Saudi Shura Council Asks Capital Markets Authority to Study Aramco IPO

The Shura Council meets on Tuesday. (SPA)
The Shura Council meets on Tuesday. (SPA)
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Saudi Shura Council Asks Capital Markets Authority to Study Aramco IPO

The Shura Council meets on Tuesday. (SPA)
The Shura Council meets on Tuesday. (SPA)

Saudi Shura Council called on Tuesday for a study of the effects the Aramco IPO will have on the local stock market to protect it from the concentration of liquidity in the company.

During a meeting, chaired by Deputy Chairman Mohammed al-Jafri, the Council called on the Capital Markets Authority (CMA) to develop the mechanism for compensating the affected shareholders as a result of violations of the financial market system and its regulations.

The Council adopted its decision after listening to the Finance Committee's view on the comments and opinions of the members on CMA's annual report for the last financial year.

In its decision, the Council called for intensifying the Authority's efforts to raise investor confidence, bolster opportunities to attract investments and stimulate the owners of family businesses by clarifying the financial benefits of listing their companies in the market.

The Shura stressed the importance of identifying the effects of low cash in the capital market and reducing its impact on the future activity of the financial market and studying the effects of Aramco IPO in the local stock market.

The Council endorsed the Committee's view that the size of Aramco's offering, which is 5 percent of its shares, represents the largest IPO in history in terms of financial value.

The local market is not expected to absorb an initial offering of this size, confirming that foreign investors entering the financial market will contribute in introducing new liquidity into the economy that could be channeled to stimulate growth in other promising sectors.

An additional recommendation by Council member Khalid al-Aqeel stating that "Saudi companies and individuals are entitled to the largest share of the IPO in Saudi Aramco" was not approved.

The Council also called for the Institute of Public Administration to design and implement programs to train public workers involved with the implementation of the "National Transformation Program 2020" and the realization of Vision 2030.



Gold Prices Hit Records Above $3,300/oz

FILE PHOTO: Gold bars are displayed at a gold jewelry shop in the northern Indian city of Chandigarh May 8, 2012. REUTERS/Ajay Verma/File Photo
FILE PHOTO: Gold bars are displayed at a gold jewelry shop in the northern Indian city of Chandigarh May 8, 2012. REUTERS/Ajay Verma/File Photo
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Gold Prices Hit Records Above $3,300/oz

FILE PHOTO: Gold bars are displayed at a gold jewelry shop in the northern Indian city of Chandigarh May 8, 2012. REUTERS/Ajay Verma/File Photo
FILE PHOTO: Gold bars are displayed at a gold jewelry shop in the northern Indian city of Chandigarh May 8, 2012. REUTERS/Ajay Verma/File Photo

Gold prices pierced the $3,300 an ounce barrier to hit record highs as investors sought a refuge from the turbulence surrounding trade tensions between the United States and China.
Spot gold hit a record of $3,317.90 per ounce on Wednesday, resuming a rally based on US President Donald Trump's tariff policies, robust central bank buying and prospects of interest rate cuts by the Federal Reserve, Reuters reported.
"Gold is re-calibrating to reflect the current state of world affairs ... If the price is telling us something, then it’s a distinct warning bell," said independent analyst Ross Norman.
"High conviction buying that commenced about a year ago - likely unreported central bank buying - is being compounded by buying on price strength."
Bullion has gained around 26% so far this year, in a rise that has drawn comparisons with its 1980 rally during the Iranian Revolution, when prices shot up around 118% between November 1979 and January 1980.
Trump on Tuesday rolled out the latest of his tariff policies, ordering an investigation into potential new levies on all US critical minerals imports and other goods.
Gold is traditionally used to hedge against political turmoil.
"Some longer-term gold owners are taking profit at these fresh record highs, but new inflows are also running strong," said Adrian Ash, director of research at BullionVault.
Gold ETFs saw an inflow of 226.5 metric tons, worth $21.1 billion, in the first quarter of 2025, the largest amount since the first quarter of 2022, when markets were grappling with the consequences of Russia's invasion of Ukraine.
"ETF demand is the additional new component that had otherwise been missing and is certainly helping to fuel the rise," Norman added.
Gold has also gained from the lower dollar, near a three-year low, making bullion a more attractive investment for other currency holders.
"The next milestone for gold is $3,500. Expect that before too long," Norman added.
Central bank buying has further buoyed gold, with China's central bank adding to its reserves in March for the fifth straight month.
Gold posted 25 all-time highs this year, of which 13 are above the $3,000 level.