THE SAUDI GOVERNMENT is set to earn an additional $1.9bn in royalties from state oil giant Saudi Aramco for every $1 increase in the price of crude above $70, according to Bank of America Merrill Lynch (BofAML) estimates.
The firm’s calculations are based on a royalty regime outlined by Bloomberg, which claimed to have obtained Aramco financial data ahead of a potential listing.
The news service said the data showed Aramco made nearly $34bn in net income in the first half of last year when Brent crude prices averaged $53 a barrel and was likely to make a significantly higher profit during the same period this year after the recent rally to more than $70.
It also detailed a royalty regime with the government set at 20 percent on oil liquids production up to $70 a barrel, 40 percent between $70 and $100 and 50 percent in excess of $100.
Continue reading your story on the app
Continue reading your story in the magazine
Special Report: Money matters
Exploring the future of wealth management in the GCC
The music world's next frontier
Here’s why you should take note of the burgeoning independent Arab music scene
Shattering the status quo
Georges Kern, CEO of Breitling, is swimming against the tide and gaining market share for the Swiss luxury watchmaker. Here’s what he’s doing right
RACING FOR HYDROGEN
How gas giants are vying to stay relevant as the industry moves towards sustainable goals
A Dubai homegrown concept, The Maine, led by restaurateur Joey Ghazal is going international and taking its New England brasserie concept to London’s tony Mayfair district
Ensuring efficient SYSTEMS
Advances in UPS design can address data centre cooling challenges, says Jake Guo, Data Centre Solutions manager at Huawei ME
LADDER TO THE SKIES
It’s not just the view at the top that Bal Krishen, the CEO and chairman of UAE-based Century Financial enjoys, but also the journey of reaching there. In this exclusive interview, the enterprising executive reveals his stellar professional rise, where the investment market is headed, and what the future holds
AN ALPINE SOJOURN
Switzerland has been the bellwether and thermometer for the health of Central European tourism. It’s beginning to climb out of one of its most challenging years ever, with Switzerland Tourism CEO Martin Nydegger bullish about a strong recovery
CHECKING — IN —
The region’s biggest travel and tourism event, Arabian Travel Market, held a successful in-person and virtual edition last month in Dubai. And the big question predictably was – has the industry started to recover? Are travellers stepping back on airplanes and ready to explore new destinations as the industry adapts to the Covid crisis? Aarti Nagraj has more details
A charging bull
Stephan Winkelmann, president and CEO of Lamborghini, has laid out an ambitious roadmap for all the cars within its fleet to be hybrid models by 2024, followed by an all-new full-electric Lambo before the end of the decade. And before you ask, the V12 combustion engine will continue to breathe
Most Americans can be terminated for no reason at any time. But 70,000 fast-food workers are about to gain major protections. Who’s next?
America's Trumpiest Attorney General Is Under Indictment Himself
Texas Attorney General Ken Paxton has waged some of the country’s most partisan legal battles while charged with fraud. Will his allegiance to Trumpism help him survive a fresh round of corruption allegations?
Nairobi startup Kukua is riding a wave of interest in Afro-futuristic stories
Hot Shorts Summer
Traders who bet on bad news are the necessary foils of meme stocks
Global Giants Need India's Tiny Stores
Amazon, Walmart, and Reliance’s Jio want mom and pop shops to order goods online and help with delivery
The 9 Million Who Slipped Through the Cracks
A record number of Americans filed for unemployment during the Covid recession—and a record number didn’t get any money
Latin America's E-Commerce Giant Tries Finance
MercadoLibre leverages a Covid-era e-commerce boom to bolster its financial services
The Limits of Lina Khan's Power
The FTC’s new chair wants to curb Big Tech. Getting courts to agree won’t be easy
The Little Guys Take A Bite Out of DoorDash
Homegrown alternatives to big food delivery apps are springing up across the U.S.
Will a Strongman Relent?
Venezuelan President Nicolás Maduro is indicating he wants to change his ways. Let’s see