DAVOS: Saudi Aramco is looking to expand in the United States where President Donald Trump’s tax cuts and support for the oil industry are making business increasingly attractive, its chief executive told Reuters.
Aramco already controls a large refinery in Texas. It is also preparing to launch what could be the world’s largest initial public offer (IPO) and is considering listing its shares in New York among several possible exchanges.
“We are looking at new business opportunities in the US and with the tax cuts it will make it much more profitable ... It is part of our strategy to grow our business in the US,” Amin Nasser said in an interview.
“The Trump administration has been positive toward the energy industry. As long as what they are doing is in the interest of all and the US economy is growing, we are happy,” Nasser said on the sidelines of the World Economic Forum in Davos.
“The whole oil industry is benefiting from the current administration.”
Aramco wants to list this year.
“This is a company that provides a significant portion of the country’s GDP. There are pros and cons for every exchange. It needs to be well analyzed,” Nasser said.
“Of course, the New York stock exchange is the best in terms of liquidity. But it is not just the question of liquidity. It is also about other rules and regulations and the ease of doing business in these markets.”
Saudi Arabia is also considering listing Aramco shares on the local stock exchange, Tadawul, but there are concerns that this could swamp the bourse. Nasser noted an official advisory council’s request for the securities regulator to study the impact of Aramco’s listing on Tadawul.
“All of these things need to be looked at ... They (the advisory council) are asking a legitimate question.”
Nasser said he was not concerned by a growing number of funds and investors — including Norway’s sovereign fund, the world’s biggest — moving away from investing in oil stocks.
“We know we are the lowest-cost producer in the world ... I’m sure Aramco will be attractive.”
Nasser said healthy global demand combined with OPEC supply cuts should help oil markets achieve a balance of supply and demand and lead to a reduction in oil stocks to a five-year average by the end of the year.
He also said he was not concerned by rising US oil exports though the Saudi market share in some core markets was declining.
“We have a good share in each market. We don’t have an issue in terms of market share. Our long-term sales agreements work well.”
Aramco seeks to expand in US, says Trump is pro-oil
Aramco seeks to expand in US, says Trump is pro-oil
PIF Private Sector Forum sees multiple deals across key sectors
RIYADH: The first day of the PIF Private Sector Forum marked the signing of several agreements spanning travel, entertainment, advanced manufacturing, innovation, urban development, and industrial sectors.
In the tourism, travel, and entertainment sector, a memorandum of understanding was signed between the Public Investment Fund’s Dan Co. and Fresh on Table to expand the latter’s platform in Saudi Arabia, enhance cooperation, and establish consolidation centers in Dan Co.’s facilities across targeted cities.
Dan Co. also signed an MoU with DRB Arabia to collaborate on the development of the Tuaja Resort Community Center in Al-Ahsa, establishing a framework for cooperation between the two parties.
King Abdullah Economic City and Almosafer Travel and Tourism Co. agreed to a joint venture to support tourism promotion and destination marketing.
Cruise Saudi and FlyAkeed signed an MoU to strengthen initiatives in travel optimization and digital innovation, while FlyAkeed also partnered with Al-Ula Club to explore opportunities in automation and digital transformation. Additionally, the PIF and FlyAkeed signed an MoU to advance digital travel solutions and enhance service delivery leveraging FlyAkeed’s capabilities.
In urban development and livability, the PIF signed an MoU with ABB Academy to develop the Saudi workforce through targeted training programs. Another agreement with Saudi Tabreed will explore expanding high-quality district cooling solutions for large-scale developments, aligning with national sustainability goals. Fraunhofer IAO will collaborate with the PIF on waste management and innovative construction methods to support smart city development.
The industrial and logistics sector also saw multiple agreements. Nupco signed an MoU with Saudi Awwal Bank to strengthen healthcare supply chains, while Saudi Arabia Railways partnered with Siemens Mobility to localize manufacturing, develop the Kingdom’s rail infrastructure, and advance industrial capabilities. The Royal Commission of AlUla signed a deal with TASAMA to support its operational and strategic objectives.
In advanced manufacturing and innovation, Tasaru Mobility Investments signed multiple agreements with Masarat Mobility Park, Shin Young, JVIS, Benteler, Lear Corp., and Fangxin. Electric vehicle maker Lucid also inked deals with Benteler, JVIS, Shin Young, and Lear Corp.
Saudi Arabia’s first homegrown EV brand, Ceer, signed agreements with Mino, Natpet Schulman Specialty Plastic Compounds, Xinyi Glass, MK Tron, Sika, Saudi Controls, AVL, FEV, Zamil Trade and Services, Zamil Plastics, and Arabian Plastic Industrial Co. CEO James DeLuca highlighted that Ceer is set to sign 16 agreements valued at SR3.7 billion ($990 million) at the forum, noting that 90% of these are commercial contracts rather than MoUs.
