Saudi Arabia targets $2trn oil IPO

Saudi deputy crown prince Mohammed Bin Salman confirmed the Kingdom is looking at a listing of less than 5 per cent of the state oil company, which will value it at more than $2tn, he said on Monday.

In an announcement made as the kingdom’s rulers make public its economic “vision”, Prince Mohammed who is the son of King Salman, said all financial information related to Saudi Aramco will be disclosed.

In a television interview with Al Arabiya, he said he wants to convert Saudi Aramco into a holding company. Subsidiaries of the entity will also be listed and its board will be elected.

The economic plan for the period to 2030 has been developed by the Council of Economic and Developmental Affairs of which Prince Mohammed is in charge. The country’s oil industry, which is the main driver of government revenues, is also under his aegis.

The prince claimed the Kingdom will be able to live without oil in 2020, and added that the economic vision would not be linked with the oil price.

“We have an addiction to oil,” he said. “This is dangerous … it has delayed the development of other sectors.”