Saudi Aramco considers asset sales to free up funds, sources say
Image: Getty Images
Saudi state oil giant
Aramco is the world's largest oil-producing company and the main source of Saudi state revenue. The firm will slash dividend payouts by nearly a third this year as lower oil prices hit its income.
The company has asked investment bankers to pitch ideas for how to raise funds from its assets, the people said.
They declined to say which assets could be sold or name the banks involved.
Aramco declined to comment.
Aramco is looking to improve efficiency and cut costs, according to two other people with knowledge of the matter, and an option under consideration would be asset sales, one of them said. The four sources declined to be named because they are not authorised to speak to media.
Aramco is the engine of the Saudi economy and its sprawling business includes units for aviation, construction and sports. It has retained majority stakes during previous asset sales such as its deals around its pipeline infrastructure.
The Saudi government is putting pressure on its industries to improve profitability amid low crude prices and as it spends its hydrocarbon wealth on new sectors to cut reliance on oil.
The kingdom faces a widening budget deficit with the International Monetary Fund saying Riyadh needs a price of oil of over $90 per barrel to balance its books compared to prices of around $60 per barrel in recent weeks.
Aramco has in recent years made a push to grow its global footprint, including investing in Chinese refineries, Chilean fuel retailer Esmax and US -headquartered LNG firm MidOcean.
The Saudi company said last week it signed 34 preliminary deals potentially worth up to $90 billion with US firms following President Donald Trump's visit to the kingdom.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
2 hours ago
- The National
UAE midday break for workers starts
The UAE's midday break for outdoor workers came into effect on Sunday. The break runs until September 15 and prohibits work under direct sunlight and in open-air spaces between 12.30pm and 3pm. The annual initiative, overseen by the ministry of Human Resources and Emiratisation, was first introduced in 2004 and gives employees respite from the scorching summer heat. Companies will be fined Dh5,000 for each time a worker breaches the midday ban and up to a maximum of Dh50,000 if several cases take place. The safety measures came back into force after the UAE has seen climate records tumble. The country has recorded its hottest April and May since records began. 'Now in its 21st consecutive year, the Midday Break is rooted in a sustainability-centred approach that the UAE implements in line with its commitment to providing a safe working environment as per international best practices and occupational health and safety standards, protecting workers from injuries and illnesses caused by working in high temperatures during the summer months,' the ministry said on social media. The ministry will be inspecting workplaces across the country over the next few months to monitor implementation of rule. The ministry said 51 infractions were uncovered last year as a result of 134,000 inspections, down from 96 the previous year.
Khaleej Times
4 hours ago
- Khaleej Times
Non-oil sector propels UAE's GDP to nearly Dh1.8 trillion in 2024
The UAE's economy registered a growth of 4.0 per cent in real gross domestic product (GDP) in 2024, reaching Dh1.776 trillion, underscoring the resilience and dynamism of the country's non-oil sectors in the face of a challenging global environment. According to official data released by the Federal Competitiveness and Statistics Centre (FCSC) on Sunday, non-oil activities contributed an impressive 75.5 per cent to the national economy, amounting to Dh1.342 trillion, while oil-related GDP stood at Dh434 billion. The upbeat data has reinforced confidence in the UAE's long-term economic trajectory, driven by structural reforms, increased investment in non-oil sectors, and strategic initiatives under the 'We the UAE 2031' vision. The Ministry of Economy described the growth as a testament to the country's effective economic diversification strategy and its transformation into a knowledge- and innovation-driven economy. Minister of Economy Abdulla bin Touq Al Marri said the performance reflects the UAE's determination to build a sustainable, globally competitive economy. 'Each milestone brings us closer to our national goal of raising the GDP to Dh3 trillion by the next decade,' said Al Marri. 'We are committed to positioning the UAE as a global hub for the new economy by reinforcing sustainable development, leveraging emerging technologies, and enhancing international competitiveness.' Hanan Mansour Ahli, managing director of the FCSC, noted that the 4.0 per cent GDP growth 'mirrors the UAE's strategic foresight and focus on sustainable, non-oil-driven growth,' with diversified economic activity enhancing social well-being and national resilience. Among the fastest-growing contributors to GDP in 2024 was the transport and storage sector, which recorded a remarkable 9.6 per cent year-on-year growth, powered by a strong rebound in aviation and logistics. UAE airports handled a total of 147.8 million passengers during the year, a 10 per cent increase from 2023, reflecting the country's recovery as a global travel and logistics hub. The construction and real estate sectors also continued their upward momentum. The building and construction sector posted an 8.4 per cent increase, buoyed by robust infrastructure development across urban centres, while real estate activities grew by 4.8 per cent amid rising demand for residential and commercial properties. Financial and insurance services expanded by 7.0 per cent, reflecting strong capital inflows and healthy banking sector performance. The hospitality and food services sector grew by 5.7 per cent, supported by a surge in tourist arrivals and high hotel occupancy levels throughout 2024. In terms of sectoral contributions to the non-oil GDP, wholesale and retail trade led the way with a 16.8 per cent share, followed by manufacturing (13.5 per cent), financial and insurance activities (13.2 per cent), construction (11.7 per cent), and real estate (7.8 per cent). These indicators collectively signal a broad-based expansion across key pillars of the non-oil economy. The International Monetary Fund (IMF) echoed the optimism in its latest regional economic outlook, projecting that the UAE will maintain strong medium-term growth thanks to its effective policy mix and strategic diversification plans. The IMF said the UAE's fiscal and monetary policies, alongside targeted reforms in labour markets, green energy, and digital transformation, would underpin continued economic stability and competitiveness. The Central Bank of the UAE, in its most recent economic review, reaffirmed its growth forecast for 2024, noting that the non-oil sector remains the main engine of economic momentum. The apex bank said it expects the non-oil economy to grow by around 5.4 per cent in 2025, supported by steady domestic demand, robust trade activity, and rising levels of foreign direct investment (FDI). Analysts also highlight that the UAE's proactive steps toward climate resilience and hosting of global events such as COP28 have elevated its stature as a responsible economic player, further accelerating investment in green technologies, logistics, advanced manufacturing, and tourism infrastructure. Analysts added that as global headwinds from inflationary pressures and geopolitical uncertainties persist, the UAE's diversified economic model and prudent policy framework appear well-positioned to deliver sustainable growth and opportunity across sectors. With its ambitious vision to double the size of the economy by 2031, the UAE is increasingly seen as a model of modernisation and economic agility in the Arab Gulf region, they noted.
Arabian Business
6 hours ago
- Arabian Business
UAE airline flight cancellations extended: Emirates, Etihad, flydubai, Air Arabia announce MORE suspensions
UAE airlines have extended flight suspensions to and from destinations around the region as tensions between Israel and Iran escalate. See the latest breaking travel updates from Emirates, Etihad Airways, flydubai and and Wizz Air Abu Dhabi. The suspensions, delays and cancellations are impacting regional transport hubs with airports and airlines across the GCC announcing updates. Emirates suspends some UAE flights In a statement, Emirates said: 'Due to the regional situation, Emirates has temporarily suspended all flights to: Jordan (Amman) and Lebanon (Beirut), until and including Sunday, June 22 Iran (Tehran) and Iraq (Baghdad and Basra), until and including Monday, June 30 'Customers connecting through Dubai with final destinations in Iraq, Iran, Jordan, Lebanon; and customers with onwards flydubai connections to suspended destinations will not be accepted for travel at their point of origin until further notice'. The airline added that customers impacted by flight cancellations should contact their travel agency for rebooking. Customers departing or arriving at Dubai International Airport were advised to check their flight status on for the latest information. Emirates said: 'We apologise for any inconvenience caused to our customers. We continue to closely monitor developments. The safety of our passengers, employees and operations will always be our top priority'. Etihad suspends some UAE flights Etihad said it 'continues to experience disruption to several services due to airspace closures and the ongoing regional situation'. In a statement, Etihad said: 'Flights between Abu Dhabi (AUH) and Tel Aviv, Israel (TLV) remain cancelled on June 15 and June 16. 'Flights between Abu Dhabi (AUH) and Amman, Jordan (AMM) EY 591/592, and between Abu Dhabi (AUH) and Beirut, Lebanon (BEY) EY 581/582, will resume on June 15 with a revised flight schedule for guests with existing bookings only at this stage. 'Additionally, Etihad continues to re-route several flights in response to restricted airspace in parts of the Middle East. Etihad is closely monitoring airspace and security updates in coordination with the relevant authorities'. Etihad further added that guests transiting through Abu Dhabi to connect to cancelled flights will not be accepted for travel from their point of origin. The national carrier said: 'This remains a developing situation, and some disruption and delays may be expected in the coming days. Impacted guests are being assisted with alternative travel arrangements. 'The safety of our guests and crew remains our highest priority, and we regret any inconvenience caused'. flydubai suspends some UAE flights Significant disruption and ongoing suspensions to UAE flights were also announced by flydubai. Due to the current situation and the closure of certain airspace corridors, flydubai temporarily suspended flights to and from the following countries and airports: Until June 16: Jordan, Lebanon, Syria Until June 17: Minsk, St. Petersburg Until June 20: Iran, Iraq, Israel In a statement, flydubai said: 'Passengers connecting through Dubai with final destinations in any of the above countries or airports will not be accepted for travel at their point of origin until further notice. 'Passengers affected by these cancellations are advised to check rebooking options via Manage Booking on our website or contact their travel agent. We also request all passengers to ensure their contact details are up to date via Manage Booking on our website to receive timely notifications. 'Passengers departing from or arriving at Dubai International Airport (DXB) are encouraged to check their flight status on for the latest updates. Please note that some other flights may be subject to delays or rerouting. 'We apologise for the inconvenience caused and appreciate your understanding. flydubai continues to monitor the situation closely, with the safety of our passengers, crew, and operations remaining our highest priority' Air Arabia suspends some UAE flights Air Arabia said that the following UAE flights were cancelled on June 15: Flight No. Origin Destination G9203 Sharjah Tehran G9205 Sharjah Mashad G9213 Sharjah Shiraz G9805 / G9806 Sharjah Moscow G9960 Sharjah Yekaterinburg G9922 Sharjah Samara G9357 Sharjah Erbil G9368 Sharjah Baghdad G9373 Sharjah Najaf G9833 Sharjah Basra G9330 / G9331 Sharjah Amman G9387 / G9388 Sharjah Beirut G9244 Sharjah Yerevan G9296 Sharjah Tbilisi G9300 / G9301 Sharjah Baku G9830 Ras Al Khaimah Moscow 3L750 Abu Dhabi Moscow 3L441 Abu Dhabi Yerevan 3L714 Abu Dhabi Tbilisi 3L730 Abu Dhabi Baku G9204 Tehran Sharjah G9206 Mashad Sharjah G9214 Shiraz Sharjah G9956 / G9957 Moscow Sharjah G9831 Moscow Ras Al Khaimah 3L751 Moscow Abu Dhabi G9961 Yekaterinburg Sharjah G9923 Samara Sharjah G9358 Erbil Sharjah G9369 Baghdad Sharjah G9374 Najaf Sharjah G9834 Basra Sharjah G91074 / G91075 Amman Sharjah G9408 / G9409 Beirut Sharjah G9245 Yerevan Sharjah 3L442 Yerevan Abu Dhabi G9297 Tbilisi Sharjah 3L715 Tbilisi Abu Dhabi G9305 / G9306 Baku Sharjah 3L731 Baku Abu Dhabi Meanwhile, airports in the UAE also advised passengers to expect further travel disruption. Dubai Airports said: 'Some flights at DXB and DWC are cancelled or delayed due to airspace closures over parts of the region', and airlines across the UAE gave details of major disruption to scheduled flights'. Abu Dhabi's Zayed International Airport said: 'Due to ongoing airspace closures, flight disruptions at Zayed International Airport – including delays and cancellations – are expected to continue on Sunday, June 15 and Monday, June 16. 'Passengers are advised to check with their airlines for the latest travel information before heading to the airport. We appreciate your patience and understanding'.
