Monday 2 March 2020

Ousted #Saudi Oil Boss Khalid al Falih Can Make Mark Investing - Bloomberg

Ousted Saudi Oil Boss Khalid al Falih Can Make Mark Investing - Bloomberg:

After a week of drama in global financial markets, it’s worth pointing out an intriguing development in Saudi Arabia that warrants watching. 

In a surprise move on Tuesday, the kingdom’s ruler King Salman announced the return to government of former oil minister Khalid Al-Falih, who will become head of a newly established ministry of investment. Just six months ago, Al-Falih was unceremoniously dismissed, his removal seen as a “fall from grace” – specifically the good graces of Crown Prince Mohammed bin Salman, who was reportedly displeased with Al-Falih’s slow and cautious approach to the Vision 2030 Saudi economic reform plan and the related IPO of state-owned oil company Saudi Aramco. Now, Al-Falih has been placed in charge of a ministry with an undefined mission and unclear responsibilities – but also much potential for helping Saudi Arabia become the welcoming partner for foreign businesses that it says it wants to be.

The choice of Al-Falih – who was at various times also the CEO of Aramco, the Minister of Health, a top adviser to the crown prince and a board member of the Saudi sovereign wealth fund – indicates that King Salman is hoping the new Ministry of Investment will be more than just a rubber stamp for the existing investment authorities. With extensive experience in the upper echelons of Saudi government and business, Al-Falih has the skills, knowledge and connections to mold it into something more powerful. 

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