Saudi Aramco’s initial public offering (IPO), slated for launch in early 2018, could improve corporate transparency in the Kingdom, draw additional foreign money into other Riyadh-listed stocks and enhance the country’s global standing.
The IPO, first outlined by Deputy Crown Prince Mohammed bin Salman earlier this year, would involve floating less than 5 percent of Aramco’s shares. Were it to raise $100 billion, as mooted by Bloomberg, it would be quadruple the size of the next largest IPO — China’s Alibaba, which generated $25 billion from its 2014 share sale.
Saudi officials have indicated Aramco, the Kingdom’s oil producer, would join Riyadh’s bourse and may also list on foreign exchanges; global markets will be scanning today’s 2017 budget announcement for any more details on the IPO.
“Obstacles in terms of transparency, depth of local markets and reservations about governance remain large,” Fitch Ratings wrote in a September note that gave a negative outlook for Saudi Arabia.
Aramco will float shares in the entire company, not just its refining or distribution units, its chief executive Amin Nasser told Bloomberg in October. Nasser said it would “very soon” reveal the investment banks advising on the flotation.
Aramco has appointed some IPO advisers including JPMorgan Chase and independent firm Michael Klein, according to media reports, with further advisers likely to be recruited. The oil producer has met banks including Rothschild & Co, Lazard and Moelis, Bloomberg reported in September.
One of the aims of listing Aramco on Riyadh’s stock exchange is that it would likely entice foreign investors to buy into other listed Saudi companies, especially in light of Deputy Crown Prince Mohammed bin Salman’s publicly stated aim to privatize other state-owned firms and international funds’ muted enthusiasm for Saudi equities since the market was opened up to direct foreign investment in June 2015.
“The Aramco IPO is not just going to help make the company more transparent but will also help the country become more transparent,” said John Sfakianakis, director of economic research at the Gulf Research Center in Riyadh.
“The economic impact is beyond just attracting foreign investors in the local market but also placing Saudi Arabia on the global map of reform, diversification and progress.”
Valuation?
Guessing Saudi Aramco’s value has almost become a dinner party game, with estimates ranging anywhere from $2 trillion to $10 trillion. Such variances are an implicit recognition that markets are uncertain as to true size of Saudi Arabia’s oil deposits.
Officially, the Kingdom has 266 billion barrels of proven oil reserves, 18 percent of the global total, according to OPEC. But that data comes from Aramco itself and estimating reserves involves more guesswork than producers would like to admit.
“If Aramco’s much-touted IPO does go through, it will be difficult to put a reliable dollar figure on its value,” Dr. Yasser Al-Saleh, a former Aramco engineer and now faculty member at Dubai’s Mohammed bin Rashid School of Government wrote in a blog post earlier this year.
To go public, Aramco will have put its accounts — and oil reserve data — under independent scrutiny and as a state-run company it is likely to be shown as less efficient than its privately-owned counterparts abroad.
OPEC cut
Saudi Arabia, which extracts oil at a fraction of the price of many rival producers, accounts for about one-ninth of all oil production globally.
In November, OPEC surprised markets by agreeing its first output cut in eight years. Previously, the Kingdom had refused to rein in production, instead prioritizing the winning of market share. The imminent output cut sent prices soaring and Brent crude now trades at around $55 a barrel, a 2016 high but still less than half the peak price of 2014.
That rise, of course, helps bolster Aramco’s perceived worth and with a global shift towards greater energy efficiency and away from hydrocarbons, the push to list Aramco could reflect anxiety over the long-term oil price outlook.
Saudi Aramco’s landmark IPO seen boosting transparency
Saudi Aramco’s landmark IPO seen boosting transparency
Saudi Arabia’s fight to protect liver health
- ‘Take care of your liver now, and it will take care of you for life,’ deputy minister for population health tells Arab News
- Saudi Ministry of Health focuses on measures to tackle liver disease
JEDDAH: The liver plays a central role in keeping our bodies healthy. It filters toxins, supports digestion, stores energy and essential nutrients, and helps the body fight infections.
The major concern with liver diseases, however, is that they are often silent killers. The progression is very gradual, and most patients experience no symptoms, leaving them unaware of their condition. This makes awareness and early detection vital.
This is a national health priority for Saudi Arabia’s Ministry of Health, which is focusing on preventive care.
Protecting liver health means preventing long-term complications and improving the quality of life for millions, contributing to the ministry’s targets to improve healthy life expectancy, in line with Vision 2030’s goal of creating a vibrant society.
In an exclusive interview following World Liver Day on Saturday, Dr. Abdullah Assiri, the deputy minister for population health, said that viral hepatitis — especially hepatitis B and C — has been a long-standing concern and is responsible for many cases of chronic liver disease, cirrhosis, and liver cancer.
He said: “In Saudi Arabia, the hepatitis C virus has caused the most cirrhosis, decompensated cirrhosis, and liver transplants.”
Hepatitis is essentially an inflammation of the liver caused by different viruses — types A, B, C, D, and E — each differing in how they spread, how severe they become, and how they are prevented.
Assiri added: “The challenge with hepatitis is that up to 95 percent of people living with the infection globally are unaware they have it, because the illness can remain silent for years.
“In terms of early warning signs, these can be quite vague, including fatigue, abdominal discomfort, or mild jaundice, but there are often no symptoms at all until the disease is advanced.”
Assiri explained that the main reason why liver conditions go undiagnosed until the later stages is that the liver is a remarkably resilient organ.
It continues to function well, even when partially damaged. Unfortunately, by the time symptoms like swelling, jaundice, or digestive issues appear, the disease may have already progressed to cirrhosis or liver failure.
He said: “Late detection can lead to serious consequences, including irreversible scarring of the liver, liver cancer, and life-threatening complications.
“That’s why we strongly recommend that people, especially those with risk factors such as obesity, diabetes, or a family history of liver disease, undergo regular check-ups and screenings.”
Lifestyle is everything when it comes to liver health. Poor diet, lack of physical activity, and smoking all put extra pressure on the liver.
Though alcohol-related liver disease is less prevalent in the Kingdom, other lifestyle factors, like unhealthy eating habits, along with viral hepatitis, play a larger role.
He said: “The good news is that the liver has an exceptional capacity to heal if given the right care. Even early-stage damage can often be reversed through lifestyle changes. I have personally witnessed patients transform their health by adopting better habits.”
As a medical professional Assiri always recommends lifestyle changes centered around four key pillars: nutrition, sleep, relaxation, and exercise. These are all vital to maintaining a healthy liver, as are hepatitis vaccinations.
At the national level the Ministry of Health is tackling liver diseases through policies that focus on prevention, early detection, infection-control practices in healthcare, and effective treatment.
Assiri said: “A major milestone in the national strategy was the introduction of direct acting antiviral medications in 2014, which marked the beginning of an ambitious nationwide effort to eliminate hepatitis C.
“Data shows that a comprehensive program combining targeted screening, aggressive treatment of around 8,000 patients per year, and strengthened prevention strategies could see this disease eliminated in Saudi Arabia by 2030 — or even earlier.
“Eliminating hepatitis C would save an estimated 3,000 Saudi lives and SR10 billion ($2.6 billion) in healthcare costs.
“Importantly, this elimination program also enables broader screening initiatives for other ‘silent killer’ diseases such as hepatitis B, diabetes, hypertension, obesity, and dyslipidemia — allowing us to implement early preventive health interventions on a national scale.”
He added: “Our progress has been substantial. We met our 80 percent treatment coverage targets in 2023, are on track to reduce mortality by 65 percent by 2025, aim to diagnose 90 percent of cases by 2026, and are working to reduce new hepatitis C infections by 80 percent by 2030.”
These metrics reflect a robust public health response, and demonstrate Saudi Arabia’s strong commitment to leading by example in regional disease control efforts.
In addition to this, Saudi Arabia continues to be a leader in medical innovation and research in the field. For example, the world’s first robotic left liver lobe transplant was performed here, demonstrating the Kingdom’s commitment to world-class liver care.
The ministry has several initiatives underway. One of the key programs is premarital screening, which tests couples for hepatitis B and C to reduce the risk of transmission and ensure early intervention.
Additionally, it is expanding community screening drives, especially for high-risk groups, and enhancing access to affordable treatment for hepatitis C. In collaboration with health centers, the ministry continues to promote hepatitis vaccinations for adults who may have missed earlier immunization.
Assiri said: “Take care of your liver now, and it will take care of you for life. The liver is the largest and one of the most vital organs in the human body, yet it often doesn’t get the attention it deserves because symptoms of disease can be silent.
“I urge everyone to lead a more active life: eat healthier, stay hydrated, sleep, and get regular check-ups, especially if you have risk factors like diabetes or obesity.
“Get vaccinated, and remember that small changes in your daily routine can make a big difference for your liver and your overall health.”
Saudi deputy minister receives French official
- They discussed prominent developments on the regional and international front and efforts made in this regard
RIYADH: Saudi Deputy Minister of Foreign Affairs Waleed Elkhereiji received vice chairman of the foreign affairs, defense and armed forces committee of the French Senate and chairman of the France-GCC Friendship Group, Olivier Cadec, in Riyadh.
During the meeting, they discussed bilateral relations and ways to develop them, the Foreign Ministry said in a post on X on Sunday.
They also discussed prominent developments on the regional and international front and efforts made in this regard.
France’s ambassador to the Kingdom, Patrick Maisonnave, was among the officials present at the meeting.
Environmental Week highlights Saudi Arabia’s sustainability vision
- New national index aims to monitor Kingdom’s environmental health, guide policy decisions
RIYADH: Saudi Arabia’s Ministry of Environment, Water and Agriculture launched Saudi Environment Week on Sunday, themed “Our Environment is a Treasure,” to showcase the Kingdom’s efforts in ecosystem protection and sustainable development.
A highlight was the debut of the National Environmental Performance Index, a strategic tool to monitor environmental progress and guide policy.
The event, inaugurated by Minister Abdulrahman Al-Fadhli in Riyadh, brings together government agencies, businesses, nonprofits, and local communities to promote eco-friendly practices and collective responsibility.
Minister of State for Foreign Affairs and Climate Envoy Adel Al-Jubeir also attended, with the event featuring environmental presentations, agreement signings, and children’s performances to encourage positive environmental behavior.
Activities include nationwide exhibitions, workshops on biodiversity and renewable energy, and forums for green innovations.
The new index, which Al-Fadhli described as essential for informed decision-making, will track environmental metrics like air quality, water conservation, and biodiversity.
It aims to align national development with ecological priorities, reinforcing Saudi Arabia’s commitment to sustainable growth.
Al-Fadhli stressed the Kingdom’s leadership in sustainability, prioritizing natural resource protection and societal responsibility. He said that the index ensures accountability and progress as the country builds a greener future.
Al-Fadhli toured the exhibition, featuring sections on vegetation cover, desertification control, biodiversity, waste management, meteorology, and environmental compliance.
The exhibition also includes workshops highlighting Saudi Arabia’s role in fostering environmental cooperation, raising awareness, encouraging private sector investments in sustainable projects, and advancing technology.
The ministry emphasized that the newly introduced index serves as a nationwide monitoring tool, developed in collaboration with the UN Environment Programme.
It is designed to align with government bodies, environmental organizations, and national centers, ensuring cohesion with Saudi Arabia’s ecological priorities.
Key goals include evaluating environmental health, identifying change drivers, and establishing an early detection system for sustainability challenges and progress.
By tracking progress toward environmental targets, the ministry noted that the index identifies gaps for urgent action, enabling data-driven policy adjustments.
Phase 1 focuses on five core areas linked to the National Environment Strategy and Saudi Vision 2030: wildlife conservation, green space expansion, waste management efficiency, pollution levels in air, soil, and water, and weather forecasting accuracy.
Phase 2 will address emerging priorities, such as climate change metrics, reflecting their importance in long-term environmental planning.
The ministry stressed that the index will provide policymakers with actionable insights, driving improvements in ecological resilience, public health, and quality of life for Saudi citizens.
The National Fisheries Development Center has joined the celebrations of Saudi Environment Week.
Riyadh Al-Fageeh, director general of the center, said: “Our participation highlights the importance of preserving the environment, raising awareness, and strengthening quality of life goals. We aim to emphasize the role of institutions and individuals in maintaining ecological balance, aligned with Vision 2030.”
He added: “Saudi Environment Week reaffirms the Kingdom’s commitment to protecting natural resources and leading regional efforts in sustainability. We encourage all citizens and residents to actively participate and contribute to a cleaner, greener future.”
Calligraphy captivates Arabic speakers, non-speakers alike, say enthusiasts
- Traditional script is universal language appreciated for artistry, even if not understood
- New fonts to be used by individuals, organizations in formal settings
RIYADH: Arabic calligraphy occupies a global artistic status that captivates Arabic speakers and non-speakers alike, enthusiasts have told Arab News.
The Ministry of Culture last week introduced two fonts based on Arabic calligraphy that are intended to be used by individuals and organizations in formal settings and for artistic works: Al-Awwal and Saudi.
Abdulrahman Al-Shahed, a founding member of the Saudi Arabic Calligraphy Association, told Arab News that the introduction of the fonts was “a welcome step that contributes to renewing the presence of Arabic calligraphy in digital and contemporary contexts, without separating it from its spiritual and aesthetic roots.”
He described the introduction of the fonts as “a call to rediscover calligraphy as a living identity.”
Arabic calligraphy “amazes viewers with its abstract beauty and contemplative spirit,” Al-Shahed said.
He noted that “many non-Arabs don’t read the letters, but they feel them and their beauty,” adding that Arabic calligraphy was consequently a universal visual language.
It has been evolving for more than 1,400 years, and each generation adds its own influence to the artform, expressing its own spirit and time, he said.
Abdul Adeem Al-Shali, a member of the Fine Arts Group in Qatif, told Arab News that “there is a growing interest among a large segment of non-Arabic speakers in the Arabic language and its letters and words.”
He added: “This interest demonstrates the magic of the Arabic letter and its appeal to the eye of the average recipient, let alone someone with artistic awareness.”
Many foreigners have masterfully drawn calligraphy. The American calligrapher Mohamed Zakariya, who converted to Islam and learned calligraphy in Istanbul, gained widespread fame, for example.
He held numerous calligraphy exhibitions in America and other Western countries, receiving praise from those interested in the art, said Al-Shali.
The arts enthusiast is optimistic about the future of Arabic calligraphy and urged those in charge of art colleges, calligraphy institutes, and Arabic language colleges at universities to “preserve this great heritage and teach it to current generations with great care.”
Prince Badr bin Abdullah bin Farhan, the minister of culture, said that the new typefaces were a tribute to the Kingdom’s rich cultural and artistic heritage, his ministry adding that they were based on historic “inscriptions and Qur’anic manuscripts.”
The design of Al-Awwal highlights the spirit of calligraphy in ancient inscriptions in the Arabian Peninsula.
The Saudi takes into account the artistic principles of the Al-Awwal script and makes it more contemporary.
A group of local and international experts was responsible for their design, with support from the Saudi Authority for Intellectual Property, the King Abdulaziz Foundation for Research and Archives, and the Prince Mohammed bin Salman Global Center for Arabic Calligraphy Initiative.
Arabic calligraphy originated in the Arabian Peninsula and was influenced by the cultural and political conditions in the region and ancient rock art from pre-Islamic civilizations and languages. It spread with the migration of Arabs during the Islamic expansion.
The new typefaces “reflect the historical depth of the Kingdom of Saudi Arabia, which is considered the cradle of ancient human civilizations and the home of various calligraphy and inscriptions, ranging from Musnad, Nabataean, and Thamudic,” the Ministry of Culture said, referencing some of the ancient civilizations from the peninsula.
Saudi project clears 1,050 Houthi mines in Yemen
RIYADH: Members of Saudi Arabia’s Project Masam removed 1,050 explosive devices from various regions of Yemen last week.
The total included 1,020 unexploded ordnances, 24 anti-tank mines, three anti-personnel mines and three explosive devices, according to a recent report.
Ousama Al-Gosaibi, the initiative’s managing director, said a total of 488,656 mines had been cleared since its inception in 2018.
The explosives were planted indiscriminately and posed a threat to civilians, including children, women and the elderly.
The demining operations took place in Marib, Aden, Jouf, Shabwa, Taiz, Hodeidah, Lahij, Sanaa, Al-Bayda, Al-Dhale and Saada.
The initiative trains local demining engineers and provides them with modern equipment. It also offers support to Yemenis injured by the devices.
Teams are tasked with clearing villages, roads and schools to facilitate safe movement for civilians and the delivery of humanitarian aid.
