin Salman (known to all as MbS). Unemployment is continuing to rise, threatening the social contract. In foreign affairs, the war in Yemen and the dispute with Qatar appear to be in stalemate. And then there is the vexed issue of King Salman’s ill health, and the question of who succeeds him. This was probably not the situation that the Deputy Crown Prince envisaged 18 months ago when he launched his ambitious “Vision 2030” programme and set out his hopes for a Saudi Arabia that was no longer dependent on oil revenues. “Within 20 years, we will be an economy that doesn’t depend mainly on oil . . . We don’t care about oil prices — $30 or $70, they are all the same to us. This battle is not my battle.”"



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Saudi minister raises doubt over international Aramco listing

Saudi minister raises doubt over international Aramco listing:

"Saudi Arabia’s finance minister has confirmed the kingdom is exploring a private stake sale in state energy giant Saudi Aramco, with plans for an international listing just one option for a privatisation billed as the largest initial public offering in history.

Mohammed Al-Jadaan said in an interview with the Financial Times on Thursday that while plans for listing Aramco internationally were still being debated at the highest levels of the kingdom, the only confirmed component was an offering on the domestic Tadawul exchange. Private stake sales to strategic investors are also being considered.

The kingdom is aiming to finalise plans for the IPO’s full structure by the end of this year, Mr Al-Jadaan said. Bankers, lawyers and consultants waiting for news on the offering that is expected to generate record fees, with the kingdom valuing the total company at more than $2tn.

"



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Saudi Arabia's Floating City Brings on a Sinking Feeling - Bloomberg Gadfly

Saudi Arabia's Floating City Brings on a Sinking Feeling - Bloomberg Gadfly:

"Prince Mohammad bin Salman of Saudi Arabia displays an Elon Musk-like affinity for ludicrous challenges and grandiose promises. With his latest announcement, though, he's edging into Peter Thiel territory: floating cities.The prince wasn't talking about seasteading on Thursday. Instead, he said that NEOM, the futuristic megalopolis he plans to build in northwestern Saudi Arabia, unveiled earlier this week, will sell shares in itself at some point. "It’s as if you float the city of New York,” he said in an interview with Reuters.Living, as we are, in this brave new world with things like initial coin offerings, why not raise the idea of an initial city offering?"



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Saudi investment ambitions impress but foreign money may be slow to come

Saudi investment ambitions impress but foreign money may be slow to come:

"Saudi Arabia impressed bankers and fund managers from around the world this week with the size of its economic ambitions but it may not have convinced foreign businessmen to pour in the billions of dollars needed to transform the kingdom. 

At a lavish, three-day investment conference attended by over 3,500 people from 88 countries, Crown Prince Mohammed bin Salman announced plans for a $500 billion business zone reaching into Jordan and Egypt. Riyadh’s main sovereign wealth fund said it would nearly double its assets to $400 billion by 2020.

The event, part of the kingdom’s drive to free itself of reliance on oil exports in an era of cheap oil, attracted senior executives of global banks such as Citigroup, Goldman Sachs, Bank of China and Mizuho.

"



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MIDEAST STOCKS-Gulf markets flat on steady oil, banks weigh on Abu Dhabi

MIDEAST STOCKS-Gulf markets flat on steady oil, banks weigh on Abu Dhabi:

"Stock markets in the Middle East were largely flat on Thursday on the back of steady oil prices, but exchanges in Dubai and Abu Dhabi shed some value, dragged down by some companies missing investors’ expectations.

Oil prices steadied, supported at near multi-month highs by tighter crude markets, but slightly pressured by an unexpected increase in U.S. production, exports and crude inventories.

Brent crude was changing hands at $58.34 a barrel at 1221 GMT, backed by comments from Saudi Arabia’s energy minister earlier this week which confirmed that the country - the world’s top crude exporter - is determined to end a global supply glut that has impacted oil prices over the past three years."



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Exclusive: Saudi Aramco IPO on track for 2018 - Saudi crown prince

Exclusive: Saudi Aramco IPO on track for 2018 - Saudi crown prince:

"Saudi Aramco’s initial public offering is on track for next year and the national oil giant could be valued at more than $2 trillion, Saudi Arabia’s Crown Prince Mohammad bin Salman told Reuters in an interview.

The sale of around 5 percent of Aramco next year is a centerpiece of Vision 2030, an ambitious reform plan to diversify the Saudi economy beyond oil which is championed by Prince Mohammad.

Saudi officials have said domestic and international exchanges such as New York, London, Tokyo and Hong Kong have been looked at for a partial listing of the state-run firm. "



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Saudi Arabia to Open Fledgling Small-Cap Market to Foreigners - Bloomberg

Saudi Arabia to Open Fledgling Small-Cap Market to Foreigners - Bloomberg:

"Saudi Arabia will allow foreigners to trade shares directly in its market for smaller companies as the kingdom gradually opens its market amid a wider drive to diversify its economy.

The platform, known as Nomu, will be open to foreigners starting January, Capital Market Authority Chairman Mohammed Elkuwaiz said during an event in Riyadh on Thursday. Qualification requirements for foreign investors that apply to the main stock market will be waived for those trading in Nomu, he said."



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MIDEAST STOCKS-Shares in First Abu Dhabi Bank, Emaar Properties slip

MIDEAST STOCKS-Shares in First Abu Dhabi Bank, Emaar Properties slip:

"Shares in First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates, dipped 1.9 percent on Thursday, the day after it reported an 18 percent drop in third-quarter profit.

Financial sector stocks helped drag the Abu Dhabi index down 0.6 percent in early trading.

Elsewhere on the exchange, shares in Etisalat, the United Arab Emirates-based telecom group, edged up 0.05 percent following its reporting on Wednesday of a 29 percent increase in third-quarter net profit."



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