Saudi Aramco is an oil company in Saudi Arabia. It’s actually the largest company in the world if you look at market capitalisation. In the 2018 financial year, it made a gross profit of US$105 billion (about £80 billion).
It produces around 10% of the world’s oil with more than 250 billion oil drums and access to some of the largest oil fields in Saudi Arabia.
What are some of the challenges for Saudi Aramco?
There are a couple of key challenges that Saudi Aramco and other oil companies face. The first is the increase in popularity of sustainability. People are looking at ways to reduce their carbon footprint, and using more renewable energy sources is one of the most popular ways.
Another is the fluctuation in oil price. Oil companies rely on the price of oil in order to be successful. As there are a lot of uses for oil worldwide, this means it can fluctuate a bit.
Can I buy shares in Saudi Aramco?
Not exactly. Sorry to disappoint but it’s not exactly a walk in the park, unless you live in Saudi Arabia, that is. As Saudi Aramco is on Tadawul, the stock market of Saudi Arabia, it’s hard for UK investors to invest in it. This is because Tadawul only allows established institutional foreign investors. This means that your average UK investor can’t access it.
But just because you can’t invest directly in Saudi Aramco, it doesn’t mean you can’t invest in other oil companies.
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All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.