Saudi Aramco signals fresh momentum behind IPO plans

2019 ◽  
Keyword(s):  
Fossil Fuels ◽  
Public Investment ◽  
Investment Fund ◽  
Minority Shareholders ◽  
Content Type ◽  
The Public ◽  
Original Plan ◽  
Dominant State ◽  
Market Capitalisation

Significance Reports last month that Aramco had selected Lazard for a contract to work as adviser on the IPO breathed new life into a deal that has been marking time since mid-2018. Prospective investors have also been encouraged by Aramco’s recent announcement of interim results, marking a further development in public disclosure following the successful 12-billion-dollar bond issue in April. The original plan was to offer a 5% stake to generate 100 billion dollars for the Public Investment Fund (PIF), based on a 2-trillion-dollar valuation. Impacts The new advisory team may recommend modifying the planned IPO terms, especially given Aramco’s acquisition of 70% of SABIC. The IPO will give Aramco an opportunity to elaborate further its long-term strategy to adapt to the global shift away from fossil fuels. A listing of Aramco’s shares would boost Saudi market capitalisation and attract additional investment inflows. The interests of new minority shareholders and the dominant state shareholder could diverge, including over dividend policy.

Successful Aramco sale may squeeze Saudi finances

2019 ◽  
Keyword(s):  
Initial Public Offering ◽  
Public Investment ◽  
Investment Fund ◽  
Economic Diversification ◽  
Content Type ◽  
The Public ◽  
Price Range ◽  
High Valuation ◽  
Crown Prince ◽  
Public Offering

Significance The initial public offering (IPO) of a 1.5% stake in Saudi Aramco on December 6 reached the top end of the recommended price range, giving the company a relatively high valuation of 1.7 trillion dollars and netting a record 25.6 billion dollars for the Public Investment Fund (PIF) -- a vindication for Crown Prince Mohammed bin Salman. The shares were sold mainly to Saudi and regional investors. Impacts The PIF will deploy sale proceeds as part of a drive for economic diversification, both domestically and in acquiring global assets. Aramco’s commitment to generous dividends could pose problems if oil prices weaken. PIF spending of the domestic sale proceeds will lead to a foreign exchange outflow, either directly or through new imports.

Saudi Aramco-SABIC merger will raise strategy concerns

2019 ◽  
Keyword(s):  
Natural Gas ◽  
Public Investment ◽  
Balance Sheet ◽  
Oil Prices ◽  
Investment Fund ◽  
Content Type ◽  
The Public ◽  
Saudi Aramco ◽  
International Profile ◽  
A Share

Significance This will be used to meet part of the costs of acquiring a controlling stake in Saudi Basic Industries Corporation (SABIC), the kingdom’s principal petrochemical producer. Aramco is also looking to expand its oil marketing business and invest heavily in natural gas. Impacts The deal, and trading and gas plans, will raise Aramco’s international profile, increasing its valuation if a share offering proceeds. There is a risk that the SABIC acquisition could impair both companies’ performance and create tensions among technocrats. The proceeds of the sale will boost the Public Investment Fund (PIF) coffers. The extra debt on Aramco’s balance sheet may become burdensome if oil prices fall.

Riyadh will liquidate assets faster than Gulf peers

2017 ◽  
Keyword(s):  
Public Investment ◽  
Oil Prices ◽  
Investment Fund ◽  
Sovereign Wealth Funds ◽  
Content Type ◽  
International Partnerships ◽  
Asset Classes ◽  
The Impact ◽  
Asset Managers

Subject Prospects for Gulf Arab sovereign wealth funds. Significance Lower oil prices since 2014 have hit Gulf Cooperation Council (GCC) sovereign wealth funds (SWFs) to different degrees. The impact in Saudi Arabia has been especially marked. All the funds, however, face the challenge of retaining or increasing the returns and liquidity of their assets and professionalising their management. Impacts Gulf SWFs will witness a long-term decline in importance relative to non-commodity SWFs in Asia. Saudi Arabia’s Public Investment Fund (PIF) could buck the trend of increasingly professionalised management. Diversification into new asset classes will open new opportunities for international partnerships. Foreign asset managers pitching for business in the Gulf will have to present higher-quality proposals as SWFs become more selective.

Using system dynamics to evaluate renewable electricity development in Malaysia

Kybernetes ◽  
2014 ◽  
Vol 43 (1) ◽  
pp. 24-39 ◽  
Author(s):  
Salman Ahmad ◽  
Razman bin Mat Tahar
Keyword(s):  
System Dynamics ◽  
Fossil Fuels ◽  
Systems Approach ◽  
Capacity Expansion ◽  
Assessment Model ◽  
Flow Diagram ◽  
Content Type ◽  
The Government ◽  
Policy Targets

Purpose – The purpose of this paper is to provide an assessment of Malaysia's renewable capacity target. Malaysia relies heavily on fossil fuels for electricity generation. To diversify the fuel-mix, a technology-specific target has been set by the government in 2010. Considering the complexity in generation expansion, there is a dire need for an assessment model that can evaluate policy in a feedback fashion. The study also aims to expand policy evaluation literature in electricity domain by taking a dynamic systems approach. Design/methodology/approach – System dynamics modelling and simulation approach is used in this study. The model variables, selected from literature, are constituted into casual loop diagram. Later, a stock and flow diagram is developed by integrating planning, construction, operation, and decision making sub-models. The dynamic interactions between the sub-sectors are analysed based on the short-, medium- and long-term policy targets. Findings – Annual capacity constructions fail to achieve short-, medium- and long-term targets. However, the difference in operational capacity and medium- and long-term target are small. In terms of technology, solar photovoltaic (PV) attains the highest level of capacity followed by biomass. Research limitations/implications – While financial calculations are crucial for capacity expansion decisions, currently they are not being modelled; this study primarily focuses on system delays and exogenous components only. Practical implications – A useful model that offers regulators and investors insights on system characteristics and policy targets simultaneously. Originality/value – This paper provides a model for evaluating policy for renewable capacity expansion development in a dynamic context, for Malaysia.

scholarly journals The woes of Swedish private archival institutions

2017 ◽  
Vol 27 (3) ◽  
pp. 275-285 ◽  
Author(s):  
Proscovia Svärd
Keyword(s):  
Systematic Investigation ◽  
Digital Information ◽  
National Narrative ◽  
Digital Repository ◽  
Content Type ◽  
The Public ◽  
Active Involvement ◽  
Organization And Management ◽  
Long Term Preservation

Purpose The purpose of this paper is to highlight the long-term preservation challenges that the Swedish private archives are faced with. In as much as they offer a complement to the public archives and hence offer a nuanced national narrative, they lack both financial and human resources to effectively deal with the digital information management environment. Design/methodology/approach Participatory Action Research (PAR) was used to identify the challenges of long-term preservation together with the six private archives institutions that were involved in the collaboration. The collaboration was financially facilitated by the Södertörn University. PAR is defined as a systematic investigation, with the collaboration of those affected by the issue being studied, for the purposes of education and taking action or effecting social change. What is distinctive of PAR is the active involvement of people whose lives are affected by the phenomenon under study. Findings The private archival institutions face long-term preservation challenges such as lack of a digital repository that would facilitate the capture, organization and management of digital records that are of different formats and in a dispersed environment. There are no stringent legal requirements to facilitate the creation and management of the records in a standardized way and the institutions fear that imposing such requirements might deter their clients from depositing archival materials with them. The institutions will also need to espouse the business-oriented archival descriptions where private organizations are concerned to identify relevant archival materials and to promote participatory archival descriptions that would allow the creators to tag their records with metadata. Digital information requires a proactive approach, that is, planning for the long-term preservation of the information before it is created. Private archives need to invest in education packages that will facilitate their clientele’s understanding of the challenges of digital long-term preservation. Research limitations/implications The findings cannot be generalized to all private archival institutions, as it was only six institutions that participated, but the issues discussed are relevant to most archival institutions. Practical implications A lot of research has been carried out in the area of long-term preservation, but researchers have not paid enough attention to the woes of the private archives. To sustain a nuanced national narrative, the private archives need all the support to be able to live up to their mission of preserving archives of the private sector that are not captured by the public archival institutions. This is important in a pluralistic society such as Sweden. Highlighting the challenges might enable the institutions to work towards finding common challenges. Social implications The private archives are part of Sweden’s national heritage. Their preservation matters to the society as a whole and to enhancing the voices of the underrepresented. Originality/value The literature review revealed that not much research has paid attention to the challenges being faced by the private archives. This paper, therefore, contributes to this knowledge gap.

Afghan aid flows will resume, bypassing the Taliban

2021 ◽  
Keyword(s):  
Public Sector ◽  
Healthcare Workers ◽  
Economic Impacts ◽  
Female Employment ◽  
Service Members ◽  
Content Type ◽  
The Public ◽  
Security Service ◽  
Wage Payment

Significance The Taliban government has allowed UN agencies to start paying salaries directly to teachers and healthcare workers. It initially stalled on this, but has now conceded for fear of losing legitimacy if it fails to address the looming crisis. Impacts Western concerns about reprisal killings of former security service members will further complicate relations with the Taliban. The public-sector wage payment scheme established by UN agencies may become the norm for many years. Taliban restrictions on female employment will have long-term economic impacts but will fall down the list of Western priority concerns.

LNG use will be crucial to nations’ energy transitions

2021 ◽  
Keyword(s):  
Fossil Fuels ◽  
Fossil Fuel ◽  
Developing Economies ◽  
Ghg Emissions ◽  
Energy Transition ◽  
Market Volatility ◽  
Content Type ◽  
Market Growth ◽  
Net Zero

Significance LNG is cleaner than most fossil fuels but still incompatible with net zero emissions. India, China and other Asian economies see LNG imports as a ready and economically viable means of displacing coal and oil use. Natural gas and then LNG demand will eventually peak as the energy transition accelerates over the next 20 years. Impacts LNG market growth will embed fossil fuel use and infrastructure in developing economies’ energy mixes. Recent market volatility and record spot LNG prices may reverse the trend of greater reliance on spot transactions than long-term contracts. Although the greenhouse gas (GHG) benefits of LNG use in transport are far from clear, it will gain market share in the next few years. LNG project developers will seek to cut GHG emissions from their projects to prolong LNG's attractiveness in the energy transition.

Accounting for gaming in the time of plague: COVID-19 in Macau

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carlos Noronha ◽  
Jieqi Guan ◽  
Sandy Hou In Sio
Keyword(s):  
Critical Event ◽  
Gaming Industry ◽  
Content Type ◽  
The Public ◽  
The Social ◽  
Social Account ◽  
The Government ◽  
The Impact ◽  
Practical Implications

Purpose While the COVID-19 virus has been spreading worldwide, some studies have related the pandemic with various aspects of accounting and therefore emphasized the importance of accounting research in understanding the impact of COVID-19 on society as a whole. Recent studies have looked into such an impact on various industries such as retail and agriculture. The current study aims at applying a sociological framework, sociology of worth (SOW), to the gaming industry in Macau, the largest operator of state-allowed gambling and entertainment in China, which will allow for its development during the COVID-19 pandemic to be charted. Design/methodology/approach The study uses the theory of SOW as a framework and collects data from various sources, such as the government, gaming operators and the public, to create timelines and SOW frameworks to analyze the impact of the virus on the gaming industry and the society as a whole. Findings Detailed content analysis and the creation of different SOW matrices determined that the notion of a “lonely economy” during a time of a critical event may be ameliorated in the long term through compromises of the different worlds and actors of the SOW. Practical implications Though largely theory-based, this study offers a thorough account of the COVID-19 incident for both the government and the gaming industry to reflect on and to consider new ways to fight against degrowth caused by disasters or crises. Social implications The SOW framework divides society into different worlds of different worths. The current study shows how the worths of the different worlds are congruent during normal periods, and how cracks appear between them when a sudden crisis, such as COVID-19, occurs. The article serves as a social account of how these cracks are formed and how could they be resolved through compromise and reconstruction. Originality/value This study is a first attempt to apply SOW to a controversial industry (gaming) while the effects of the COVID-19 pandemic are ongoing. It offers a significant contribution to the social accounting literature through its consideration of the combination of unprecedented factors in a well-timed study that pays close attention to analyses and theoretical elaboration.

Mexico power centralisation will bring heavy criticism

2019 ◽  
Keyword(s):  
Public Sector ◽  
Central Government ◽  
State Governments ◽  
Public Servants ◽  
Content Type ◽  
The Public ◽  
State Capture

Subject Balance of powers in Mexico. Significance Since taking office last year, President Andres Manuel Lopez Obrador (AMLO) and his National Renovation Movement (Morena) have taken several measures to make savings in the public sector and to allocate resources to tackling poverty and corruption. Such goals enjoy widespread support, but some of the mechanisms employed to achieve them are concentrating power with the central government. The areas most affected include constitutionally autonomous entities within the administration, other branches of government such as the judiciary, and state governments. Impacts Given the role of poorly paid public servants in state capture, salary cuts may prove counterproductive in fighting corruption. Without a system that impartially investigates, prosecutes and sanctions wrongdoing by public servants, corruption will not abate. Centralisation will strengthen the administration initially but leave it vulnerable in the long term when things do not work as intended.

Greek GDP will plunge despite latest stimulus package

2020 ◽  
Keyword(s):  
Economic Policy ◽  
Budget Deficit ◽  
Public Investment ◽  
Military Spending ◽  
Arms Race ◽  
Content Type ◽  
The Public ◽  
Defence Expenditure ◽  
National Defence ◽  
Stimulus Package

Significance The speech set out the government’s economic policy guidelines for the remainder of 2020 and 2021, largely extending the package of fiscal measures in place since April 2020. Mitsotakis also announced the start of a new investment cycle in national defence, in response to rapidly deteriorating relations with Turkey. Impacts The latest stimulus package will widen the 2020 primary budget deficit to about 3.5% of GDP. The announced increase in military spending is fuelling fears among the public of an arms race with Turkey. The rise in defence expenditure will divert public investment into economically unproductive ends.

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