The Saudi Aramco deal will be the largest flotation in history but the oil giant is expected to seek a listing on its domestic exchange, the Tadawul, initially

Hopes that London could win the listing of Saudi Arabia’s state-owned oil company look likely to be dashed, with the Gulf kingdom expected to opt for a purely domestic share sale.

Mohammed bin Salman, Saudi Arabia’s crown prince, is reported to be concerned at the legal difficulties of listing Saudi Aramco in New York, while the rise in the oil price since the idea of the privatisation was first floated two years ago has reduced the urgency of raising money to fill the government’s coffers.

Officials close to the deal, which at more than £1 trillion would be the largest flotation in market history, told The Wall Street Journal that the Saudi authorities had scaled back their plans despite intense lobbying by London, New York