Saudi Aramco courts international investors to underwrite shares

Published August 28th, 2016 - 07:00 GMT
Saudi Energy Minister Khalid Al Falih stated that huge emphasis will be put in the future on foreign investments. (File photo)
Saudi Energy Minister Khalid Al Falih stated that huge emphasis will be put in the future on foreign investments. (File photo)

Saudi Energy Minister Khalid Al-Falih revealed that Aramco shares underwriting might be issued in the beginning of 2018. However, it has not been decided yet in which stocks the underwriting will be conducted.

Falih affirmed during a seminar at the U.S.-Saudi Arabian Business Council Conference that Aramco is now looking for strategic partners to enroll in the underwriting and that the underwriting will be available for all investors.

He said that this step will make the company more attractive for the international partners of Saudi Arabia and will open new markets for it thanks to Aramco’s transparency.

“If you are enlisted, this makes you more attractive to international partners and parties because of the company’s transparency,” said the energy minister, adding that the underwriting will enable the company to access foreign projects in the future.

He declared that Saudi Arabia will focus on diversifying energy sources in the Kingdom and will add, in the coming phase, renewable energy especially the solar one to its local projects’ package.

In a speech he delivered after the conference, Falih stated that huge emphasis will be put in the future on foreign investments. “We have started the first foreign investment with Uber, one of the biggest investments in a technology private owned company. This strategy has started to see success and up to 80% of the company clients in Saudi Arabia are women.”

Moreover, members of the Organization of Petroleum Exporting Countries (OPEC) will meet on the sidelines of the International Energy Forum (IEF), which groups producers and consumers, in Algeria from Sept. 26-28.

In this matter, Falih told Reuters that no suggestions have been broached regarding freezing production of OPEC.

By Wael Mahdi
 

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