LONDON — Saudi Aramco will set strict business criteria
for ventures it backs under a new private partnership initiative to help
diversify the kingdom's oil-reliant economy and was not being pushed into
projects by the state, the CEO said.
اضافة اعلان
His comments in an interview on Wednesday came a day
after Saudi Crown Prince Mohammed Bin Salman announced the new Shareek
(Partner) initiative, in which the state-controlled oil giant and petrochemical
firm SABIC would lead private sector investments worth 5 trillion riyals ($1.3
trillion) by 2030.
The new program is part of efforts to mobilize private
investment in the world's biggest oil exporter, helping the kingdom diversify
away from crude sales that still generate more than half the state's income.
"You can look at Shareek as a catalyst in making Saudi
Arabia even more compelling as an investment destination for both local and
foreign investors," Aramco Chief Executive Amin Nasser told Reuters.
The government has not spelled out how the program will
work in detail, but Nasser said private companies would seek incentives from
the government — whether infrastructure, fiscal, or regulatory support — and
Aramco would determine whether to back a project as a partner.
"This is a voluntary program. It's on the private
sector to bring these projects, to ask for incentives," he said.
He promised Aramco's shareholders, who include a
minority of private investors since the company began trading on the stock
exchange in December 2019, that the firm would set prudent capital allocation
and cost criteria.
The new program has raised some investor concerns that
Aramco might start building stadiums or launch other infrastructure projects
unrelated to its energy business, mirroring its activities in earlier years of
Saudi’s oil boom.
But Nasser said the government, which still owns 98
percent of the company since its initial public offering, was not pushing
Aramco to take part in specific projects.
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