Saudi Arabia to modify financial strategy due to Trump - WSJ

A shifting of the political plates in the United States has led to a reconsideration of Saudi Arabia's financial strategy, according to a report from the Wall Street Journal.

With the election of Donald Trump to the White House, as well as the introduction of a new law which allows US terror victims to take up legal cases against the country, officials in the kingdom are keen to reevaluate their relationship with the US, according to people familiar with the matter.

Investments in the sovereign wealth fund of Saudi Arabia have been put on hold until the implications of the new bill and Trump's reaction to it.

Aramco, the world's biggest oil-producer, is being prepared for a flotation in 2018 and the New York Stock Exchange is seen to be the ideal place for such a large IPO, with it expected to fetch mire than $100bn.

The legislation passed in September of this year allowed victims of the 9/11 attack to seek damages from the Saudi government, which have been accused by the same victims of supporting the attackers on that day.

It is unclear whether Trump has any intentions of modifying the law introduced in September, but he recently chose Saudi-friendly former general James Mattis as his defence secretary, indicating that he may well seek to patch up relations.

Many Saudi companies have stakes in US oil companies and refineries, and will be keen to consolidate the recent agreement to cut oil global production levels, which is expected to come into force in 2017.