1. Understanding the Saudi Aramco IPO
- Author:
- Simon Henderson
- Publication Date:
- 11-2019
- Content Type:
- Policy Brief
- Institution:
- The Washington Institute for Near East Policy
- Abstract:
- economically transform the kingdom. On November 3, Saudi Arabia formally announced plans for the partial selloff of its state-owned oil company, to begin sometime next month. The successor of the Arabian American Oil Company, originally established by U.S. firms, Saudi Aramco is easily described in superlatives. It is the largest oil producer in the world, with the lowest production costs, and has a reputation for being extremely well run, all of which have helped it become the most profitable company on the planet. Yet being situated in the Middle East, having key installations vulnerable to Iranian attack, and selling oil to countries increasingly concerned about climate change are hardly factors conducive to favorable long-term prospects. The kingdom simultaneously claims to be diversifying away from its dependence on oil, adding to the uncertainty about its approach.
- Topic:
- Foreign Policy, Oil, and Business
- Political Geography:
- Middle East, Saudi Arabia, and United States of America