The flames of war have not yet died down, but Saudi Aramco is accelerating its "monetization"! Plans to sell $35 billion worth of infrastructure and real estate equity.

Saudi Aramco is advancing the largest asset privatization plan in its ninety-three-year history, aiming to cash out up to $35 billion through the sale of infrastructure, real estate, and other non-core assets, to bolster its balance sheet and attract foreign capital inflows. According to media reports citing informed sources, related deals are already underway, covering sale-and-lease-back transactions of real estate assets such as its headquarters campus, sale of equity stakes in oil export and storage terminals, as well as deals involving gas power plants and water infrastructure businesses. Insiders say that despite ongoing conflict in the Middle East, these assets are still considered attractive and are expected to spark broad interest from Wall Street institutions. This round of asset sales is being accelerated under the backdrop of regional conflict, making the timing quite sensitive. Since the outbreak of hostilities on February 28 this year, Gulf region exports have been hit, and the global M&A market has generally turned cautious, but Saudi Aramco's privatization process has not slowed down. Analysts note that the strategic meaning of this move has shifted—from optimizing non-core asset allocation, to maximizing liquidity under wartime pressure. BlackRock Deal Opens the Gates The immediate trigger for this large-scale asset sale was an $11 billion gas facilities leasing agreement signed between a consortium led by Global Infrastructure Partners under BlackRock and Saudi Aramco. According to Bloomberg, after the deal was signed, funds from around the world began calling Saudi Aramco, seeking opportunities to participate. This strong signal of demand has further strengthened the company's management's resolve to pursue larger-scale asset monetization. Saudi Aramco is headquartered in Dhahran, Eastern Province of Saudi Arabia, and company executives promptly began planning the most ambitious privatization scheme in history. Sources say the company intends to retain full control over upstream assets, while remaining open to selling minority stakes in midstream and downstream assets. Exports Hindered, Fiscal Pressure The war has had a direct impact on Saudi Aramco's export operations. Traffic through the Strait of Hormuz has dropped sharply, forcing the company to reroute most shipments via the East-West pipeline to Yanbu Port for export. According to Bloomberg’s vessel tracking data, this adjustment has allowed Saudi Arabia to recover about 60% of its pre-war export volume, but overall export levels remain significantly suppressed. Against this backdrop, Saudi Aramco’s asset sales plan has taken on a more urgent fiscal significance. Hasnain Malik, head of emerging market equities and geopolitical strategy research at Tellimer, said: "Before the cut in expenditure on large projects and the impact of the Iran war on export volumes, this might have been interpreted as a disposal of non-core assets; but now, it will be seen as a move by Aramco and its sovereign shareholders to maximize liquidity." FDI Far Below Target Another key driver for the asset sale is Saudi Arabia’s urgent need to attract foreign capital. Saudi Arabia has set a target to attract $100 billion in foreign direct investment (FDI) annually by the end of this decade, but actual inflows remain far below this level. Rachel Ziemba, Senior Research Fellow at the Center for a New American Security, pointed out, "FDI will continue to face challenges," meaning "the Saudi government needs cash more than ever," and one way is through Aramco’s huge dividends as well as taxes and royalty payments on oil revenues. Ziemba, who also founded the consultancy Ziemba Insights, characterized Aramco’s plan as "a combination of optimizing the balance sheet and deploying capital to energy and other priority infrastructure trends." Turning Physical Assets into Financial Assets This round of privatization is not an isolated event, but a continuation of Saudi Aramco's long-standing asset monetization strategy. The company began streamlining its asset structure and building debt positions well before its IPO in 2019, subsequently selling equity stakes in its oil and gas pipeline network, listing a subsidiary on the Riyadh Stock Exchange, and is currently proceeding with a sale of a domestic refinery stake to a Chinese partner. Salah Shamma, head of equities for Middle East and North Africa at Franklin Templeton, noted that investors are not mainly concerned about individual deals, but "the cumulative effect over time: How much future cash flow is being monetized today, and what this means for Aramco's long-term free cash flow status." For Wall Street, while regional conflict suppresses overall M&A activity, this series of deals by Saudi Aramco provides a scarce premium deal pipeline; for Saudi Arabia, it's a pragmatic move amid wartime fiscal pressure, and also a signal to the outside world that it can still attract international capital despite volatility. Risk Warning and Disclaimer The market has risks; investment requires caution. This article does not constitute personal investment advice, nor does it take into account any individual user’s particular investment objectives, financial status, or needs. 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