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00:00 I think that's enough. Let's move on to the analysis of the session's performance today with my guest, Dr. Ali Boukhamsi, Director of the Center for Development and Development of Economic Consultations.
00:09 Welcome. Dr. Ali, let me start with you. Of course, with the results of Aramco. Yes, there was a decline in revenues, as expected. Yes, there was a decline in profits, but better than expected.
00:22 You had a factor that I expected to have a better impact on Aramco, which is the low prices. I expected the financial impact to be important and great on the company.
00:31 But do you think that what made this factor so important to affect its profit margin was the decline in sales due to the Saudi pressure to continue in the voluntary decline?
00:42 Welcome. Thank you for this kind invitation. In fact, yes, we are facing a major dilemma in the Aramco share market.
00:54 The truth was that it was supposed to rise today in a way that expresses, as you mentioned, that the analysts' expectations came less than the actual profits achieved.
01:06 This indicates an exceptional achievement for the management of Aramco, which succeeded in the light of the huge savings that the Kingdom of Saudi Arabia committed to in the past period,
01:16 which were also increased in the last phase. Therefore, there was a significant reduction in production, meaning a significant reduction in volunteers.
01:26 This has a great impact on the company's profit margin, but the profits came, in fact, good and better than expected.
01:36 This is enough. It is better than expected by about 2%. On the other hand, the issue of the impact of the valuation.
01:44 The fact is that the increase in the valuation price is not compared to a reduction in the value of the shares.
01:53 I know very well, Dr. Ali, that there is no room for comparison, and even if Aramco did that, it would improve the volunteers, but it would not compensate for the impact of the sales.
02:05 Even Saudi Arabia, however, has a new impact on us. It raised the prices of oil sales to Asia, and even this impact will not be very large.
02:13 To what extent, let me summarize the subject, to what extent today the results of Aramco and the market response to Aramco were good?
02:20 Because it did not rise or fall. With the closure, I tell you, we closed at 29 Riyals and 95 Halala, about 30 Riyals.
02:28 The fact is that it could have clearly increased if not for the fear of the new bid. The new bid is the most pressing factor on the hardships of Aramco at this time.
02:39 The new bid is the most pressing factor on the hardships of Aramco at this time.
02:46 The new bid is the most pressing factor on the hardships of Aramco at this time.
02:54 The new bid is the most pressing factor on the hardships of Aramco at this time.
02:59 Aramco could easily have reduced the number of distributions, but Aramco committed to distributing the same percentage.
03:09 This is a good indicator for investors, especially investors who are looking for security and have a fair percentage of the investments and a small percentage of the losses.
03:17 But the truth is, given that Aramco has a huge share, 242 billion, a huge amount, how much will it be after the new bid?
03:26 This is the fear of the new bid.
03:29 Dr. Ali, I do not ask for recommendations. I always have to mention this on the CNBC Arabic screen.
03:39 I am a colleague. We do not offer recommendations on this question or similar questions.
03:43 Everyone who is thirsty for this bid, they see that it can achieve the desired benefit for them.
03:49 We saw Aramco entering the market. It is not one of the stocks that has won a lot of market value.
03:55 Yes, it committed to distribution. It is ready to borrow, even if it is behind distribution.
03:59 This is important. As a basic analysis, as an investment on the long term, Aramco is certainly excellent.
04:05 I am talking about if I was a trader and I want to buy a share, I will enter a new writer in the market.
04:10 Will this give me the momentum to grow the market value as I expect?
04:15 The truth is, as a personal reading, the thirst is not from the local shareholder and not from the local bidder.
04:24 This is not important. Thirst is before the global markets.
04:27 Because the stock will be as it was previously announced that it may be in the London and Tokyo stocks.
04:32 Therefore, there will be an international demand. There will be an entry of international investors,
04:37 who will be careful to seize the opportunity to own Aramco shares.
04:41 They are not looking for a stock that is a long-term investment, with stable returns and strong distribution.
04:47 They are looking for a long-term investment, with stable returns and strong distribution.
04:52 This also increases the value of their intellectual profits instead of their financial profits.
04:57 Therefore, I believe that the link is here, not the local bidder or the local market.
05:02 Let's leave Aramco and give us the truth of its truth.
05:06 Hakko, I will go with you to the market profit repeats today. Do you see it as a motivation to invest in it as an active market?
05:13 You have already opened the subject of foreign investors. We are on the MSCI. We are also looking for active indicators.
05:20 To what extent does the Saudi market compete today?
05:22 Do you know that its weight on the indicator compared to other Arab markets is good?
05:27 So, to anyone, do you think that we are still under the eyes of the foreign investor?
05:33 The truth is that the process does not require personal effort or personal reading.
05:38 The MSCI indicator, in the last three or four times, may increase the value of the Saudi indicator and increase its opening to the Saudi market.
05:49 New companies are being launched. Even companies are immediately put in the Saudi market.
05:55 The Saudi market is a modernization of the era and is being developed. Therefore, the international investor reads with care the developments of the Saudi market.
06:03 Why is there interest? The real interest is that there is a very strong, growing economy.
06:09 There is a high annual investment gap that the government is committed to.
06:14 There are large investment projects. Therefore, all of these are opportunities for growth and opportunities to drive investment in this market.
06:23 These companies have projects and are in the market. Therefore, they are qualified to reap the benefits.
06:30 Therefore, I think that these indicators are strong and sufficient for foreign investors to enter the Saudi market and open more.
06:43 Not only with the improvement of the legislation, but also with the development of the systems and the level of performance of the market.
06:48 All of these are considered high liquidity factors. Therefore, all serious factors are actually available to the Saudi market.
06:56 Thank you for your time. Dr. Ali Boukhamsi is our guest. You are the director of the Center for Development and Development of Economic Consultations.