Aramco Price: Everything You Need to Know About Saudi Aramco Stock

Saudi Aramco is considered one of the largest integrated oil and gas companies in the world in terms of reserves, production, and market value. The company was established in 1933 as the Arabian American Oil Company and gradually transitioned to full state ownership by Saudi Arabia by 1980. In 2019, Aramco entered a new historical phase when it offered about 1.5% of its shares for public subscription in the Saudi financial market (Tadawul), under the trading symbol '2222'. This initial offering was the largest globally, raising significant liquidity for the Saudi market and making Aramco stock one of the pillars of the main market index (TASI). Aramco plays a pivotal role in the national economy, representing a major source of income for the Kingdom and directly affecting the balance of payments, government spending, and the strength of the Saudi riyal. Its position in the MSCI Emerging Markets Index makes it of interest to both global and local investors, increasing the stock's liquidity and enhancing its price volatility in response to economic and political events.

The price of Aramco has undergone significant transformations since its initial offering in December 2019, when the stock was priced at 32 Saudi riyals. During the first few months, the price fluctuated up and down, influenced by internal and external factors, the most notable of which were global oil price fluctuations, the COVID-19 pandemic, and changes in global energy demand. At the peak of oil prices in 2022, the stock price exceeded 38 riyals, raising Aramco's market value to over 8 trillion Saudi riyals. By 2024, the stock experienced corrective waves with falling oil prices, reaching as low as 30 riyals at times. In May 2024, the secondary offering was launched at a price range between 26.7 and 29 riyals, allowing new investors to enter. By the fall of 2024, the stock rose again towards 35 riyals, before stabilizing mostly in the range of 30-40 riyals by mid-2025. These changes reflect the stock's high sensitivity to oil prices, regulatory policies of the Capital Market Authority, and geopolitical developments.

The movement of Aramco's price is influenced by several key factors, including: 1) Global oil prices, as the company's operating profit is directly linked to Brent crude prices and futures contracts; 2) OPEC+ decisions regarding oil production, as any reduction or increase in production affects Aramco's revenues and thus its stock price; 3) Quarterly financial results, as any announcement of record profits or profit declines leads to immediate price movement; 4) Cash distributions, as the annual yield on the stock is seen as a major incentive for investors seeking regular income; 5) Political and economic developments, such as regional crises or international trade tensions that may raise or lower oil prices; 6) Policies of the Saudi Capital Market Authority, such as imposing volatility limits and temporary trading halts, which aim to protect investors from sharp declines and support stock stability. All these factors interact to determine the stock's path in the short and medium term.

Aramco's financial indicators are among the strongest globally. In terms of market value, it ranges between 7 and 8 trillion Saudi riyals in the first half of 2025, making it the second-largest company in the world. The price-to-earnings (P/E) ratio typically ranges between 5 and 7, which is low compared to many large companies and reflects strong annual profits (net profit in 2024 was about $106.25 billion). The dividend yield typically ranges between 4% and 6% annually, which is an attractive yield in the Saudi market. Aramco also features a high dividend payout ratio (approximately 75% of annual profits), which supports investor confidence in stable income flow. It is worth noting that these figures are subject to periodic changes based on oil prices, business results, and regulatory policies.

Aramco stock (2222) and Hail Cement stock (3001) are examples of sector differences in the Saudi financial market. Aramco is classified in the energy and petrochemicals sector, while Hail Cement belongs to the building materials sector. The difference is clear in financial indicators: for example, the price of Aramco stock in mid-2025 was about 35 riyals, while Hail Cement's stock price ranged between 40 and 50 riyals. Aramco's market value exceeds 7 trillion riyals, while Hail Cement does not exceed a few billion riyals. Additionally, Aramco's P/E ratio is low (5-7) compared to a higher figure for Hail Cement (which can reach 20). Aramco's dividend yield is higher and more consistent, while Hail Cement's distributions tend to fluctuate based on the activity of the construction sector. This comparison highlights the importance of understanding the sector before analyzing the stock, as each sector is subject to different dynamics.

Aramco's quarterly results reflect the company's performance in facing market challenges and are among the main drivers of stock price changes. In 2024, for instance, Aramco announced quarterly profits of $27.5 billion in the third quarter, a decline of about 15% compared to the same period the previous year, leading to a slight drop in stock price. In the first quarter of 2025, the profit was $26 billion (a 4.6% year-on-year decline). These data are closely monitored by investors as they reveal the company's ability to maintain strong profit margins despite oil price fluctuations. Additionally, announcements of quarterly cash distributions and new policies regarding investments or offerings directly affect market expectations and price movements.

The performance of Aramco stock is heavily dependent on fluctuations in global oil prices. When oil prices (Brent or West Texas) rise, this increase is directly reflected in Aramco's profits, often leading to a rise in stock price. Conversely, any decline in prices leads to reduced revenues, negatively impacting the stock price. In 2022, oil prices rose to historic levels with increased global demand, pushing Aramco's stock above 38 riyals. However, in late 2024 and early 2025, declines in oil prices reduced the company's profits, resulting in a drop in stock price to the range of 30-35 riyals. Additionally, OPEC+ decisions play a crucial role, as any agreement to cut or increase production has immediate effects on the market and stock price.

Aramco is committed to a high and stable cash dividend policy, pledging to distribute about 75% of its annual net profits to shareholders. In 2024, total dividends amounted to approximately $75 billion (around 281 billion Saudi riyals), distributed in quarterly payments. This approach makes Aramco stock attractive to investors seeking regular income and provides additional confidence in stock stability. The annual dividend yield typically ranges between 4% and 6%, based on the current stock price and distribution size. It is noteworthy that this ratio is considered high compared to many local and global stocks, making Aramco a preferred long-term investment option from the perspective of stable income.

Aramco stock enjoys very high liquidity in the Saudi Tadawul market, often representing more than 10-20% of the total daily trading volume during peak periods. This large volume of liquidity reflects the confidence of local and international investors in the company and gives the stock the ability to absorb temporary shocks without excessive volatility. Additionally, the stock is listed in global indices such as MSCI, enhancing the flow of foreign liquidity to it. The secondary offering in May 2024 contributed to increasing the number of shares available for trading and attracting additional liquidity from the private sector, supporting price stability and limiting the impact of large individual trades. High liquidity means ease of entry and exit for investors without significantly affecting the price.

Regulatory and political events play an important role in determining the trajectory of Aramco stock. For example, the Saudi Capital Market Authority implemented trading halt mechanisms when the stock fell below a certain limit, as happened in late 2023, to mitigate price volatility and protect investors. On the other hand, geopolitical events in the Gulf region, such as regional crises or tensions in global energy markets, directly affect oil prices and thus Aramco stock. Government decisions regarding the privatization of additional parts of the company or investments in new sectors such as hydrogen and renewable energy also have clear impacts on investor expectations and price movements.

Aramco stock is a fundamental component of the main Saudi market index (TASI), holding significant weight in daily index movements. The stock is also included in emerging market indices such as MSCI, which has allowed large international investment funds to enter the Saudi market. This listing has enhanced the global standing of the Saudi market, increasing liquidity and the number of foreign investors. Practically, any change in Aramco's price is immediately reflected in the index's movement, making the stock a focal point for all market observers. Additionally, the stock's weight supports index stability in cases of sudden declines in smaller sector stocks.

In May 2024, the Saudi Tadawul market witnessed a significant event with the launch of the secondary offering of Aramco shares, where 1.545 billion additional shares were offered at a price range between $7.12 and $7.73 (i.e., between 26.7 and 29 Saudi riyals). This offering allowed the private sector and local and foreign institutions to increase their ownership in the company, raising substantial liquidity to support Vision 2030 projects. The impact of the offering was twofold: on one hand, it increased market depth and the number of traders in the stock, and on the other hand, it expanded the shareholder base and stabilized the price within an acceptable range. It also contributed to enhancing transparency and financial disclosure, raising the level of corporate governance in line with global best practices.

Aramco is no longer focused solely on crude oil production and export; it has expanded in recent years into advanced sectors such as petrochemicals (through acquiring a major stake in SABIC), natural gas production, and developing hydrogen and clean fuel projects. This diversification aims to reduce reliance on crude oil alone and ensure revenue sustainability amid global shifts towards renewable energy. Additionally, the company's investments in global projects and partnerships with international energy companies provide it with a long-term competitive edge. For Aramco stock, this diversification helps mitigate risks and increases the stock's attractiveness to investors seeking stability and future profitability.