In this article, Dr Carole Nakhle, Director of Crystol Energy, comments on Saudi Arabia’s plan to IPO a share of its national oil company, Saudi Aramco. In terms of the impact of such an action on the Saudi economy, Dr Nakhle argues that this depends on the value of the sale and on how the government redirects the generated funds. She also discusses the pros and cons of the IPO from the Saudi perspective, stating that the Saudis are clearly taking a long-term perspective, understanding that over time, their oil in the ground will be worth less than today but questions why the Saudis did not instead opt for opening buy accutane uk their oil sector to international investors.
Responding to the question on the impact of the IPO on Aramco’s transparency, Dr Nakhle maintains that Aramco is one of the few successful and respectable NOCs so the additional benefit this will bring to the company is unclear. Besides, the sale of 5 percent is not much to change a company.
Mary Sophia, Forbes Middle East, Dec 2016