Saudi Arabia attracts global investors with Aramco share sale

Saudi Arabia has successfully placed more than half of an $11.2 billion share sale in Aramco with foreign investors, showcasing a strong interest from global markets. This move is part of the kingdom's strategy to reduce its reliance on oil revenue and diversify its economy.

The secondary share sale witnessed a surge in demand from investors in the US, UK, Hong Kong, and Japan, surpassing the interest seen during Aramco's IPO in 2019. The shares were priced at 27.25 riyals ($7.27) following meticulous planning and setting a price range of 26.70-29.00 riyals for the offering.

With over 120 new international investors joining Aramco as a result of this transaction, Saudi Arabia is advancing its Vision 2030 initiative led by Crown Prince Mohammed bin Salman. The kingdom intends to finance various projects, such as electric vehicles and futuristic cities, through its Public Investment Fund (PIF).

The $925 billion sovereign fund, PIF, is poised to receive proceeds from the share sale, which could aid in addressing the kingdom's budget deficit amidst declining oil prices. The successful placement of the shares marks a significant milestone in Saudi Arabia's quest to attract global investment and broaden its economic base.

The strong response from foreign investors in Aramco's share sale underscores Saudi Arabia's commitment to diversifying its economy and reducing its dependence on oil. By welcoming new international investors and channeling funds into innovative projects, the kingdom is taking proactive steps towards a more sustainable and diversified economic future.