Mubasher: Saudi Aramco is looking to expand in the United States, according to CEO Amin Nasser.
The recent tax cuts and support for oil industry by the administration of President Donald Trump are encouraging the Saudi giant to seek more investments in the US, Nasser told Reuters in an interview on Wednesday.
“We are looking at new business opportunities in the US and with the tax cuts it will make it much more profitable. It is part of our strategy to grow our business in the US,” said the CEO.
“The Trump administration has been positive towards the energy industry. As long as what they are doing is in the interest of all and the U.S. economy is growing, we are happy,” Nasser added in the interview which was conducted on the sidelines of the World Economic Forum in Davos.
“The whole oil industry is benefiting from the current administration.”
When asked about the shortlisted stock markets for the highly anticipated initial public offering (IPO), Nasser said that “There are pros and cons for every exchange. It needs to be well analyzed.”
“Of course, the New York stock exchange is the best in terms of liquidity. But it is not just the question of liquidity. It is also about other rules and regulations and the ease of doing business in these markets,” he explained.
New York, London, and Hong Kong, were shortlisted for a single or double listing of the biggest oil company in the globe.
The fierce competition has led the New York Stock Exchange (NYSE) to say that it will not change the rules to win the IPO, in what was considered to be a swipe at the London Stock Exchange (LSE).
London hopes that the oil giant’s IPO will boost the city’s status as a global financial hub, according to Reuters.
This comes at a time as the United Kingdom is preparing to leave the European Union, which could affect global confidence in the British market.
The Saudi Arabian Oil Company could raise up to $100 billion by selling 5% of its shares, as part of the efforts by the kingdom’s government to diversify the economy.
Aramco’s CEO also stressed the need to maintain expansions, saying “We have a good share in each market. We don’t have an issue in terms of market share. Our long-term sales agreements work well.”
“Diversification is key. We need to identify other sectors rather than relying on oil and gas. Privatization is also key as you can improve the quality of service. Regulatory frameworks are also changing big time. We are working on easing the climate for business,” he further added.
It is worth noting that Aramco already controls a large refinery in Texas.
