Driving diversification through strategic investments
Saudi Aramco’s 20-year, $11bn lease deal with Global Infrastructure Partner (GIP), a firm under BlackRock’s umbrella, for Jafurah Field Gas Plant underscores the growing international confidence in Saudi Arabia’s ongoing economic transformation. The agreement provides Aramco with upfront cash for further investment, while it retains control of production and revenues. In return, GIP receives a steady cash flow from Aramco’s fee payments each year.
The deal is symptomatic of the developments funded by Saudi Arabia’s Public Investment Fund (PIF), as part of the Vision 2030 programme’s aim to attract foreign capital to the Kingdom. The pressure on oil prices has weighed on investment activity recently and limited the…
