ADVERTISING
ADVERTISING
Click here to see over 150 oil prices.
Start trading CFDs on over 2200 more instruments
Click here to see over 150 oil prices.
Click here to see over 150 oil prices.
Start trading CFDs on over 2200 other instruments
Click here to see over 150 oil prices.
Click here to see over 150 oil prices.
Start trading CFDs on over 2200 more instruments
Click here to see over 150 oil prices.
Click here to see over 150 oil prices.
Start trading CFDs on over 2200 more instruments
Click here to see over 150 oil prices.
Learn more
Last week, Saudi Arabia hosted the most sensible financiers and tech tycoons to attract more investment into its economy as it seeks to diversify away from oil.
ADVERTISING
The forum brought together prominent Wall Street bankers, such as JP Morgan CEO Jamie Dimon and Citigroup CEO Jane Fraser, as well as ousted WeWork CEO Adam Neumann, all attracted by the potential opportunities presented through Saudi Arabia’s sovereign wealth fund, the Public Investment Fund. Fund (PIF). ), you can simply propose.
The presence of Wall Street’s most sensible financiers suggests that Saudi oil money remains attractive to foreign investment, but the new war in the Middle East may derail Saudi oil giant Aramco’s plans to sell more shares to the public.
ADVERTISING
ADVERTISING
Last month, the Wall Street Journal reported that Aramco, the world’s largest oil company, was contemplating selling percentages worth up to $50 billion. If the Kingdom completes the percentage sale, it would be the largest bid of its kind in history.
At the Future Investment Initiative forum, Aramco’s booth is quieter than that of the Public Investment Fund, writes Iain Martin in Forbes.
Saudi Arabia and its Crown Prince Mohammed bin Salman are betting on foreign investment, generation and megaprojects such as the futuristic $500 billion NEOM city to diversify their economy away from oil as a component of the Vision 2030 strategy.
But NEOM’s commission is free of controversies, ranging from doubts about the option of carrying out a very ambitious architectural and urban design to human rights violations, unusual in the Kingdom.
The war between Hamas and Israel and further destabilization imaginable in the Middle East may simply deter some Saudi Arabian investors who are already hesitant.
ADVERTISING
“Riyadh will have to feel geopolitical pressure, but its economic transformation timeline still presents attractive opportunities,” Kamel added.
Saudi Investment Minister Khalid Al-Falih told the forum: “We will turn demanding situations into opportunities by investing in our energies and human resources. “
Until Saudi Arabia manages to diversify its economy away from oil, it will want oil costs to be at peak levels to balance its budget and have enough cash to invest in futuristic projects.
Earlier this month, the Finance Ministry said Saudi Arabia was on track to fall into a budget deficit in the 2023-2024 fiscal year, despite emerging oil costs. Deficits will also continue due to Riyadh’s expansive spending plans, the ministry said. These plans appear to be expansionary enough to offset the effect of higher oil costs resulting from production caps.
ADVERTISING
“On the other hand, rising oil costs – while expectations of strong oil demand persist for the rest of the year – a possible modification of OPEC’s oil production cuts and an acceleration of structural reforms and investments may simply breathe life into growth,” the IMF said. stated in his assessment.
“On the other hand, declining oil costs due to weak global activity constitutes a major threat in the near term, while faster adjustments in fossil fuel demand may simply hamper expansion in the medium to long term,” the fund said.
By Tsvetana Paraskova for Oilprice. com
Further reading in Oilprice. com:
Back to home page
ADVERTISING
ADVERTISING
ADVERTISING
ADVERTISING
ADVERTISING