DAVOS: Some of the world’s leading investment bankers will go direct from Davos to Riyadh to take part in a “beauty parade” in front of Saudi Aramco officials to pitch for lucrative roles in the oil company’s planned initial public offering (IPO) later this year.
One banking chief, speaking on the sidelines of the World Economic Forum annual meeting in Switzerland, said that he and fellow executives were preparing to travel to the Kingdom early next week for a round of presentations in response to “request for proposal” invitations from Aramco.
Some of the biggest banks in the world are believed to be making the trip. In addition to HSBC, JP Morgan and Morgan Stanley, all of whom have already been working to advise the Saudis on the IPO, American banks Goldman Sachs and Citibank are believed to be pitching for the next phase of the process. The German giant Deutsche Bank is also believed to be involved in the presentations.
“If you’ve got ambition in the banking world you have to be involved in this. Everbody wants to be there. It’s the biggest privatization in history,” the banker said, speaking on condition of anonymity because of the delicate stage the IPO plans have reached.
The next phase — after advisers are chosen — will involve hard decisions on the venue for the listing, as well as possible proposals to sell some shares in Aramco to Russian and Chinese investors. In Davos this week it emerged that Russian investors had approached Aramco to discuss a possible share sale, possibly alongside Chinese investors.
The contest to stage the IPO — which could amount to $100 billion (SR374.8 billion) in value if the official valuation is met — appears to have come down to a choice between New York and London, in addition to a listing on the Riyadh stock exchange, the Tadawul. Hong Kong is also a possibility, especially if a big Chinese investor emerges.
The banker said he thought London was the favorite at this stage, mainly because of legal and regulatory hurdles in the US, though he stressed the decision was as much political as financial.
“New York presents a range of problems, with Sarbanes-Oxley (US investor protection laws), as well as Jasta (anti-terrorism financing legislation) and the whole system of class actions. The London legal system is different in many respects,” he said.
Aramco officials are using the opportunity of the Davos meeting to meet advisers and other potential stakeholders about the IPO.
Big banks head to Riyadh from Davos for Saudi Aramco ‘beauty parade’
Big banks head to Riyadh from Davos for Saudi Aramco ‘beauty parade’
Saudi Arabia’s cultural sector is a new economic engine between Riyadh and Paris, says ambassador
RIYADH: Culture has become a fundamental pillar in bilateral relations between France and Saudi Arabia, according to the French Ambassador to the Kingdom, Patrick Maisonnave.
Maisonnave noted its connection to the entertainment and tourism sectors, which makes it a new engine for economic cooperation between Riyadh and Paris.
He told Al-Eqtisadiah during the opening ceremony of La Fabrique in the Jax district of Diriyah that cultural cooperation with Saudi Arabia is an important element for its attractiveness in the coming decades.
La Fabrique is a space dedicated to artistic creativity and cultural exchange, launched as part of a partnership between the Riyadh Art program and the French Institute in Riyadh.
Running from Jan. 22 until Feb 14, the initiative will provide an open workspace that allows artists to develop and work on their ideas within a collaborative framework.
Launching La Fabrique as a space dedicated to artistic creativity
The ambassador highlighted that the transformation journey in the Kingdom under Vision 2030 has contributed to the emergence of a new generation of young artists and creators, alongside a growing desire in Saudi society to connect with culture and to embrace what is happening globally.
He affirmed that the relationship between the two countries is “profound, even cultural par excellence,” with interest from the Saudi side in French culture, matched by increasing interest from the French public and cultural institutions unfolding in the Kingdom.
Latest estimates indicate that the culture-based economy represents about 2.3 percent of France’s gross domestic product, equivalent to more than 90 billion euros ($106.4 billion) in annual revenues, according to government data. The sector directly employs more than 600,000 people, making it one of the largest job-creating sectors in the fields of creativity, publishing, cinema, and visual arts.
Saudi Arabia benefiting from French experience in the cultural field
Maisonnave explained that France possesses established cultural institutions, while Saudi Arabia is building a strong cultural sector, which opens the door for cooperation opportunities.
This comes as an extension of the signing of 10 major cultural agreements a year ago between French and Saudi institutions, aiming to enhance cooperation and transfer French expertise and knowledge to contribute to the development of the cultural system in the Kingdom.
He added that experiences like La Fabrique provide an opportunity to meet the new generation of Saudi creators, who have expressed interest in connecting with French institutions and artists in Paris and France.
La Fabrique encompasses a space for multiple contemporary artistic practices, including performance arts, digital and interactive arts, photography, music, and cinema, while providing the public with an opportunity to witness the stages of producing artistic works and interact with the creative process.
