Saudi Arabia is 'gradually running out of money' and needs IPO to fund reforms, ex-CIA chief says

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Saudi Arabia is 'gradually running out of money' and needs IPO to fund reforms, ex-CIA chief says
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Saudi Arabia needs the initial public offering (IPO) of its state oil company to be successful, the former chief of the CIA David Petraeus said.

Saudi Arabia needs the initial public offering of its state oil company to be successful as it needs to attract outside investment and, frankly, it needs the money, the former chief of the CIA David Petraeus told CNBC Thursday.

"The deficits each year, depending on the price of Brent crude, can be anywhere from $40 to $60 billion depending on some of their activities in countries in the region." Saudi Arabia is going to float a small portion of its state oil giant Saudi Aramco, the most profitable company in the world, in December. The IPO was first flagged in 2016 by the now-Crown Prince Mohammed bin Salman. He said then that he believed the company was worth around $2 trillion. The listing is seen as part of the crown prince's "Vision 2030" program of economic and social reforms designed to diversify the kingdom's economy and reduce its dependence on oil.

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