Offering shares in Saudi Aramco wasn't a critical part of the kingdom's ambitious economic reform plans. But the ensuing muddle captured all its over-the-top zeitgeist, says an opinion piece by David Rosenberg on the website HAARETZ.
Aramco is the world's largest oil producer, and heir apparent Prince Mohammed Bin Salman, or MBS, the man leading the reform drive, was confident it was worth $2 trillion, twice Apple's valuation. The IPO would be the biggest in history and the world's leading stock exchanges were competing for the privilege of the listing.
Even U.S. President Donald Trump weighed in with a call for Aramco to choose to float stock in New York. Armies of foreign investment bankers and lawyers were put to work on the offering.
Well, not quite halted but delayed, according to an official government statement. But read between the lines: "The government remains committed to the IPO of Saudi Aramco at a time of its own choosing when conditions are optimum."
That's "forget it," as Sir Humphrey of "Yes, Minister" would say.
And with that, we have the other and more important part of the zeitgeist of MBS's "Vision 2030" plan for transforming Saudi Arabia from the world's gas pump into an economy on the cutting edge of technology and innovation, or at least one where the average Saudi has to work for a living rather than relying on government handouts and sinecures.
The Aramco IPO had been put off repeatedly since it was first announced in 2016 for the same reasons that MBS's big plans for the kingdom are doomed to failure.
The old guard at Aramco and in the government didn't want to disclose as much information about the secretive company as the New York and London exchanges were insisting on. MSB reportedly was fixed on the prestige of a $2 trillion valuation rather than thinking about cold calculations of the market.
What's become evident is that Vision 2030 is not the daring and transformative process that MBS and the glitzy marketing campaign surrounding it have promised. Like beauty, it's skin-deep,
MBS is correct in seeing the need to get Saudi Arabia off its oil fix.
Trump is still convinced the 20th century isn't over and that coal and oil will keep fueling us forever, but MBS understands the world is moving on. He is investing in solar power at home and in companies like Tesla (maybe) abroad.
At home, the goal is to create a flourishing private sector independent of petroleum that can provide jobs and create wealth.
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