IPO – The Biggest Change in the History of Saudi Arabia
Aramco Company and its sales part is the reason for Muhamad Bin Salma’s huge turnaround plan for Saudi Arabia.
Saudi Arabia is going through a massive transformation under the rule of Prince Muhammad Bin Salman. The Saudis are now diverting their attention from the oil revenues to the mega change in the structure of the country and investing heavily on the IPO.
Saudi Aramco, the largest and the most profitable company of petroleum and natural gas has formed a foundation plan with Muhammad Bin Salman to set forth the steps in this new journey.
The economic initiative of Prince Salman is to push Aramco in this economic initiative and help Saudi Arabia to bring social reform in the country including the freedom of women.
The critics of such a reform causing hindrance have been sent to the jails and the plan has picked up the pace. After years of delay, the green single has been given and the plan is set forth.
Why is IPO such hype?
Aramco Company and its sales part is the reason for Muhamad Bin Salma’s huge turnaround plan for Saudi Arabia. It is said that this plan would generate $100 billion. This value-based on $2 trillion valuations is deemed to be unachievable but this is still going to be the largest market share of all the times.
A NEON project of $50bn, a megacity is planned for future on the red coast sea and the official says that it will have talking robots and flying taxis. It is going to the gateway towards a great future.
There is no confirmed foreign listing presented yet but Saudi Prince is heavily relying on the riches of Saudi. The representatives of the kingdom are also visiting the capitals of different capitals to encourage them for the investments.
Kristian Ulrichsen from Rice University said, “Should shares fall abruptly after they begin trading, it would be a highly noticeable blow to the reliability of the economic modifications so closely related with Mohammed bin Salman, which is why the valuation is so important”.
Importance of Aramco:
10 percent of the world’s oil is pumped by this company from under the deserts. It has generated more profit than Apple inc., Google’s parent Alphabet Inc. last year’s net income was calculated to be $111 Billion. It is the world’s fundamental oil supplier.
The economic journey of Muhammad Bin Salman:
After since he has come to power, he has been investing and taking a lot of initiative especially in the fields of entertainment and tourism. He has also invested in the luxury Islands. Women were never before welcomed to the workplace and in the concerts before. He has also imposed taxes on the use of electricity and raised the prices of fuels.
The sale of Aramco has brought a lot of exposure on a global scale although people are worried to share their family jewel with foreigners. The word Aramco means the family and it feels like the place is home to us said one of the employees named Naif Gaufaly.
People are also worried about their place not being the same since one other employee said that I was born and raised here and my parents worked here for 50 years. I am afraid that my kids’ won’t be able to live in the Aramco I knew after IPO, said 33 years old Haya.
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