Saudi Aramco is the largest integrated oil company in the world, playing a pivotal role in the Saudi economy and global energy markets. Since its establishment in 1933, Aramco has evolved to become the highest-valued company in Saudi Arabia and one of the largest publicly traded companies globally. The company was listed on the Saudi financial market (Tadawul) under the symbol 2222, with a limited portion of its shares traded since the initial public offering in 2019. Aramco has a wide impact on the general Tadawul index and is known for its ability to generate massive profits and generous dividends for shareholders, making it a focal point for both local and international investors. In this article, we highlight Aramco's financial performance in recent years, review its market value, profitability indicators, dividend trends, and the company's future outlook in the changing oil and gas sector. We will rely on the latest official data, adhering to the regulations of the Saudi Capital Market Authority and emphasizing the importance of consulting a licensed financial advisor before making any investment decisions.
History of Aramco and Its Development in the Saudi Economy
Saudi Aramco was founded in 1933 following a concession agreement between the Kingdom of Saudi Arabia and the American Standard Oil Company to discover oil. Since then, Aramco has transformed from a small exploration company into a global giant in the energy sector. By the mid-20th century, Aramco was fully under the control of the Saudi government, marking a new chapter of expansion and growth. The company has played a vital role in supporting the national economy, with crude oil exports representing the largest share of state revenues. With the launch of Vision 2030, Aramco has become central to the Kingdom's plans to diversify national income sources through expansion into petrochemical and renewable energy industries. The IPO in 2019 marked a significant shift, allowing local and foreign investors to participate in one of the world's largest companies.
Ownership Structure and Listing on Tadawul
The Saudi government is the main owner of Aramco, holding over 98% of the shares, while approximately 1.5% of the capital is traded on the Saudi financial market (Tadawul) under the symbol 2222. The company was listed in December 2019 after the largest IPO in history, raising nearly $25.6 billion. This listing allows individual and institutional investors to participate in the company's growth while maintaining state control and key voting rights. Aramco's stock is characterized by high liquidity due to its massive size and interest from global investors, and it has become a cornerstone of the Saudi Tadawul index, impacting the entire market's movement.
Aramco's Market Value and Its Role in Saudi Market Indices
Aramco's market value is the highest in Saudi Arabia, reaching approximately 6.79 trillion SAR ($1.8 trillion) by the end of 2024, before declining to around 5.89 trillion SAR ($1.57 trillion) by the end of 2025. This change in market value reflects the impact of global oil price fluctuations and capital market movements. Aramco ranks first locally and eighth globally in terms of market capitalization, making it a fundamental pillar in Saudi market indices. Any movement in the company's stock price leads to a noticeable change in the overall market index, influencing decisions made by investors and financial institutions.
Analysis of Aramco's Stock Performance on Tadawul
Aramco's stock (symbol 2222) has experienced moderate fluctuations in recent years. In 2024, the stock price ranged between 28 and 30 SAR, while it fell to levels of 24-26 SAR by the end of 2025. This decline is attributed to factors such as global oil demand forecasts, crude price movements, and changes in OPEC+ production policies. Despite these fluctuations, Aramco's stock remains one of the most liquid stocks in the Saudi market, attracting interest from investors seeking relative stability and regular dividend yields. It is important to note that any slight change in the stock price reflects a significant change in market value due to the company's size and the large number of its shares.
Key Financial Indicators: Revenues, Profits, and P/E Ratio
By the end of 2025, Aramco achieved annual revenues of approximately $448.65 billion, with a net profit of around $97.36 billion. The P/E ratio for Aramco is relatively low compared to most major global companies, ranging between 8 and 10 times in recent years, and could reach up to 16 times depending on profit fluctuations and market value. This indicator reflects the strength of the profits generated by the company relative to its market value and serves as an attractive measure for investors who prefer high-profit companies. Profitability indicators fluctuate with oil price movements and global demand, making it essential to monitor the company's results periodically.
Dividend Policy and Share Yield
Aramco is committed to a generous and stable dividend distribution policy for shareholders. Since the IPO, the company has announced its intention to distribute no less than $75 billion annually, equivalent to about 281 billion SAR. Dividends are distributed quarterly, and the annual yield typically ranges between 4% and 7% based on the stock price in the market. In the years 2024-2025, total distributions were around 2.0-2.4 SAR per share annually, giving the stock a competitive advantage in terms of periodic yield. Additionally, the company may announce additional distributions in the event of exceptional profits, enhancing the stock's appeal to investors seeking steady income.
Oil and Gas Sector: Aramco's Position and Market Dynamics
Aramco holds a strategic position in the integrated oil and gas sector, covering all stages of the industry from exploration and production to transportation, refining, and petrochemicals. The company's performance is directly affected by global oil prices and production policies in OPEC+, as well as international trends toward renewable energy. In 2024-2025, the sector faced challenges related to slowing global economic growth, environmental pressures, and increased competition from alternative energy sources. Aramco continues its efforts to expand clean energy projects such as hydrogen while enhancing its ability to produce conventional oil to meet changing global demand.
Aramco's Main Competitors at Local and Global Levels
Aramco competes with major global oil companies such as ExxonMobil, Chevron, Shell, BP, TotalEnergies, and PetroChina, as well as regional companies like ADNOC and Qatar Petroleum. These companies compete in exploration, production, refining, and petrochemicals. Locally, Aramco has complete control over the Saudi oil market, while there is indirect competition in the petrochemical sector with companies like SABIC and some renewable energy companies. Despite the strong competition, Aramco benefits from massive reserves, high technical capabilities, and ongoing government support, giving it a strategic advantage in most markets.
Aramco's Future Projects and Strategic Directions
Aramco is implementing an ambitious strategy to increase production capacity to 13 million barrels per day by 2027, in addition to expanding clean energy projects such as blue and green hydrogen. The company is also considering the IPO of new units, including pipelines and logistics services, to diversify income sources. Concurrently, Aramco continues to invest in carbon capture and storage technologies and develop international partnerships in refining and renewable energy. These steps aim to strengthen the company's position in the global energy market and achieve long-term sustainability.
Recent Developments and News Impacting Aramco's Results
Aramco has witnessed several significant developments in 2024 and 2025, most notably the announcement of strong financial results despite a slight decline in profits due to global production cuts. The stock faced price fluctuations with changing global oil demand, and the company announced plans to increase production and its readiness to expand capacity in line with market changes. Aramco has also signed strategic agreements with global companies to enhance cooperation in industry, petrochemicals, and clean energy. These developments reflect the company's resilience and ability to adapt to challenges and fluctuations in global energy markets.
Aramco's Impact on the Saudi National Economy
Aramco forms the backbone of the Saudi economy, contributing approximately 70% of the state's general budget revenues through oil revenues, taxes, and profits. The company's stock represents a significant portion of the Saudi financial market index, making its performance directly impactful on the national economy. Aramco also supports national development programs and provides massive job opportunities across various sectors, in addition to its role in attracting foreign investments to the Kingdom. Any change in the company's profits or strategic directions directly reflects on the financial and economic situation of the country, highlighting the company's importance as a key player in sustainable development.
Sustainability Trends and Environmental Responsibility at Aramco
Aramco places increasing importance on sustainability and environmental issues, launching initiatives to reduce carbon emissions and develop clean energy. Among its prominent projects is the carbon capture and storage initiative at the Jubail field and expanding hydrogen use in refining operations. The company has also entered into partnerships with European and American companies to enhance research and development in renewable energy technologies. These efforts aim to reduce Aramco's environmental footprint and comply with international sustainability standards, aligning with Saudi Vision 2030 and sustainable development goals.
How to Trade Aramco's Stock on the Saudi Financial Market
Investors can buy and trade Aramco's stock on the Saudi financial market (Tadawul) under the symbol 2222. This requires having a trading account with a licensed broker, considering the restrictions on foreign ownership of shares. The stock is traded during official stock exchange working hours and is characterized by high liquidity and large trading volume. The Capital Market Authority always advises reviewing official information and verifying data before executing any transaction. Investors should also review quarterly earnings reports and the company's announced policies to ensure decisions are based on accurate and reliable information.
Aramco in the Global Energy Landscape: Partnerships and International Deals
Aramco plays a prominent role in the global energy market by entering into strategic agreements and partnerships with major international companies. For example, the company has signed long-term supply contracts with Asian and European companies and enhanced technical cooperation with American firms in petrochemicals and renewable energy. Aramco also contributes to establishing refineries and joint projects in India and Singapore, enhancing its presence on the international stage. These partnerships aim to ensure the stability of Saudi oil exports, diversify income sources, and develop new technologies to keep pace with global energy transitions.
Conclusion
Saudi Aramco remains one of the most prominent players in the global oil market, enjoying a strategic position that makes it a cornerstone of the Saudi economy and a key indicator of Tadawul market movement. Through its strong financial performance, stable dividend policies, and ambitious directions toward sustainability and renewable energy, Aramco continues to play a leading role in the energy sector and the national economy. However, it is essential for those interested in investing in Aramco's stock or following its market developments to always refer to official sources and consult a licensed financial advisor before making any investment decisions. The SIGMIX platform provides neutral analyses and accurate data to help investors understand the market, but consulting specialists remains a necessary step for managing risks and achieving financial goals.
Frequently Asked Questions
Saudi Aramco is the largest integrated oil company in the world, founded in 1933 and owned by the Saudi government with over 98% ownership. Aramco plays a pivotal role in the national economy, with oil exports representing the largest part of state revenues and directly impacting the general budget and economic development. It also contributes to Vision 2030 programs by diversifying investments and developing the renewable energy sector.
Aramco's market value is calculated by multiplying the stock price by the number of issued shares (approximately 241.85 billion shares). By the end of 2024, the market value reached 6.79 trillion SAR, declining to 5.89 trillion SAR by the end of 2025. This value reflects the company's size and its influence in the Saudi and global markets, significantly affecting the Tadawul index.
Aramco's stock price is influenced by several factors, including global oil prices, energy demand, the company's financial results, OPEC+ production policies, and geopolitical events. Additionally, global economic forecasts and the company's announced future projects also directly or indirectly affect the stock price.
The P/E ratio is the ratio of market value to annual net profits. For Aramco, this ratio ranges between 8 and 16 in recent years, indicating that the company generates substantial profits relative to its market value. A low P/E reflects the stock's attractiveness to investors seeking stable and high returns.
Aramco distributes quarterly dividends and is committed to a distribution policy of no less than $75 billion annually. During 2024-2025, the annual yield per share ranged between approximately 4% and 7%. The company may announce additional distributions in the event of surplus profits, making the stock appealing to investors seeking periodic income.
Aramco's future projects include increasing production capacity to 13 million barrels per day, investing in blue and green hydrogen, developing carbon capture and storage technologies, and considering the IPO of new units such as pipelines and logistics services. These projects aim to enhance sustainability and diversify income sources.
Aramco competes with global companies such as ExxonMobil, Shell, BP, and TotalEnergies, as well as regional companies like ADNOC and Qatar Petroleum. These companies compete in production, refining, and exporting. Additionally, Aramco faces increasing competition from renewable energy companies amid the global shift toward clean energy sources.
Aramco's stock can be purchased through the Saudi financial market (Tadawul) via a licensed financial broker. A trading account must be opened, and buy and sell orders should be placed during official trading hours. It is advisable to review the company's reports and financial data before making any decisions, along with consulting a licensed financial advisor.
Since Aramco represents the largest listed company in the Saudi market in terms of market capitalization, any change in its stock price significantly affects the overall Tadawul index. Aramco's stock is a key driver of Saudi market performance, influencing the decisions of investment funds and financial institutions.
Aramco aims to reduce carbon emissions and promote clean energy projects such as hydrogen and carbon capture. The company has launched partnerships with global institutions to develop renewable energy technologies and is committed to contributing to Saudi Arabia's Vision 2030 sustainability goals.
Aramco's profits are directly dependent on global oil prices. Rising prices enhance revenues and profits, while falling prices or increased global supply lead to revenue declines. The company manages these fluctuations through production management and investment diversification.
Investing in shares of major companies like Aramco involves risks related to market fluctuations and oil prices. Consulting a licensed financial advisor helps investors assess risks, analyze financial data, and make informed investment decisions that align with their financial goals and risk tolerance.