Over a year in making, Aramco stake sale brings rare foreign investment to Saudi

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 36 sec. here
  • 49 min. at publisher
  • 📊 Quality Score:
  • News: 182%
  • Publisher: 92%

Canadian News News

Canada News,Breaking News Video,Canadian Breaking News

Identity and quality of investors in latest sale remains unknown

Saudi Arabia began preparing more than a year ago to sell a new chunk of state oil giant Aramco, targeting foreign investment that has lagged goals for years and is needed for an ambitious economic transformation.Over half of the $11.2 billion Aramco shares were sold to foreign investors, a far cry from five years ago, when they largely shunned its $29.4 billion initial public offering, citing concerns about risks around governance, regional geopolitics and the environment.

More than 100 new investors bought into the $1.8 trillion company, one source familiar with the matter said. It was not immediately clear how many of those were from outside the region, though the source said they included investors from the United States, Britain, Hong Kong and Japan. Driving the so-called giga-projects, including a futuristic city in the desert, at the heart of Vision 2030 is the $925 billion Public Investment Fund , the kingdom’s sovereign wealth fund doing much of the spending at home and abroad.

Saudi Arabia has posted a budget surplus only once since 2014, in 2022 - when Brent crude averaged around $100 and Aramco posted a record $161.1 billion in profit.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in CA

Canada Canada Latest News, Canada Canada Headlines