Arab Today, arab today saudi postoil plan aims for longterm prosperity
Last Updated : GMT 14:36:23
Arab Today, arab today
Arab Today, arab today

Saudi post-oil plan aims for long-term prosperity

Arab Today, arab today

Arab Today, arab today Saudi post-oil plan aims for long-term prosperity

Deputy Crown Prince Mohammed bin Salman
Jeddah - Arab Today

The economic plan unveiled by Deputy Crown Prince Mohammed bin Salman, second deputy premier and defense minister, is aimed at diversifying the economy away from oil, which would ensure the country’s prosperity over the long term.
This is according to a report published by Bloomberg on Monday under the headline “Four Things We Learned About Saudi Arabia From the Deputy Crown Prince.”
The report follows in the wake of a five-hour interview the business news agency conducted with Deputy Crown Prince Mohammed at the royal compound in Riyadh last week, where he outlined plans to place the country’s most valued assets into a massive $2 trillion sovereign wealth fund.
The report stated that the Kingdom is clearly “thinking past oil” with the “center piece of the 30-year-old prince’s vision for a revamped Saudi Arabia is a plan to turn the Kingdom’s Public Investment Fund into a sovereign wealth fund billed as the largest on the planet, a fund so large that the country will eventually rely more on investment income than oil income.”
“For decades, the world’s largest oil exporter has kept most of its wealth at the Saudi Arabian Monetary Agency, ignoring calls from economists at home and abroad to create a separate sovereign fund. But with the slump in crude prices, the status quo can remain no more,” the report stated.
“While an eye-grabbing figure, the fund’s $2 trillion of assets would mainly be due to Aramco. The plan is to transfer most of the oil giant to the fund to sit alongside holdings in commercial and financial companies,” the report stated. The report stated that the prince has billed it as one of the largest funds on earth, which would be capable of buying the world’s four largest companies by market value, which includes Apple $602 billion, Alphabet (Google) $514 billion, Microsoft $434 billion and Berkshire Hathaway $348 billion.
Bloomberg also reported that apart from one megafund, the Kingdom has to deal with other challenges, including its budget deficit that was almost 15 percent of the economy last year and unemployment among Saudis aged 30 or under at 29 percent.
“So Prince Mohammed also proposes finding other ways to raise money, with plans to generate $100 billion per year in additional non-oil revenue by 2020. Measures range from cutting the cost of subsidies for household bills, taxes on consumers and a Green Card-style program for expatriates,” the report stated.
The initial public offering of shares in Aramco could come as soon as next year and would be “one of the biggest in corporate history” with 5 percent of the mother company offered to the public as well as a number of its subsidiaries and the rest going to the megafund.
“A back-of-the-envelope calculation puts the value of Aramco at about $2.5 trillion, using a conservative $10 per barrel for its reserves. But what foreign investors are willing to pay is unclear, given the fact the company has never published financial details. Based on the estimate, the IPO could raise as much as $125 billion.”
The report stated further that these changes to subsidies and new taxes and fees would be good for government coffers, “but they also mean that Saudis, foreign residents and companies will need to cough up more money in a country where the population has grown accustomed to government largesse.”
“In the first reduction of energy subsidies announced in late December, the price of 91 octane gasoline rose 67 percent, though it is still among the cheapest in the world. Saudis rushed to the pumps to fill their tanks before the midnight price rise. The increase in water tariffs led to a flurry of complaints this month when Saudis received their new bills. Inflation accelerated to 4.3 percent in January,” the report stated.
Source: Arab News

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today saudi postoil plan aims for longterm prosperity Arab Today, arab today saudi postoil plan aims for longterm prosperity

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Zainab al-Maliki reveals herTV presenter models

GMT 18:12 2017 Friday ,24 February

Zainab al-Maliki reveals herTV presenter models
View News in Arabic - Business: اقتصاد عربي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday