Crown Prince Mohammed bin Salman is banking on Saudi Arabia’s largest listed companies, including Saudi Aramco, to invest $1.3tn in the kingdom over the next decade and urging them to reduce dividends as he tries to accelerate plans to diversify the oil-dependent economy.
Prince Mohammed said more than 20 companies had agreed to be involved in his new initiative, with 60 per cent of the investment led by state oil giant Aramco, which listed on the local stock market in 2019, and Sabic, a petrochemicals company.
“That will not harm the shareholders of those companies because instead of getting dividends in cash, you’re going to get growth in the stock market,” Prince Mohammed told reporters late on Tuesday.
“What we’re trying to create is growth in Saudi Arabia: growth in GDP, more jobs in Saudi Arabia, more income to the Saudi government and a better life for Saudis,” he added.
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