The Economy of Saudi Arabia
Saudi Aramco: The World's Most Valuable Oil Company
Aramco is state-owned, hugely profitable and became a listed company in 2019 in the world's largest IPO at the time.
One firm dominates the economy.
Scale
Aramco produces several million barrels daily at some of the lowest costs in the world.
Listing
In December 2019, a small part of Aramco was sold on the Saudi stock exchange, raising about $25 billion.
Dividends
Large dividends flow to the state budget.
Downstream
Aramco is also expanding into refining and chemicals abroad.
Low-cost oil
Extracting a barrel costs a few dollars, so Aramco stays profitable even at low prices.
Assuming all oil is equally costly
Costs vary greatly.
Key takeaways
- Aramco is state-owned.
- It listed in 2019.
- Costs are very low.
- Dividends fund the state.
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