Saudi Aramco Shares: Everything You Need to Know About the Market's Largest

Saudi Aramco shares are fundamental elements in the Saudi Tadawul market, representing partial ownership in one of the largest oil companies globally. Since its establishment, Saudi Aramco has remained wholly state-owned until it offered part of its shares for public subscription in 2019, marking a historical event in the region. Aramco shares were listed under the symbol 2222 in the main Saudi market index (TASI), becoming significantly weighted in market movements. Aramco plays a pivotal role in the national economy, not only through its substantial revenues that support the public budget but also through its impact on financial market indicators. Any movement in the price of Aramco shares directly reflects on the performance of the general Tadawul index and serves as an indicator of the health of the energy sector in the Kingdom. Furthermore, the Saudi government benefits from Aramco's revenues to support development programs and Vision 2030, increasing the stock's connection to the country's macroeconomic policies.

When Saudi Aramco decided to offer part of its shares for public subscription in December 2019, this move marked a turning point in regional and global financial markets. The initial public offering (IPO) was valued at approximately $25.6 billion, making it the largest IPO in history, surpassing offerings like China's Alibaba. Upon listing, Aramco's market capitalization exceeded the $2 trillion mark, making it one of the largest publicly traded companies globally. The Saudi government still retains a majority stake (over 98%), granting it strategic control over the company's decisions. This IPO enhanced liquidity in the Tadawul market, opened the door to significant foreign and local capital inflows, and contributed to raising the Saudi market's classification within emerging market indices. The listing of Aramco shares is viewed as a pivotal step to support the Kingdom's vision of diversifying the economy and increasing the attractiveness of foreign investment.

The price of Aramco shares is influenced by a range of local and global factors. At the beginning of 2025, the stock recorded levels close to 26.85 SAR, according to recent financial reports, marking the lowest level since August 2024. This decline came amid falling oil prices and some operational factors. Conversely, the stock saw a rise at the start of 2024, nearing 36 SAR in some sessions, highlighting the ongoing volatility associated with global oil market fluctuations. Locally, budget announcements and state economic policies affect the stock's movement, in addition to the company's quarterly results and dividend distributions. On a global scale, any changes in oil prices or production policies by OPEC+ quickly reflect on Aramco shares. It is noteworthy that the stock is often classified among relatively low-risk stocks, considering the support from the Saudi government and its stable dividends.

Aramco's market capitalization is among the highest globally, reaching approximately 5.37 trillion SAR (1.43 trillion USD) in March 2025, based on the stock price of 26.85 SAR and the number of issued shares (around 200 billion shares). This figure places Aramco at the forefront of publicly traded companies worldwide, surpassing most major oil companies and even some tech giants. The enormous market capitalization reflects Aramco's massive operations and proven oil reserves exceeding 260 billion barrels. Additionally, this value grants the stock significant weight in Saudi market indices, such that any substantial movements in the stock price impact the market as a whole. The market capitalization size attracts institutional investors and global investment funds, who prefer high liquidity and relative stability.

The P/E ratio is an important indicator used to measure the relationship between the stock price and annual earnings per share. For Aramco shares, the P/E ratio records relatively low levels compared to similar global oil companies, standing at around 13.5 at the beginning of 2025. This is calculated by dividing the stock price (approximately 26.85 SAR) by the annual earnings per share (around 1.99 SAR). This low ratio reflects Aramco's strong and consistent earnings, indicating that the market values the company rationally considering its high profitability. The earnings per share (EPS) is derived from dividing the annual net profit (398 billion SAR in 2024) by the total number of shares (~200 billion shares), resulting in an output of 1.99 SAR per share. These values are attractive to investors seeking stable returns and strong financial performance.

Aramco shares are known for their generous and regular dividend distribution policy, making them of interest to investors seeking stable cash returns. In 2024, the annual distributions reached approximately 18 SAR per share (4.5 SAR per quarter), equivalent to an annual yield exceeding 6% based on the current stock price. Dividends often align with the company's net profits, as Aramco tends to distribute nearly 100% of its annual profits to shareholders. This policy enhances the stock's attractiveness even during times of oil price fluctuations or declining profits, providing investors with a continuous cash flow. Moreover, the company's continued payment of high dividends despite market challenges indicates the strength of its financial position and management's confidence in the sustainability of its profits.

Saudi Aramco belongs to the integrated energy sector, operating across all stages of the oil and gas industry, from exploration and production (Upstream) to transportation, storage, refining, and petrochemicals (Downstream). The company possesses vast reserves and is characterized by low production costs, enabling it to compete even during periods of declining global prices. Aramco holds strategic stakes in companies like SABIC, expanding its presence in the petrochemical sector. The significant focus on Asian markets (China, India, Japan) allows the company to benefit from increasing demand in those countries. Additionally, Aramco is working on future projects in clean energy such as hydrogen and carbon storage, aligning with the Kingdom's Vision 2030 towards diversifying income sources and reducing reliance on traditional oil.

Saudi Aramco faces competition from major regional and international oil companies such as ExxonMobil, Chevron, Shell, BP, and TotalEnergies, in addition to Gulf companies like Qatar's QP and Kuwait's KOC. What distinguishes Aramco from its competitors is its vast oil reserves, the lowest production costs globally, strong government support, and control over significant market shares in Asia. While most global companies are restructuring their investments towards renewable energy, Aramco maintains its focus on oil and gas with gradual expansion into clean energy projects. Furthermore, the stability of dividends and the size of market capitalization give the company greater confidence among institutional investors. Conversely, Aramco faces common challenges with its competitors, such as oil price volatility and the global shift towards sustainable energy.

During 2024 and 2025, Saudi Aramco witnessed several impactful developments. In March 2025, the company announced its financial results for 2024, showing a decline in net profits of nearly 15%, reaching 398 billion SAR. Nevertheless, the company continued to distribute high quarterly dividends, with distributions of 4.5 SAR per share in the fourth quarter of 2024. Aramco also launched projects to enhance its capabilities in clean energy, including investments in green hydrogen and carbon storage, as well as expanding refining facilities in collaboration with SABIC. On the international expansion front, the company strengthened its partnerships with major importers in Asia and expanded its presence in global oil and petrochemical refineries. The management continues to improve governance and diversify the investor base by opening up to external partners and new strategies.

Aramco shares are influenced by several key factors, the most prominent of which are global oil prices, which are the primary driver of the company's profits, as any rise or fall in the price per barrel directly affects net profit and dividend distributions. Government policies and state support play a crucial role in the stock's stability, in addition to quarterly business results and announcements related to future projects. Geopolitical events such as conflicts or attacks on oil facilities are also significant risks. Furthermore, global trends towards renewable energy and legislative developments affect investors' future outlook on the stock. Therefore, investing in Aramco shares is closely linked to economic developments at both local and global levels.

The Saudi Tadawul market allows local and foreign investors to purchase Aramco shares. Since the stock's listing, it has been included in global emerging market indices (such as MSCI), attracting significant foreign capital inflows. Individuals can purchase the stock through licensed banks or brokerage firms after opening a trading account and searching for the company code (2222) to execute buy or sell orders. The stock is known for its high liquidity and regular distributions, making it a preferred choice for investors seeking stable returns. However, attention should be paid to the specifics of trading in the Saudi market regarding trading hours and regulatory laws. Investors should also follow the company's and sector's financial news to make informed decisions.

Saudi Aramco aims to keep pace with global transformations in the energy sector by investing in sustainable projects and developing new technologies. The company has launched initiatives in green hydrogen and carbon storage, in addition to enhancing its capabilities in local and international oil refineries. It has also entered into strategic partnerships with global companies to increase fuel and chemical production more efficiently. These moves align with Vision 2030's goals to diversify national income sources and reduce reliance on traditional oil. Although the majority of the company's revenues still come from oil and gas, Aramco is laying the foundations for a transition towards clean energy, which may give it a competitive advantage in the future as global demand changes. The company is expected to continue expanding its investments in this area in the coming years.

With the complexity of the financial landscape and the multitude of factors influencing the stock market, the importance of consulting a licensed financial advisor before making any investment decisions in Aramco shares or other stocks becomes evident. A financial advisor assists investors in analyzing financial data, assessing risks, and determining the suitability of the investment for personal goals and risk tolerance. They also provide advice on asset allocation and diversifying the investment portfolio in line with market variables. Therefore, all investors, especially newcomers, are advised not to rely solely on general information or quick analyses but to seek specialized licensed opinions to ensure informed and responsible investment decisions that comply with the regulatory framework of the Tadawul market.