Non-oil activities increasingly important for Aramco

Updated 07 July 2017
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Non-oil activities increasingly important for Aramco

DUBAI: Saudi Aramco’s annual review, published on Thursday, highlights activities outside the traditional energy business — technology, innovation and human capital — which it sees as central to its corporate structure and which it believes will help maximize its value for the upcoming initial public offering (IPO).
“Technology and innovation are key drivers of our strategy to maximize the inherent value of the resource base, enable a more diversified and globally competitive domestic market for our products, and create a Saudi workforce with a world-class knowledge base,” the review said.
“We realize these goals by developing and commercializing new technologies, evolving strategic alliances with industry partners, forging relationships with world-leading research and academic institutions, and pursuing strategic acquisitions and investments to generate additional value,” it added.
In research and development, Aramco’s efforts focus on the upstream, downstream, and sustainability domains — specifically on high-impact technologies that have the potential to create significant competitive advantage for operations, and help grow new businesses.
In 2016, Aramco “progressed initiatives across the hydrocarbon value chain, from underwater robotic seismic acquisition and faster reservoir modeling, to improved refinery yields and new fuel formulations,” the review said.
Research network
Research is an increasingly important part of Aramco’s corporate strategy. Its Global Research Network has 11 offices in the Kingdom and around the world. Three in the US — in Detroit, Boston and Houston — came together to collaborate on climate change issues in 2016.
The venture capital subsidiary, Saudi Aramco Energy Ventures (SAEV), headquartered in Dhahran and with a presence in North America, Europe, and Asia, invests globally in startup and high-growth companies developing technologies of strategic importance.
In 2016, SAEV made eight new direct investments and began a series of technology pilot projects, the review said.
Human resources and localization of jobs and services also play a prominent part in the review.
“The Kingdom is a land rich in natural resources — especially oil and gas. But its real wealth lies in the talents of its people and the potential of its younger generations. We help unleash this potential by delivering community-based corporate citizenship initiatives that give people the tools they need to seize the opportunities of the future,” it said.
Aramco runs 141 company schools in the Kingdom, and launched a program to encourage women’s employment in science, technology, education and mathematics.
In 2016, the flagship King Abdulaziz Center for World Culture, an initiative for enabling the knowledge economy through creativity and culture, opened in Dhahran. It organizes activities in Saudi Arabia and abroad on the themes of history, archaeology, arts and film of the Kingdom.


Saudi banks, Dubai shares give Gulf markets a timely boost

Updated 24 January 2019
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Saudi banks, Dubai shares give Gulf markets a timely boost

  • The Dubai index was up by 0.9 percent with Emirates NBD, its largest bank, adding 2.1 percent and its largest listed developer Emaar Properties gaining 2.2 percent
  • Nasdaq-listed DP World increased 0.7 percent after increasing its stake in its Australia unit

DUBAI: The Dubai stock market snapped a three-day losing streak on Wednesday, boosted by its financial and property shares, while Saudi Arabia rose on the back of its banks.
The Dubai index was up by 0.9 percent with Emirates NBD, its largest bank, adding 2.1 percent and its largest listed developer Emaar Properties gaining 2.2 percent. Gulf Arab economies are expected to grow at a slower pace than previously forecast, a quarterly Reuters poll of economists found, as oil output cuts, lower crude prices and weaker global growth put pressure on regional economies. Amlak Finance rose 2.2 percent after announcing a renegotiation of restructuring terms with its financiers to allow more flexibility in adapting to “current market conditions.” Nasdaq-listed DP World increased 0.7 percent after increasing its stake in its Australia unit.
The port operator will spend at least $250 million buying back some shares in its Australian port terminals unit. Saudi Arabia’s index rose 0.8 percent, with nine out of 10 banks rising.
Al Rajhi Bank was up 0.6 percent and Samba Financial Group closed 1.7 percent higher. Petrochemical investor Alujain added 1.5 percent after an update on the fire at its affiliate’s plant.
The company said it now expects the NATPET plant to start operating all units by the end of September.
The Egyptian blue-chip index was up 0.2 percent with its largest listed bank Commercial International Bank gaining 4.2 percent.
The Egyptian Exchange on Wednesday canceled all transactions made the previous day in local firms Sixth of October Development and Investment Company (SODIC) and Madinet Nasr for Housing and Development (MNHD).
The move followed SODIC’s decision against a takeover of MNHD and involved their shares being suspended on Wednesday as the bourse reset prices. Global Telecom Holding jumped by 10 percent before trading on its shares were suspended, pending a statement from the company after VEON Ltd, a major shareholder in the firm, said it was considering taking it private.