Mubasher: Saudi Arabia will use the proceeds from Saudi Aramco’s initial public offering (IPO) to support the local economy over several years, finance minister Mohammed al-Jadaan told Reuters on Tuesday.
The Public Investment Fund (PIF) received $30 billion from Aramco’s local share offering, which will be used to boost the capital of local industries, including defence and technology, Jadaan revealed.
“We work with our military industry to develop our own military assets in the mid-term to deal with these risks, including investment by PIF,” Jadaan said.
The minister expected recovery in oil prices in 2020 on the back of solid demand, reduced output, and easing trade tensions.
Saudi Arabia’s deficit in 2020 is projected to be well below the $50 billion figure announced in December 2019, he added.