Saudi Arabia plans to set up a $2 trillion Public Investment Fund that will reduce the kingdom’s reliance on oil, Deputy Crown Prince Mohammed bin Salman said.
As part of that effort, Saudi Arabia will sell less than 5 percent of shares in Aramco and transform the oil giant into an industrial conglomerate. The initial public offering will happen as early as 2017 and no later than 2018. The aim is to “make investments the source of Saudi government revenue, not oil,” Prince Mohammed said. “What is left now is to diversify investments. So within 20 years, we will be an economy or state that doesn’t depend mainly on oil,” he added. Prince Mohammed said the Public Investment Fund is looking at “two opportunities outside Saudi Arabia” in the financial industry, the prince said, declining to name the possible acquisition targets. “Undoubtedly, it will be the largest fund on Earth,” he said. “This will happen as soon as Aramco goes public.” [Reuters, Bloomberg, FT, 4/1/2016]
Three Libyan oil ports that have been closed for over a year are set to reopen now that a unity government has arrived in Tripoli. “We are planning to reopen the ports. It’s under the control of the unity government now,” said Spokesman for the Petroleum Facilities Guard Ali al-Hassi. The Government of National Reconciliation confirmed on its Facebook page that the “guards [protecting] the installations had agreed to open ports and work immediately.” The reopening of the ports in Es Sider, Ras Lanuf and Zueitina raises hope that Libya can increase its oil exports. However a return to normal production may not be straightforward, as facilities at the ports have been damaged by fighting and attacks. [WSJ, 3/31/2016]
Egypt will ban rice exports starting on April 4 in an effort to preserve stocks for the local market and to combat rising prices, Trade Minister Tarek Kabil said Thursday. He said the ban aims to provide for the needs of the domestic market. Egypt lifted a previous ban on rice in October due to an expected surplus and imposed an export tariff. That decision is set to expire on April 3. “The ministry is coordinating with all the ministries and concerned entities to tighten and control all customs and borders to prevent rice smuggling in order to take deterrent measures against violators,” Kabil said. “The decision will positively contribute to the stability in rice prices for consumers.” [Reuters, DNE, 3/31/2016]
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Iraq’s March oil exports from south 3.286 million bpd | Reuters
Iraqi appeals court upholds $187 million Zain Iraq tax ruling | Reuters
Nominated Iraqi oil minister may facilitate deal with Kurds | Reuters
Saudi plans $2 trillion fund for post-oil era
Saudi Arabia plans to set up a $2 trillion Public Investment Fund that will reduce the kingdom’s reliance on oil, Deputy Crown Prince Mohammed bin Salman said. As part of that effort, Saudi Arabia will sell less than 5 percent of shares in Aramco and transform the oil giant into an industrial conglomerate. The initial public offering will happen as early as 2017 and no later than 2018. The aim is to “make investments the source of Saudi government revenue, not oil,” Prince Mohammed said. “What is left now is to diversify investments. So within 20 years, we will be an economy or state that doesn’t depend mainly on oil,” he added. Prince Mohammed said the Public Investment Fund is looking at “two opportunities outside Saudi Arabia” in the financial industry, the prince said, declining to name the possible acquisition targets. “Undoubtedly, it will be the largest fund on Earth,” he said. “This will happen as soon as Aramco goes public.” [Reuters, Bloomberg, FT, 4/1/2016]
Three Libya oil ports set to reopen
Three Libyan oil ports that have been closed for over a year are set to reopen now that a unity government has arrived in Tripoli. “We are planning to reopen the ports. It’s under the control of the unity government now,” said Spokesman for the Petroleum Facilities Guard Ali al-Hassi. The Government of National Reconciliation confirmed on its Facebook page that the “guards [protecting] the installations had agreed to open ports and work immediately.” The reopening of the ports in Es Sider, Ras Lanuf and Zueitina raises hope that Libya can increase its oil exports. However a return to normal production may not be straightforward, as facilities at the ports have been damaged by fighting and attacks. [WSJ, 3/31/2016]
Egypt to ban rice exports from April 4 amid shortages
Egypt will ban rice exports starting on April 4 in an effort to preserve stocks for the local market and to combat rising prices, Trade Minister Tarek Kabil said Thursday. He said the ban aims to provide for the needs of the domestic market. Egypt lifted a previous ban on rice in October due to an expected surplus and imposed an export tariff. That decision is set to expire on April 3. “The ministry is coordinating with all the ministries and concerned entities to tighten and control all customs and borders to prevent rice smuggling in order to take deterrent measures against violators,” Kabil said. “The decision will positively contribute to the stability in rice prices for consumers.” [Reuters, DNE, 3/31/2016]
Also of interest
Saudi Arabia will only freeze oil production if Iran joins | Bloomberg
Fitch affirms Qatar at ‘AA’; outlook stable | Fitch
UAE’s Capital Group launches $4 billion project in Egypt | Amwal Al Ghad
Iraq’s March oil exports from south 3.286 million bpd | Reuters
Iraqi appeals court upholds $187 million Zain Iraq tax ruling | Reuters
Nominated Iraqi oil minister may facilitate deal with Kurds | Reuters