Economy
Sunday 03 April 2016
Saudi Arabia is struggling with the low price of oil – which is also in the household significantly. After billion deficit in 2015, the country urgently needs structural reforms initiate: Now, the state oil company Aramco is to be floated on the stock market .
The oil power Saudi Arabia is suffering massively under the low price of oil, prices fall through the floor for two years. Now the country responded and announced a change in strategy.
In a five-hour meeting with the agency Bloomberg Deputy Crown Prince Mohammed Bin Salman explains his vision for the future: He wants to bring the largest oil supplier and the Saudi state-owned company Aramco by 2018 to the stock exchange. Private investors should be able to acquire around five percent of the shares as part of the new strategy – the rest would remain in control of the kingdom. For the management of oil revenues, government funds should be created, so Salman: It would be the largest in the world
The Saudi SWFs would with an estimated two trillion the currently largest SWFs from Norway, of its oil wealth in “Statens. pensjonsfond Utland “bundles, surpassing by far. By comparison, Norway’s fund was late last year when only 825 billion US dollars. The Saudi Fund would be large enough to Apple to buy Google’s parent company Alphabet, Microsoft and Berkshire Hathaway -. The four largest publicly traded companies in the world
“The IPO of Aramco and the sale of shares would technically seen oil production replaced as the main source of income by investing, “said the Saudi prince in the interview. The state funds in which the proceeds from the oil transactions are managed should help the country to diversify its economy, Salman explained further. The conversion could lead to oil giants Aramco and therefore Saudi Arabia in the post-oil era. Within 20 years, so Salman, Saudi Arabia would be a body independent of the oil industry.
price increase for gasoline, electricity and water
The design for a structural change joins in a series of measures initiated in the past year the UK. However, experts fear that this is not sufficient. The state budget had a record decline of 98 billion dollars converted 89.4 billion euros, completed last year. The government moved immediately Consequences: Gasoline prices have been drastically increased and reduced subsidies for water and electricity. More of such short-term measures under a “National Transformation Plan” will introduce over the coming month the royal family.
The coming years will show whether the turnaround comes too late in response to the price war on the oil market. A study by the International Monetary Fund (IMF) from 2014 shows in any case that there are “many examples for failure,” when oil powers are trying to reduce their dependence on black gold. The Gulf states might have missed their best chance, when the oil price was still at $ 100 per funded barrel.
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The plans of Crown Prince Mohammed Bin Salman nevertheless occur in severely restricted oil empire to a revolution. Almost eighty years after discovery of the first Saudi oil sources, the royal family has apparently found in 30-year-old crown prince someone who could open up the country and thus usher in a new economic era. Salman himself described his plans as “very aggressive” – but did Aramco, the largest oil producer in the world to shape the energy future and to control: “. We do it this way” “From now on,” said the prince,
whether the conservative set part of the royal family and especially the religious group in the country mitträgt change, to be seen – but could soon the question hanging in the air, whether the country has a choice at all. The International Monetary Fund has warned Saudi Arabia that the financial reserves of the country would be depleted in just five years without savings and reforms.
Source: n-tv.de
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