MEDIA: Saudi Arabia plans major sale of Aramco shares to diversify economy

Saudi Arabia is set to announce a significant sale of Saudi Aramco shares, valued between $10 billion to $20 billion, as early as this week. The capital raised from this sale is intended to ease the kingdom's short-term financial pressures and support its ambitious economic diversification projects, including the development of a new city and a global airline.

Earlier this year, Saudi Arabia issued $12 billion in bonds and transferred substantial foreign exchange reserves to sovereign wealth funds. The success of the Aramco share offering will depend on the level of interest from international investors. The kingdom has considered selling additional Aramco shares for years but postponed due to uncertain economic conditions.

Now, with global stock markets at record highs and oil prices above $80/barrel, the timing appears favourable. If successful, this transaction could significantly advance Saudi Arabia's efforts to reduce its reliance on oil revenue, fostering sustained growth in various other sectors.