Aramco IPO proceeds to fund Saudi industry, including defense: finance minister

DAVOS, Switzerland - Saudi Arabia will pump the proceeds from last month’s listing of oil giant Saudi Aramco into the local economy over several years, including building up the domestic defense industry amid tensions with Iran, its finance minister said on Tuesday.

“If you look at history, we in this region have managed to weather through worse geopolitical situations, including actual, real wars,” he said in an interview on the sidelines of the World Economic Forum. Riyadh and Washington blame the strikes on Iran, which denies involvement but has threatened to close the Strait of Hormuz shipping channel in retaliation for sanctions placed on its crude exports by Western powers.

With nearly $30 billion coming into PIF coffers from Aramco’s local share offering last month, new and existing local industries, including defense and technology, will get a boost in capital, Jadaan said. He also predicted a smaller deficit by the end of the year than announced last month, when Riyadh said it could face a deficit of nearly $50 billion this year.

😂😂😂😂😂😂😂😂... Local defense industry 😂😂😂.

راحت أموال أرامكوا هل يعقل أن يتكلم شخص أقتصادي أو يعمل في الاقتصاد نبيع شركات نفط و نبني مصانع أسلحة و البلد لا فيها قاعدة صناعية ولا وطنيين متخصصين في هذا الشأن قد تحتاج لثلاثين عام على أقل تقدير وأستيرادالخبراءو الأدوات للبناء في الداخل كانك تشتري من الخارج ونصفهم سيكون جواسيس

Did Saudi Arabia sell off its national asset for individual gain?

RussiaLeaveIran

I. Don't. Care.

Every day oil is $60/bbl Saudi dips into reserves, to keep their country running. Looking back, oil has been under that threshold, a lot; but not as much as in the future. Taking Aramco public was a successful attempt to monetize future 'profits' in a failing legacy asset.

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Source: Reuters - 🏆 2. / 97 Read more »