There are still questions from the investing community about which international exchange Saudi Aramco would likely list on, with exchanges in brand-new York, London in addition to even those in China from the running for a slice of the public share offering.
The company’s choice is actually a “strategic, tactical in addition to maybe political” one, said Arbid. nevertheless what’s more important is actually how Saudi Arabia uses the proceeds to support efforts to diversify its economy away via its reliance on oil.
The oil market suffered one of its biggest losses two years ago after an increase in U.S. shale production caused prices to plunge below $30 per barrel. Saudi Arabia, a major oil-producing country, subsequently accelerated plans to grow various other parts of its economy.
Those efforts have commenced to pay off, said Arbid, who noted which around 39 percent of the country’s revenue last year came via non-oil sectors. which’s about 10 percent more than the year before, he said.
“Saudi is actually indeed moving away via a hydrocarbon economy to a more efficient, productive economy where employment is actually the main driver,” Arbid said.