Saudi Arabia’s vision to develop post-oil economy won’t only separate oil from water, but also Saudi from its sole dependency on the black gold. The Kingdom’s next move to IPO Aramco is once again coming to light.

Issuing bids for privatizing 5 per cent of Aramco, the realm said that it was valued at $2 trillion, however, moved away from listing after King Salman seized the plan last year. The deadline, which is now scheduled for 2020, still looks like an improbable task for the nation.



Will IPO Aramco Ever Happen?

From multiplying cuts and pushing the prices up, Saudi Arabia has used every possible strategy to put pressure and increase its revenue from oil. The IPO mechanism, however, still remains a big problem because oil prices are idling below $60 a barrel. Also, when the oil was trading at $70 or above, there was no scope that evaluation for 5 per cent would be near $2 trillion.

So, unless Aramco’s new bankers have a way of averting what could be the worst year for the oil market, the balance in the economy can shift negatively.

Having said that, Saudi Arabia isn’t alone and is far from having the worst numbers in the Energy Information Administration’s roundup of OPEC oil-export earnings, released Tuesday. As recorded last year, every member nation gained in per capita export, but even at surplus of around $1400 a head, the group average is half the level it was in 2008. Also, the predictions by EIA state the fall would continue, come next year.

From 2000 to 2008, most members saw peak-per capita income, especially in 2008, and also during the Arab springs in 2011, when prices mounted because of instability in the market. Now, with the estimates drawn, the figure shows that a revenue of $1,065 per head in 2020 will be pocketed by the nations, which again isn’t big enough to achieve the $2 trillion dream.

So, when Aramco finally gets listed, it would be interesting to find out how well is Saudi Arabia diverting from oil to achieve its vision 2030.