Business

New Collection – Aramco’s IPO

By November 5, 2019 No Comments

Every week we take a deeper look at issues and stories changing your world. In our Collections, Mogul News gives you the tools you need to make up your own mind.

Covering topics ranging from business and tech to global affairs and politics, they bring together handpicked articles offering insight and analysis in one place.

This week we look at Saudi Aramco’s IPO. Here’s a quick note from our editor to give you a brief overview.

Saudi Arabia’s wealth is founded on oil. Every day it pumps 12 million barrels out of its sands. It has enough oil in the ground to keep up this rate of production for another 60 years, without any new reserves being found.

The abundance of accessible oil has allowed the Kingdom to increases GDP from $5bn in 1970 to $683bn in 2017. Riyadh, its capital, has grown from a small desert town to a city lined with skyscrapers. It leads the oil cartel OPEC, helping it exert power over the world economy, like during the oil embargo in 1973.

Saudi Aramco, the Saudi Arabian national oil company, is the most profitable company in the world. But the world wants to end its reliance on fossil fuels. With that, Saudi Arabia must end its own dependency on oil.

Now Prince Mohammad bin Salman, the country’s effective ruler, is letting the world own a portion of Saudi Aramco. With the funds raised by an IPO he hopes to diversify the Saudi economy. Will it be enough? And what challenges lay in store for Aramco?

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