Video: Why is Aramco’s IPO a key issue on Saudi crown prince’s overseas trip?
Nomura Asset Management CEO Tarek Fadlallah discusses Saudi Arabian Crown Prince Mohammed bin Salman’s first public trip. Fadlallah speaks on “Bloomberg Markets: Middle East.”
What is to be expected from this trip?
“Clearly, this is about rebuilding confidence in the Saudi economy and rebuilding relationships in the aftermath of what took place over the last few months in relation to the Ritz (corruption probe),” said Fadlallah.
“The Saudi crown prince is reaching out with an innovative, modern agenda, trying to convince partners around the world that Saudi is open for business.”
Is it too early to have an announcement about Saudi Aramco’s IPO on this trip?
“Something needs to be announced relatively quickly, because the time frame of having a listing outside Saudi is getting somewhat limited, so I would expect an announcement if not on this trip, certainly before the end of Ramadan,” he said.
“One needs to make an announcement well in advance of the listing and Saudi authorities have promised a 2018 event and one of the likely scenarios is that we get a local listing on Tadawul with a follow up international listing in 2019 and beyond.”