Saudi Aramco declares $1.71 tn valuation in blockbuster IPO

News Network
November 17, 2019

Riyadh, Nov 17: Saudi Arabia on Sunday put a value of up to $1.71 trillion on energy giant Aramco in what could be the world's biggest IPO, but missed Crown Prince Mohammed bin Salman's initial target of $2 trillion.

Aramco said it would sell 1.5 percent of the company in a blockbuster initial public offering worth at least $24 billion.

"The base offer size will be 1.5 percent of the company's outstanding shares," the state-owned energy giant said in a statement that set the price range at 30-32 Saudi riyals per share ($8-8.5).

The much-delayed offering is scaled down from original plans, but it still rivals the world's biggest listing so far -- the $25 billion float of Chinese retail giant Alibaba in 2014.

Aramco had initially been expected to sell a total of five percent on two exchanges, with the first listing of two percent on the kingdom's Tadawul bourse, followed by a further three percent on an overseas exchange.

But the firm has said there are no current plans for an international stock sale, indicating that the long-discussed goal had been shelved for the time being.

Saudi Arabia is pulling out all the stops to ensure the success of the IPO, a cornerstone of de facto ruler Prince Mohammed's ambitious plan to diversify the economy by pumping funds into megaprojects and non-energy industries.

S&P Global Ratings said the stock market debut could enable the kingdom to strengthen its financial position.

"If subsequently effectively deployed, the funds raised could be used to support longer-term economic growth in Saudi Arabia," it said.

The government has reportedly pressed wealthy Saudi business families and institutions to invest, and many nationalists have labelled it a patriotic duty.

Even for the domestic listing though, there are reports the firm is struggling to attract foreign institutional investors, amid an uncertain outlook for the energy sector and questions over company disclosures and governance.

In its prospectus released last week, the company lists a variety of risks ranging from terrorist attacks to geopolitical tensions in a region dominated by Saudi-Iran rivalry.

One striking element was a warning that global oil demand may peak within the next 20 years, citing a forecast from industry consultant IHS Markit.

It also acknowledged that climate change concerns could reduce the demand for hydrocarbons.

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News Network
March 9,2020

Riyadh, Mar 9: Schools and universities will be closed in Saudi Arabia from Monday to control the spread of coronavirus.

The Saudi Ministry of Education said the “preventive and precautionary” measures were recommended by the health authorities and are designed to protect students and staff.

The decision covers all educational institutions, including public and private schools, and technical and vocational training institutions.

“The Minister of Education directed that virtual schools and distance education be activated while the schools are closed to ensure that the educational process continues in an effective and quality manner,” the ministry said.

The Kingdom's Education Minister, Hamad bin Mohammed Al-Asheikh, confirmed that the decision was a precautionary step and said that they are conducting daily and weekly evaluations before returning to school.

Meanwhile, the Minister of Health, Tawfiq Al-Rabiah, confirmed that there have been no coronavirus cases in any educational facility in the Kingdom.

“Thank God, the situation is reassuring, and there has been no case in any educational facility. However, the increasing cases in countries have made us keen to enhance the safety of our sons and daughters. So we coordinated with the Ministry of Education to close the schools temporarily,” he said in a tweet on Sunday.

The education ministry has set up supervision offices to help coordinate the distance learning, and respond to parents’ inquiries.

A new committee set up by the ministry will also ensure the virtual schools are functioning through the distance learning methods provided by the ministry.

These include the virtual school platform (Vschool.sa) and mwterials available from the Apple and Android stores.

It will also provide lessons through the “Ain” TV channeland as well as on YouTube via this link: www.youtube.com/dorosien.

The General Presidency for the Affairs of the Grand Mosque and the Prophet’s Mosque also said on Sunday that it will suspend the visitation programs in its external facilities as part of recommended precautions to prevent the spread of the coronavirus and ensure the safety of visitors.

The facilities include the King Abdulaziz Complex for the Covering of the Holy Kaaba, the Gallery of the Two Holy Mosques, and the Library of the Holy Mosque of Makkah.

“The presidency has taken a series of precautionary measures to prevent the spread of the virus, by intensifying sterilization work that is taking place around the clock, and has been keen on coordination and joint cooperation with all relevant government sectors,” it said in a statement issued on SPA.

It added that these preventive efforts come within the procedures that are being implemented by the Saudi government seeking to combat the spread of the new virus, to protect the people of the Two Holy Mosques in particular, and citizens and residents in the Kingdom in general.

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News Network
May 7,2020

Dubai, May 7: As India begins the world’s largest evacuation mission by repatriating its overseas citizens stranded due to COVID-19, as many as 354 of them from the UAE will fly into their home country in the first two flights to Kerala today.

An Air India Express flight, which is scheduled to take off from Abu Dhabi to Kochi at 4.15 pm is the first flight, which will be followed by a Dubai-Kozhikode flight of the same airline at 5.10pm. The Indian missions in the UAE finalised the list of passengers, who were chosen based on the compelling reasons they submitted while registering their names.

Selection criteria

These include pregnant women and their accompanying family members in some instances, people with medical emergencies, workers and housemaids in distress, families with cancelled visas, bereaved family members who couldn’t attend funerals back home, a few students and stranded visitors and tourists including two brothers who got stranded in Dubai International Airport for 50 days, the missions said.

Short-listing the first passengers from among a database of more than 200,000 applicants, who include around 6,500 pregnant women, has been a mammoth task which posed several challenges for the missions, Neeraj Agrawal, Consul Press, Information and Culture at the Indian Consulate in Dubai told Gulf News.

He said the consulate set up an operations room in a tie-up with community volunteers from Kerala Muslim Cultural Centre, Indian Association Ajman, AKCAF Task Force, the BAPS Mandir, Indian People’s Forum, and Tamil Ladies’ Sangam.

 “We are trying to accommodate as many deserving people as possible. We expect the understanding of the people. It has been very difficult to sort out everyone’s urgency.”

“We cannot do a lottery system in this and we had to make sub- categories to ensure there is a mix of people with different types of urgencies.”

“Though we want to give priority to pregnant women, it is practically not possible and not good for the health and safety of the applicants to allot a lot of them on the same flight.”

He said 11 pregnant women have been issued tickets on the Dubai-Kozhikode flight.

“That is the threshold we can allow on a flight.”

Volunteer support

The consul appreciated the support of the volunteers in finalising the flight manifest.

“But our response ratio was very less. Many people whose names came up on top of the list were not willing to go on the first flights.”

Due to various constraints like this and sometimes the details of accompanying persons not readily being available, he said the mission was not able to quickly reach out to who might be really in need.

“However, we have given due consideration to people who got in touch with us with their emergency needs. At the time of issuing tickets, we had about 20 such cases.”

He said the Consul General of India in Dubai Vipul led the entire operation and Pankaj Bodkhe, consul, education, was in charge of the Dubai flight.

A big challenge

“It has been a big challenge. Our only concern is that despite our best efforts, sometimes people with more compelling reasons might have got left out on the first flights because of the volume of people who have reached out to us.”

Since there is a chance that some passengers with tickets might not be allowed to fly if they fail the medical screening including blood tests to check antibodies for COVID-19, he said some applicants in the waiting list have been asked to be on standby at the airport.

People with emergencies wishing to fly to other destinations also could not be included, he pointed out.

“We had to ask them to wait. We are unable to send them to other destinations. We can see their desperation. We feel sorry and desperate.”

He said the government is trying to add more flights to un-chartered destinations and a new flight from Dubai to Kannur has been added on May 12.

Passengers of today’s flights have been urged to reach the airport four to five hours prior to departure to facilitate the medical screening.

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News Network
April 13,2020

Dubai, Apr 13: The UAE plans to impose "strict restrictions" on countries reluctant to take back their nationals working in the Gulf country in the wake of the coronavirus outbreak and restructure its cooperation and labour relations with them, a state-run media report said on Sunday.

Indian expatriate community of nearly 33 lakh is the largest ethnic community in UAE constituting roughly about 30 per cent of the country’s population. Among the Indian states, Kerala is the most represented followed by Tamil Nadu and Andhra Pradesh.

The options being considered by the Ministry of Human Resources and Emiratisation include "imposing strict future restrictions on the recruitment" of workers from these countries and activating the "quota" system in recruitment operations, state-run WAM news agency reported, citing an official.

It said the options also include suspending memoranda of understanding signed between the ministry and concerned authorities in these countries.

Citing the unnamed official, it said these options are being considered after many countries did not respond to requests by their nationals to return home following the coronavirus outbreak.

The official made it clear that all countries of foreign workers in the UAE should be responsible for their nationals wishing to return to their countries as part of the humanitarian initiative launched recently by the ministry.

Earlier this month, the ministry launched the initiative to enable residents who work in the UAE and wish to return to their countries to do so during the period of precautionary measures undertaken in the UAE to contain the spread of the coronavirus.

Employees will be asked to submit their annual leave dates or agree with their employers on unpaid leave.

UAE's Ambassador to India Ahmed Abdul Rahman Al Banna has said that the Ministry of Foreign Affairs and International Cooperation (MOFAIC) had sent out a “note verbale” to all the embassies in the UAE, including the Indian mission, during the past couple of weeks on the issue.

“We have sent the note verbale and all the embassies have been informed including the Indian embassy in the UAE and even the Ministry of External Affairs in India,” Al Banna told Gulf News over phone on Saturday.

He said the UAE has offered to test those who want to be evacuated.

“We are assuring everybody that we have the best of the facilities, the best of the testing centres and we have tested more than 500,000 people,” he said.

“We are assuring them also of our cooperation to fly those who got stranded in the UAE for some reasons. Some got stuck because of the lockdown and closure of airports in India. Some were visiting the UAE.”

“We are offering our system and making sure that they are good (to fly) by doing all the tests and transport them according to the request of their own government,” he said.

The envoy said those who test positive for COVID-19 will remain in the UAE. “They will be treated in our home facilities,” he added.

The Kerala High Court on Saturday sought the central government's response to a petition seeking a direction to bring back Indians stranded in the UAE in view of the coronavirus outbreak in the gulf nation.

Considering the plea by Kerala Muslim Cultural Centre (KMCC) in Dubai, the court directed the Centre to file an affidavit on the steps taken by it to ensure the safety of Indians living there and bring back those stuck in the Gulf countries.

In its plea, KMCC, the organisation for non-resident Indians from Kerala, sought directions to the Ministries of External Affairs and Civil Aviation to provide exemptions in the international air travel ban to bring back those Indians stranded in the UAE.

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