4 ms·
One shareholder (Prince Mohammad bin Salman) needs 500B to finance his project of starting a city from scratch to compete with Dubai. (project Neom if you want
by Iv 8y ago
One shareholder (Prince Mohammad bin Salman) needs 500B to finance his project of starting a city from scratch to compete with Dubai. (project Neom if you want to google it). He also wants to feed some money in a tech investment fund (solar energy and AI). That's the main reason behind the IPO IMO.
And shareholders would probably be more interested in the oldest reason to buy stocks: getting a share of the profits as dividends. If oil supply becomes insufficient before the Saudi reserves dry up, the prices will skyrocket and so will the profits.
Sure, it won't last 100 years, but if you are looking to get dividends within 20 years, that's not necessarily a bad deal.
- itronitron 8y agoI would think, or at least hope, that 500B could buy peace in Yemen and that he could pick a city there to refurbish from scratch.
- azernik 8y agoProbably can't. Saudi military strength in Yemen is not limited by budget, so doesn't help with a military solution. And the issues of control and religion and security over which the war is being fought can't really be made to go away with money, so wouldn't help too much with a political solution. In any case, building up a city in Yemen would not strengthen the Saudi state and MBS's personal political power in the way that a new and rich Saudi city would.
- Iv 8y agoWell he wants a city populated by hipster close to a trade route and also to use it as a way to normalize relationship with Israel and "experiment" a non-sharia area in KSA. Such a project will require being careful about who gets there.
- deleted 8y ago[deleted]