Latest news with #SaudiAramco
Arabian Post
10 hours ago
- Business
- Arabian Post
Aramco Eyes Islamic Debt Market Amid Fiscal Pressures
Saudi Aramco has filed a new prospectus for an Islamic bond issuance programme, indicating a potential return to the debt markets following a $5 billion conventional bond sale earlier this week. The prospectus, dated 30 May, was submitted to the London Stock Exchange, where the sukuk would be listed. Under its terms, Aramco has a year to issue the Islamic bonds. This move comes as the company navigates economic uncertainties and increased oil supply, which have impacted crude markets and reduced the oil exporter's profits. In March, Aramco announced plans to reduce its dividend by nearly a third due to declining profits and free cash flow. The Saudi government relies heavily on revenue from Aramco, including dividends, royalties, and taxes. Last year, oil accounted for 62% of state revenue. The International Monetary Fund estimates that Saudi Arabia requires oil prices above $90 per barrel to balance its budget, while Brent crude is currently trading around $64.40.
Leaders
a day ago
- Business
- Leaders
Saudi Arabia: The Next Silicon Valley of the Middle East
Saudi Arabia is rapidly positioning itself as the Middle East's Silicon Valley, with a $40 billion AI investment push, aiming to transform the country into a competitive innovation hub. Consequently, it is attracting a large-scale influx of global talent as the Saudi government is partnering directly with global leaders in new-age tech to form the bedrock for local innovation. Institutional alignment, sovereign capital, and regulatory clarity make the country an execution-first environment for AI and Web3 startups. The Kingdom is making strategic moves to build its own AI infrastructure through sovereign initiatives like HUMAIN which ensure data sovereignty, strategic control, and scalable impact. Moreover, they align with national values and priorities, serving as a template for emerging economies. Experts believe this approach will help countries model their digital futures instead of outsourcing them. Johanna Cabildo, CEO of D-GN, noted, 'Saudi Arabia is building infrastructure, not just regulation.' When a government funds and deploys AI across ministries, oil giants, and smart cities, it creates demand signals, attracting private innovators, fostering a vibrant tech ecosystem. Cabildo cited Saudi Aramco's engagement with US-based droppGroup as a smart measure to power local innovation. Vision 2030: A Magnet for Global AI Builders Saudi Arabia's big AI push aligns with its 'Vision 2030,' turning the country into a magnet for global AI builders. Experts say Saudi Arabia is one of the few markets with both political will and economic scale to support the next wave of AI and Web3. The Saudi market is seeing a healthy combination of technological convergence and active support from local regulators. Jaspreet Bindra, Co-founder of AI&Beyond, praised the kingdom's future-facing approach. Cabildo emphasized that clear regulations and fast onboarding frameworks will attract founders and become a launchpad for global ventures. These ventures will focus on data sovereignty, digital identity, and decentralized intelligence. The Saudi Capital Market Authority has already issued over 80 tokenization licenses, signaling a push to innovate locally. Blockchain adds the transparency and ownership that AI needs, further enhancing the tech ecosystem. From Consumers to Producers of Innovation Saudi Arabia, along with countries like the UAE, is stepping out from being a consumer of innovation to becoming a global producer. This shift could turn the kingdom into the new center of gravity for AI, where capital, talent, and emerging technologies collide. Cabildo described Saudi Arabia's $40 billion AI push as more than an investment; it's a declaration of intent to build a unique ecosystem. Collaborations such as Saudi Aramco's mega AI and blockchain deal with droppGroup are expected to significantly impact traditional sectors. In the energy sector, AI can revolutionize operations with predictive maintenance, saving billions by preventing outages. Moreover, in logistics, AI-driven systems will streamline supply chains, cutting delays at ports like Jeddah. In education, AI will personalize learning, equipping students for a digital economy. The real transformation will be in the workforce, with Vision 2030's Human Capability Development Programme shifting workers from routine tasks to knowledge-driven roles. Deals like the Aramco-droppGroup collaboration fuel this shift, creating demand for data scientists, AI engineers, and innovation managers. These roles are critical to a diversified economy. With such moves, Saudi Arabia aims to generate thousands of tech jobs by 2030, reducing oil dependency. Short link : Post Views: 13
Arab News
a day ago
- Business
- Arab News
Saudi Aramco could tap debt markets again after $5bn bond sale
DUBAI: Saudi Aramco has published a new prospectus for its issuance program of Islamic bonds or sukuk, signalling the state oil major may soon tap the debt markets again after it raised $5 billion from a three-part bond sale this week. The prospectus, submitted to the London Stock Exchange where the sukuk would be listed, is dated May 30. Aramco has a year to issue sukuk under its terms. Aramco earlier this week raised $5 billion from a sale of conventional bonds. The borrowing comes after economic uncertainty and rising supply hit crude markets, denting the top oil exporter's profits. 'Aramco is likely looking to take advantage of a window of relative market calm to issue debt again,' said Zeina Rizk, co-head of fixed income at Amwal Capital Partners. Aramco in March said it expected to slash its dividend this year by nearly a third as profits and free cash flow decline. Reuters reported last week that Aramco is exploring potential asset sales to free up funds as it pursues international expansion and weathers lower crude prices. Citi, HSBC and JPMorgan are the arrangers of the sukuk program and are joined as dealers by First Abu Dhabi Bank, Goldman Sachs, Morgan Stanley, SNB Capital and Standard Chartered.
Argaam
a day ago
- Business
- Argaam
Saudi Aramco prices 3-part bond sale at $5B: Report
Saudi Aramco priced its dollar-denominated three-part bonds at $5 billion and set their yield spread, Reuters reported, citing fixed income news service IFR. The Saudi oil giant priced its five-year debt sale at $1.5 billion with spread at 80 basis points (bps) over US Treasuries. The 10-year portion spread was set at 95 bps with a price of $1.25 billion, while its 30-year portion spread was set at 155 bps with a price of $2.25 billion, the report said. According to data available on Argaam, Saudi Aramco announced, on May 27, plans to issue international bonds under its US-denominated Global Medium Term Note Programme. The net proceeds from each bond issuance will be used by Saudi Aramco for general corporate purposes or any other purpose specified in the final terms for a series of bonds.
Argaam
a day ago
- Business
- Argaam
Aramco publishes new sukuk issuance prospectus
Saudi Aramco published a new prospectus for its sukuk issuance program, signaling the state oil major may soon tap the debt markets. The prospectus, submitted to the London Stock Exchange where the sukuk would be listed, is dated May 30, Reuters reported. Aramco has a year to issue sukuk under its terms. The oil giant priced its dollar-denominated three-part bonds at $5 billion and set their yield spread, according to Argaam data. The net proceeds from each bond issuance will be used by Saudi Aramco for general corporate purposes or any other purpose specified in the final terms for a series of bonds.
