Mohammed bin Salman’s appointment as Saudi Arabia’s crown prince will not derail plans for listing the Kingdom’s oil and gas producer, an analyst has said.
Proceeds from the sale of Saudi Aramco are expected to be used to create the nation’s first sovereign wealth fund.
Helima Croft, global head of commodity strategy at RBC Capital Markets, said it would be “full steam” for the listing following bin Salman’s appointment.
Ms Croft also said the development was unlikely to have an effect on Saudi policy on oil policy.
But Ms Croft did say it was possible that the drive to reduce Saudi Arabia’s dependence on oil revenues would deepen under bin Salman.
The political risk premium could increase under bin Salman, if he pursues a more aggressive and hawkish foreign policy, with intensified efforts to confront Iran.
Ms Croft said: “Under MBS’s watch the Kingdom has launched a costly war in Yemen and spearheaded a surprise blockade of fellow GCC member Qatar.
“The key question is what comes next in this quest to counter Iranian influence? Is the Qatar blockade simply the opening act in a broader anti-Iranian offensive?
“Having President Trump in the White House probably means that MBS will encounter minimal push-back from Washington and a far freer hand to police his neighborhood. Hence we contend that region could witness more near-term volatility and heightened risk of military confrontation. The political risk premium may therefore be set to stage a comeback.