Abu Dhabi (AFP)

The Saudi oil giant Aramco is "ready for IPO" but "the decision is the responsibility of the Saudi" government, said Tuesday its CEO Amin Nasser, while this much-awaited operation has been delayed against the backdrop of falling prices.

"One of the first listing activities (+ listing +) will be local but we are also ready for foreigners," Nasser told reporters at a conference of oil producing countries in Abu Dhabi. .

The US newspaper Wall Street Journal (WSJ) reported last week that Aramco was planning to make its debut in the domestic market, and that the company would eventually enter the international market, citing Tokyo.

The Saudi juggernaut plans to sell about 5% of the state-owned company in 2020 or 2021 in what could be the largest equity sale in the world.

This future IPO is the cornerstone of a reform program initiated by the powerful Crown Prince Mohammed bin Salman to lift the Saudi economy from its ultra-dependence on oil.

The marketing of the 5% of Aramco should bring back some 100 billion dollars (90 billion euros), although experts are skeptical about the global valuation of the company to 2.000 billion dollars (1.811 billion euros) ).

The difficulty of reaching the desired amount by Ryad is widely regarded as the reason for the postponement of the IPO, initially planned for 2018.

Earlier this month, Aramco said its net profit for the first half of 2019 fell nearly 12 percent to $ 46.9 billion, or 42.4 billion euros, as a result of the price of crude.

It was the first time the company had published half-yearly financial results a few months after unveiling its new accounts in April, proving to be the most profitable company in the world.

- "Diversifying the economy" -

Meeting this week in the capital of the United Arab Emirates, members of the Organization of Petroleum Exporting Countries (OPEC) and other major producing states are considering reducing production to support prices.

The fall in prices comes despite previous cuts in production and US sanctions that have reduced supply from Iran and Venezuela.

Analysts doubt the effectiveness of such a measure on oil prices, especially affected by the fears of slowing global growth caused by the trade dispute between the United States and China.

On Monday, the new Saudi energy minister, Abdel Aziz ben Salmane, had said that the reduction in oil production "would benefit" all producing countries.

Prince Abdelaziz, half-brother of Crown Prince Mohammed bin Salman, is the first member of the royal family in charge of this ministry essential for the world's largest crude oil exporter.

The fall in crude prices in recent years has weighed heavily on the kingdom's revenue and led to budget deficits in the country, which earns 70% of its revenue from oil.

Under the leadership of the Crown Prince, Ryad recently imposed a series of measures to diversify its economy, such as VAT or rising energy prices.

For the International Monetary Fund (IMF), these reforms have begun to "bear fruit", but much remains to be done to fill this chronic budget deficit.

The budget deficit of the kingdom is expected to widen further this year, to 6.5% of GDP against 5.9% in 2018, said Monday in a report the institution based in Washington.

She called on the authorities to "promote the growth of non-oil activity, create jobs and achieve the objectives of the + Vision 2030+" program, which aims to diversify the economy.

© 2019 AFP