Dubai PR Network, Online Press Release from Dubai and Middle East
 
Business, Banking and Investments(Banking & Investments)
Filter PR by
  
Saudi Aramco's Debut IPO Could Support The Sovereign's Net Asset Position
 

November 17, 2019:    S&P Global Ratings said today that Saudi Aramco's forthcoming IPO on the Saudi Stock Exchange (the Tadawul) could enable the sovereign to further strengthen its net asset position.

And, if subsequently effectively deployed, the funds raised could be used to support longer-term economic growth in Saudi Arabia (unsolicited; A-/Stable/A-2). Saudi Arabia currently fully owns Saudi Aramco, which is the world's largest company by a significant margin. It plans to sell about 1%-3% of the company through an IPO.
 
We understand that the bulk of the funds raised will go to the government or the Public Investment Fund, potentially adding to the sovereign's already strong fiscal net asset position of 72.7% of GDP.

Productively deployed, we believe the assets could also help maintain growth potential through our three-year ratings horizon. Public investment in Saudi Arabia is forecast to remain quite high, even though the sovereign has implemented some fiscal belt-tightening. Government's expenditure is intended to support the non-oil economy and private sector demand. Our current forecast for average GDP growth is 1.6% per year in 2019-2022.
 
Our ratings on Saudi Arabia continue to be supported by its strong external and fiscal asset positions. The ratings are constrained by high geopolitical risks, sizable fiscal deficits, and the limited transparency of its institutional framework and the reporting of government assets. (see 'Saudi Arabia 'A-/A-2' Ratings Affirmed; Outlook Stable,' Sept. 27, 2019).

Saudi Arabia will remain by far the largest shareholder in Saudi Aramco and plans to retain control over the company's business and financial strategy. We continue to consider that the overall credit profiles of Saudi Arabia and Saudi Aramco are closely linked. As a result of the recent bond and forthcoming equity offerings, there has been an increase in financial and operating disclosures.

In our view, this has improved transparency and is supportive for investors. The move is also an important milestone for the development of capital markets in Saudi Arabia. The IPO will also help to benchmark Saudi Aramco against regional and global peers.

 


Posted by : Dubai PR Network Editorial Team
Viewed 7814 times
PR Category : Banking & Investments
Posted on : Sunday, November 17, 2019  10:06:00 AM UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of DubaiPRNetwork.com.
Previous Story : Ahmad Bin Shafar receives global recognition for his efforts...
Next Story : Empower develops AI based technology for TES operation savin...
Email this article Print this article

Share this article with your friends and followers
NewsVine
Back to Section Home

Related Stories



 
 
Most Viewed Press Release posted in the last 7 days
DERMAdoctor: Peel the Difference & Boost Your Skin with DERMAdoctor's Vitamin C Peel Pad! [13694-Views]
Kristina Fidelskaya Press Release AW2020 [8284-Views]
Maybelline's Falsies Lash Lift Make Their Way to the GCC [8168-Views]
Mattify Your Life With Foreo's UFO Activated Mask [7613-Views]
Easa Saleh Al Gurg Group Pledges AED 10 Million to DHA to AID Covid-19 Prevention Measures [5551-Views]
Top 13 Features of the HONOR MagicWatch 2 [5441-Views]
Slip into style at home with Steve Madden [4972-Views]
Dubai Health Authority Partners With Twitter to Provide Health Information on COVID-19 [4910-Views]
Hamdan Bin Mohammed Heritage Center Concludes a Record-Breaking Year for Heritage Sports [4819-Views]
HONOR Brings the Brand-New HONOR 9X PRO to Customers in the UAE [4782-Views]
What Parents Need to Know About the Coronavirus [4740-Views]
Realme Set to Launch Its Latest Range of Smartphones in UAE [4715-Views]
Keeping the Community Safe and Informed on COVID-19 [4557-Views]
A Perfect Blend of Technology and Style: INFINITI of Arabian Automobiles Offers Special De... [4544-Views]
Union Coop to Operate 24 Hours With All Goods Available [4459-Views]
Marina Rinaldi by Roksanda SS 2020 Wearing Art [4398-Views]
Sportmax Leather Trend SS 2020 [4178-Views]
Horological Machine N°10 ‘Bulldog' [4044-Views]
Carrefour Statement – Opening Hours [4032-Views]
Brighten Up With Marina Rinaldi [4026-Views]
Max Mara Bridal 2020 [3983-Views]
Etisalat Cloudtalk Meeting Now Allows Up to 50 Participants [3904-Views]
Deema Ajlani Ramadan Capsule Collection, 2020 [3855-Views]
Jaguar Land Rover Confirms Temporary Suspension of Production at UK Manufacturing Faciliti... [3806-Views]
Perfect Polka Dots [3782-Views]
 
RSS Facebook Twitter LinkedDin
 
Top Sections
 
Top Stories