Saudi Aramco's initial public offering (IPO) could encourage other Gulf countries to list their oil assets, a leading regional economist said, but the oil giant must clear uncertainties over taxation, OPEC policy and ownership of crude. Nasser Saidi, a former economy minister of Lebanon, told Dubai Eye Radio in an interview broadcast on Wednesday that Aramco has to address how the company will separate its assets and liabilities from those of the state. "Many countries could follow in the region. (The) UAE I think could potentially be attracted to this," Saidi said. "We have long discussed the possibility that well-performing state enterprises could be listed, and potentially this could open the road for that," Saidi, also a former chief economist and head of external relations at the Dubai International Financial Centre, added. While Aramco is the world's largest oil firm, the United Arab Emirates, Kuwait and Qatar also hold major oil assets that are managed by state companies. The listing of Aramco IPO-ARMO.SE, expected to be the world's biggest IPO and raise tens of billions of dollars, is a centerpiece of the Saudi government's ambitious "Vision 2030" plan to diversify the economy beyond oil. When the plan was announced in June last year, it pledged to "transform Aramco from an oil-producing company into a global industrial conglomerate", although Saudi officials still debate the shape the company should take. The Saudi government plans to list up to 5 percent of Aramco next year on the local bourse and international stock markets. The proceeds will be used to invest in other sectors likely to create jobs for young Saudis. But for the plan to succeed, Saidi said Aramco must address issues related to governance, transparency and "who owns the natural resource wealth of Saudi Arabia".
