Steps taken by national oil giant Saudi Aramco to consolidate some of its downstream assets, most notably in the US market, appear to be laying the groundwork for an initial public offering (IPO) and a move towards becoming the global leader in refining.
Plans for the privatisation of Saudi Arabia’s airports and aviation services are advancing, with the state aiming for full private sector ownership by 2020.
A continued scaling back on energy, feedstock and utilities subsidies is likely to impact earnings in Saudi Arabia’s industrial sector, potentially reducing its long-held competitive edge.
Falling oil revenues and an expanding budget deficit were the hallmarks of Saudi Arabia’s economic activity in 2015, as heavy investment in development projects widened the Kingdom’s spending gap.
New regulations are set to expand international investor access to Saudi Arabia next year, when a landmark move allowing full foreign ownership of key retail and wholesale businesses takes effect.
While falling oil revenues have prompted plans to scale back or reschedule some of Saudi Arabia’s programmes, the government has signalled that health projects will remain largely protected.
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