IB- Case 8

Answer the following questions:

1

Does Aramco have a role in a world that is moving away from fossil fuels and toward renewable sources of energy? How will these trends impact the company in over the next 10-20 years?

2

Aramco’s IPO is expected to be the world’s largest ever. What is an IPO? Why is Aramco taking this step? What does the move tell you about the growth of global capital markets?

3

Discuss the irony of Aramco, the world’s largest oil company with a primary focus on oil production, having an IPO which will generate funds that will be used in part to fund wind and solar power initiatives in Saudi Arabia. What does this tell you about the country’s leadership?

4

Reflect on the ethical consideration of investing in Aramco, a company that is closely tied to Crown Prince Muhammad bin Salman, a man who has been accused by the United Nations among other organizations, of ordering the murder of journalist Jamal Khashoggi. How might this situation impact Aramco’s IPO?