Saudi Arabia jumps up global talent league

Saudi Arabia leapfrogged the UAE in 30th place for the first time and closed the gap on Qatar in 26th position. (SPA)
Updated 19 November 2019

Saudi Arabia jumps up global talent league

  • The Kingdom rose five places in the annual survey

DUBAI: Saudi Arabia has jumped up the global league tables for the quality of its business executives, as measured by the International Institute for Management Development (IMD), the prestigious Swiss business school, in its 2019 World Talent Ranking.

The Kingdom rose five places in the annual survey, leapfrogging the UAE in 30th place for the first time and closing the gap on Qatar in 26th position.

The IMD’s improved rating for Saudi Arabia comes after the Kingdom jumped up the World Bank’s “doing business” ratings and an improved performance in the World Economic Forum’s global competitiveness rankings.

IMD said that Saudi Arabia showed improvements in the investment and development categories it judges, as well as readiness for economic and managerial change.

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Switzerland was first placed in the IMD rankings, followed by Denmark and Sweden.

It also scored high on the availability of apprenticeships, the prioritization of employee training, access to specialist skills and the availability of senior managers with international experience and finance skills.

In terms of its appeal to executive talent, however, Saudi Arabia was further down the placings.

Jose Caballero, senior economist at the IMD competitiveness center, told Arab News that Saudi Arabia could improve its appeal by “encouraging its private sector to prioritize talent attraction and retention, as well as focusing on increasing the levels of worker motivation, and the quality of life it offers.”

He added: “The talent potential of Saudi Arabia is captured in one of the Vision 2030’s key themes: A vibrant society, with strong foundations, especially in relation to education.”

But despite spending a big proportion of its GDP on
education, expenditure per student is relatively low, as is the quality of secondary schools and teacher-pupil ratios. The Kingdom ranks comparatively low down the ratings for adult literacy, Caballero added.

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Saudi Aramco shares soar at maximum 10% on market debut

Updated 11 December 2019

Saudi Aramco shares soar at maximum 10% on market debut

  • Company is now world’s largest publicly traded company, bigger than Apple

RIYADH: Saudi Aramco shares opened at 35.2 riyals ($9.39) on Wednesday at the Kingdom’s stock exchange, 10 percent above their IPO price of 32 riyals, in their first day of trading following a record $26.5 billion initial public offering.
Aramco has earlier priced its IPO at 32 riyals ($8.53) per share, the high end of the target range, surpassing the $25 billion raised by Chinese retail giant Alibaba in its 2014 Wall Street debut.
Aramco’s earlier indicative debut price was seen at 35.2 riyals, 10 per cent above IPO price, raising the company’s valuation to $1.88 trillion, Refintiv data showed.
At that price, Aramco is world’s most valuable listed company. That’s more than the top five oil companies – Exxon Mobil, Total, Royal Dutch Shell, Chevron and BP – combined.
“Today Aramco will become the largest listed company in the world and (Tadawul) among the top ten global financial markets,” Sarah Al-Suhaimi, chairwoman of the Saudi Arabian stock exchange, said during a ceremony marking the oil giant’s first day of trading.
“Aramco today is the largest integrated oil and gas company in the world. Before Saudi Arabia was the only shareholder of the company, now there are 5 million shareholders including citizens, residents and investors,” said Yasir Al-Rumayyan, the managing director and chief executive of the Saudi Public Investment Fund.
“Aramco’s IPO will enhance the company’s governance and strengthen its standards.”
Amin Nasser, the president and CEO of Saudi Aramco, meanwhile thanked the new shareholders for their confidence and trust of the oil company.
The sale of 1.5 percent of the firm, or three billion shares, is the bedrock of Crown Prince Mohammed bin Salman’s ambitious strategy to overhaul the oil-reliant economy.
Riyadh’s Tadawul stock exchange earlier said it will hold an opening auction for Aramco shares for an hour from 9:30 a.m. followed by continuous trading, with price changes limited to plus or minus 10 percent.

The company said Friday it could exercise a “greenshoe” option, selling additional shares to bring the total raised up to $29.4 billion.
The market launch puts the oil behemoth’s value at $1.7 trillion, far ahead of other firms in the trillion-dollar club, including Apple and Microsoft.
Two-thirds of the shares were offered to institutional investors. Saudi government bodies accounted for 13.2 percent of the institutional tranche, investing around $2.3 billion, according to lead IPO manager Samba Capital.
The IPO is a crucial part of Prince Mohammed’s plan to wean the economy away from oil by pumping funds into megaprojects and non-energy industries such as tourism and entertainment.
Watch the video marking Aramco’s opening trading: