Saudi crown prince Mohammad Bin Salman faces a major blow

Saudi crown prince Mohammad Bin Salman faces a major blow
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DUBAI - Saudi crown Prince Mohammad Bin Salman faces a setback over shelving the biggest ever share sale in the history of Saudi Arabia .

Saudi Arabia’s decision to shelve the biggest share sale ever is a major blow to the credibility of Crown Prince Mohammed bin Salman.

The initial public offering (IPO) of 5 per cent of state-owned oil giant Saudi Aramco was a centrepiece of the crown prince’s plan to diversify the kingdom’s economy beyond oil by raising $100 billion for investment in other sectors.

The 32-year-old ruler, widely known as MbS, also promised that listing Saudi Aramco on international stock markets would help create a culture of openness in the secretive kingdom and make it more appealing to foreign investors.

The decision to shelve the IPO raises doubts about the management of the process as well as the broader reform agenda, sapping the momentum generated by Prince Mohammed’s dramatic 2030 Vision announcement in 2016 that helped propel him to power in the world’s top oil exporter.

Middle East