JEDDAH: The partial privatization of oil giant Saudi Aramco would raise revenue for the state, help build infrastructure, improve services, and ensure citizens can save more, say economists and financial experts.

This comes in the wake of Deputy Crown Prince Mohammed bin Salman, second deputy premier and defense minister, announcing Monday sweeping economic reforms to reduce the country’s dependence on oil, with plans for a $2 trillion sovereign fund that would include proceeds from Aramco’s initial public offering and other state-owned assets.

Fathi Ismael, an economist, said the privatization of Aramco would see the company restructured and divided into more specialized entities, which would include drilling, production and research, refining and petrochemicals.

There would also be divisions for marketing, global and local distribution, manufacturing and treating gas, support services, property management, engineering, administration, medical services, and education and training, he was quoted as saying by a local publication on Tuesday.

The privatization of the company would not be easy because of its massive size and supervision of a wide array of activities including exploration, developing oil and gas fields, manufacturing, refining, distribution and support services.

Ismael said the entire company should not be privatized because it was dealing with activities that affect the sovereignty of the country. The main aim of any move to offer shares to the public should be for greater profits and earning foreign currency, which has declined with the fall in oil prices.

Sayed Al-Ilaimi, an oil expert, said the privatization of Aramco should not be limited to only getting more foreign currency and attracting foreign investments, but should result in more transparency about the earnings of the firm, which should translate into it reducing its expenditure.

He said the sale of its shares would take time because of the size of the company and because it has assets all over the world, in addition to it producing 10 percent of the world’s oil production.

Ahmad Adam, a banking expert, said selling Aramco shares would likely enhance citizens’ savings, because of its huge assets. The sovereign fund created would also reassure the public that the country is able to have income apart from oil.

He said the sovereign fund would help the country achieve significant growth rates in future. However, there should be more done to change legislation that is hampering investment flows into the Kingdom.

Oil expert Rashad Abdulrahim said selling part of Aramco would give it unprecedented economic weight and contribute funds for various development projects that support local economy.

Alyaa’ Al-Mahdi, former dean of the economics and political science department at Cairo university, said the privatization would ensure diversified sources of income for the country.

It would also encourage companies and individuals to enter into partnerships with the state on giant projects, and open the way for greater foreign direct investment, she said.

Oil expert Medhat Yousif said the privatization would revive the stock market because of Aramco’s strength in the Saudi economy, and ensure greater investment in the domestic market.