“Personally I’m enthusiastic about this step. I believe it is in the interest of the Saudi market, and it is in the interest of Aramco,” he told The Economist.

Prince Muhammed has reportedly held “high-level meetings” on the subject, which focused on whether to sell off some of its petrochemical and other “downstream” firms, as well as listing stock in the parent company, which includes the oil-producing unit.

Muhammad bin Salman Al Saud

According to The Economist, 5pc of Saudi Aramco could initially be floated in Riyadh. That amount would then rise, but the kingdom would retain control.

Saudi Aramco is headquartered in Dhahran, but it has a global reach with interests in exploration, production, refining, chemicals, distribution and marketing.

The company manages more than 100 oil and gas fields in Saudi Arabia and produced 3.4bn barrels of oil in 2013. It also operates the Ghawar Field, the world’s largest onshore oil field, and the Safaniya Field, the world’s largest offshore oil field.

Once the various options for the company have been reviewed, the findings will be presented to the company’s board of directors, which will make recommendations to Aramco’s supreme council.

Mapped: How the world became awash with oil

Due to the company’s size, a stock market listing would provide significant funds for Saudi Arabia just as the kingdom’s economy has come under pressure.

The price of a barrel of Brent crude, Saudi Arabia’s main export, has slumped to below $35 for the first time in more than a decade.

The price of a barrel of Brent crude, Saudi Arabia’s main export, has slumped to below $35 for the first time in more than a decade  Photo: AP

Oil has slumped by more 70pc since July 2014, when prices hit $115 per barrel.

As a result, Saudi Arabia has been forced to slash generous subsidies such as welfare payments and imposing taxes on non-essential items, previously unthinkable moves. It is also considering privatising asserts in the health, education and defence sectors, and plans to transfer $400bn into state funds.

The kingdom, led by King Salman, is also engaged in an feud with Iran following the execution of Shia cleric Nimr al-Nimr. If events escalate, Saudi Arabia could be dragged into another costly conflict, amid an ongoing intervention in Yemen.

Protests against Saudi Arabia have erupted following the execution of Shia cleric Nimr al-Nimr

On Thursday, Iran accused Saudi Arabia of “intentionally” launching an air strike against its embassy in Yemen.

Prince Muhammad told The Economist that a conflict with Iran cannot be allowed to develop, “A war between Saudi Arabia and Iran is the beginning of a major catastrophe in the region,” he said. “…For sure, we will not allow any such thing.”