Aramco Shares: Everything You Need to Know About Aramco Stock in the Saudi

Saudi Aramco, officially known as the 'Saudi Arabian Oil Company', is one of the largest integrated oil companies globally, mostly owned by the Saudi government. Founded in the 1930s, the company has evolved to become the leading player in the energy, oil, and gas sector in the Kingdom and worldwide. The Saudi market underwent a significant transformation with the listing of Aramco shares on the Tadawul in December 2019, where approximately 1.5% of the company's total shares were offered in the largest IPO ever. This listing enhanced the depth of the Saudi stock market, increased liquidity, and attracted both foreign and local investments, while also bolstering the Saudi market's position among the largest regional and global markets.

Aramco's stock is characterized by its significant weight in the overall index of the Saudi market, as the stock's performance often reflects the trends of the Saudi oil sector as a whole. Given the company's massive market capitalization, any movement in Aramco's stock price directly and noticeably affects the overall index and investor confidence in the market. The majority of Aramco's shares remain under state ownership, reflecting the continued government control over the company's strategic policies and the national energy sector.

Aramco's stock experienced notable fluctuations in 2024 and 2025, linked to changes in global oil prices and general economic trends. At the beginning of 2024, the stock price hovered around 30 Saudi Riyals, before rising to levels of 36–38 Riyals during peak oil prices, then returning to the 33 Riyals range by the end of the year. As 2025 began, the price generally ranged between 34 and 40 Riyals, influenced by international oil market fluctuations. These movements reflect Aramco's high sensitivity to changes in crude oil prices, where rising demand or reduced global production drives the stock up, while periods of declining prices lead to its downturn.

In terms of trading volume, Aramco's stock remained among the highest in the Saudi market, attracting significant interest from local and foreign investors. The high liquidity and size of the company make it an attractive point for large investment portfolios and financial institutions. This dynamic has made Aramco's stock a key indicator for monitoring capital movement and investment in the Saudi market, especially with the increasing role of foreign investors after the market was opened to them.

Analyzing financial indicators is one of the most important aspects of understanding Aramco's stock position in the Saudi market. Among the most notable indicators:

- Stock Price: Ranged between 30 and 40 Riyals during 2024–2025, with daily fluctuations linked to oil market performance.
- Market Capitalization: Reached approximately $2.253 trillion (over 8 trillion Saudi Riyals) by early 2025, making it the second-largest publicly traded company globally.
- Price-to-Earnings Ratio (P/E): Varies based on the company's results, typically ranging between 10 and 20 according to annual earnings and stock price. A lower ratio reflects Aramco's strong earnings relative to its stock price.
- Dividends: Aramco is known for its commitment to generous periodic cash distributions, with the company distributing annual dividends of around 15 Riyals per share, representing a cash yield of between 4% and 6% of the average stock price.

These financial indicators make Aramco's stock a focal point for investors seeking stability and periodic returns, especially amid global market fluctuations.

Saudi Aramco plays a central role in the national economy, being the primary source of government revenue from the oil and gas sector. The company significantly contributes to the GDP and covers a large portion of the government budget through taxes and profits. The performance of Aramco's stock supports the stability of the Saudi financial market, given its weight in the overall index and its impact on market liquidity and investor confidence.

Moreover, Aramco's major projects contribute to the development of national infrastructure and enhance sectors such as petrochemicals and renewable energy. Additionally, the company's investments help create job opportunities and develop various sectors linked to the oil value chain. For this reason, Aramco's stock is a mirror reflecting the state of the national economy and its future directions, making monitoring its performance essential for both investors and decision-makers.

Aramco is renowned for its regular and attractive dividend policy, committing to semi-annual cash distributions to shareholders, often exceeding the targeted minimum of 75 billion Riyals every six months. In recent years, Aramco announced annual dividends of around 15 Riyals per share, resulting in a cash yield ranging between 4% and 6% of the average stock price in the market.

The distribution policy is based on the company's operational results and profits achieved during each period, while maintaining stable distributions even during periods of oil price volatility. This policy enhances the attractiveness of Aramco's stock to investors seeking steady income and periodic returns, and supports long-term shareholder confidence. It is important to note that future dividends are not guaranteed and may change based on the company's results and market conditions.

The performance of Aramco's stock is closely linked to fluctuations in global oil prices, as crude oil is the primary source of the company's revenues and profitability. When oil prices rise due to increased demand or production cuts by OPEC+, Aramco's profits and market value often increase, positively reflecting on the stock price. Conversely, falling prices, as seen during certain periods in 2023 and 2024, lead to declining profits and pressure on the stock price.

It is noteworthy that Aramco's stock is also influenced by other factors such as Saudi production decisions, shifts in global environmental policies, and geopolitical disruptions. Therefore, monitoring developments in the oil market is essential for understanding the fluctuations of Aramco's stock and anticipating its future performance within permissible limits without providing direct price forecasts.

Aramco operates within the integrated energy sector, which includes exploration, production, refining, petrochemicals, and fuel logistics distribution. With its vast reserves and operational capabilities, the company enjoys a leading position in the sector both locally and internationally. Aramco does not face strong direct competition within the Kingdom, but it competes globally with oil giants such as ExxonMobil, Chevron, Shell, BP, Sinopec, and Rosneft.

Regionally, national oil companies in the Gulf such as ADNOC (UAE) and Qatar Energy are significant competitors. In the petrochemical sector, Aramco holds a strategic stake in SABIC, enhancing its integration in the value chain and expanding its product range and markets. This competitive position gives Aramco flexibility in facing market fluctuations and the ability to adapt to global trends towards renewable energy and sustainability.

Aramco continued to execute massive strategic projects during 2024–2025 aimed at enhancing its leadership and diversifying its income sources. Among the most notable projects are the expansion of refining and petrochemical operations both domestically and internationally, and investment in carbon capture technologies and low-carbon fuel production, aligning with the Kingdom's environmental sustainability goals.

The company launched major projects in hydrogen and blue ammonia, particularly in the NEOM area in partnership with local and global companies. It also continued to develop international partnerships with Asian, European, and American companies for technology exchange and market expansion. Aramco allocated substantial capital budgets exceeding $35 billion in these sectors, reflecting its commitment to sustainable growth and enhancing its position in the global energy sector.

Aramco witnessed a series of significant events during 2024–2025 that impacted its stock performance. Among the most important developments was the company's announcement of varied quarterly earnings results depending on oil price fluctuations, with a net profit of $26.9 billion recorded in the third quarter of 2025, compared to $27.5 billion in the same period of the previous year. The company continued to distribute generous cash dividends, with slight increases above the targeted minimum.

In terms of investments, Aramco enhanced its expansion in clean energy projects and signed strategic financing and acquisition agreements, including allocating part of SABIC shares as collateral for financing its petrochemical expansions. The company also adhered to OPEC+ decisions regarding production cuts to support price stability and launched new initiatives in green oil and hydrogen, enhancing its ability to adapt to market changes.

The Saudi stock market has undergone a series of reforms that have gradually opened the door to foreign investors. These steps included facilitating market entry procedures and allowing the purchase of shares in major companies like Aramco through accredited financial brokers. It is important to note that there are regulations on foreign ownership in Saudi companies, where foreign ownership typically does not exceed 49% of capital, with some exceptions based on sectoral policies.

Facilitating foreign investor entry has enhanced market liquidity and increased trading volume on Aramco's stock, while also contributing to diversifying the investor base and improving pricing efficiency in the market. However, the state still retains the largest share of the company's stock to ensure the stability of its long-term strategies.

Aramco's stock is influenced by several key factors in addition to oil prices, including global geopolitical developments, OPEC+ production policies, quarterly earnings results and distributions, and the level of economic stability in the Kingdom. Global trends towards renewable energy and regulatory changes also affect the company's valuation and investor outlook.

Political tensions and international sanctions, along with changes in global oil demand, are external factors that may impact Aramco's stock performance. Internally, the stability of Saudi financial and economic policies plays an important role in supporting investor confidence and stock price stability. Therefore, it is essential to continuously monitor these factors to understand the dynamics of the stock within both the local and global markets.

Despite Aramco's financial strength and global position, its stock faces a range of future challenges and risks. The most prominent of these risks are fluctuations in global oil prices that may directly affect the company's profits and distributions. Additionally, global shifts towards clean energy and carbon emission reduction policies may pose challenges to future oil demand.

Regulatory changes, geopolitical risks, and global economic fluctuations are all factors that may affect the company's performance and stock price. Furthermore, the heavy reliance on the oil sector as a primary source of revenue presents a challenge amid the gradual shift towards a diversified economy. Therefore, investors should carefully study these risks and follow diversification strategies rather than relying solely on one stock.

Aramco stock data can be monitored periodically through the Saudi financial market platforms (Tadawul), in addition to specialized financial websites such as Argaam and Bloomberg. These platforms provide updated information on stock price, trading volumes, quarterly financial data, and cash distributions.

Reports issued by the company itself, which include announcements of financial performance, distribution plans, and new investments, can also be referred to. Monitoring economic news and energy sector analyses from reliable sources such as AP News and Bloomberg is essential for understanding developments affecting stock performance. It is always advisable to rely on official and accredited sources for accurate and reliable information.