Saudi Aramco Shares Inch Up Despite Net Profit Drop

Saudi Aramco President and CEO Amin H. Nasser. (SPA file photo)
Saudi Aramco President and CEO Amin H. Nasser. (SPA file photo)
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Saudi Aramco Shares Inch Up Despite Net Profit Drop

Saudi Aramco President and CEO Amin H. Nasser. (SPA file photo)
Saudi Aramco President and CEO Amin H. Nasser. (SPA file photo)

Saudi Aramco on Tuesday reported a 23% fall in third-quarter net profit on the back of lower oil prices and volumes sold, marginally beating analyst estimates and helping prop up its shares in early trade.

Aramco issued the results of the third quarter of 2023, which show that the company's net income amounted to SAR122.2 billion ($32.6 billion) in the period, compared to SAR159.1 billion ($42.4 billion) in Q3 of 2022.

Cash flow from operating activities amounted to SAR117.6 billion ($31.4 billion) in Q3 of 2023, compared to SAR202.5 billion ($54.0 billion) in Q3 of 2022, and free cash flows1 reached SAR76.3 billion ($20.3 billion) in Q3 of 2023, compared to SAR168.6 billion ($45.0 billion) in Q3 of 2022.

The gearing ratio1 reached -7.6% on September 30, 2023, compared to -7.9% at the end of 2022, the Q2 of 2023 base dividend of SAR73.2 billion ($19.5 billion) was paid in the third quarter, and the Q3 of 2023 base dividend of SAR73.2 billion ($19.5 billion) will be paid in Q4.

The report also shows that the first performance-linked dividend distribution of SAR37.0 billion ($9.9 billion) was paid in Q3, and the second distribution of SAR37.0 billion ($9.9 billion) will be paid in Q4, based on the combined full-year 2022 and nine-month 2023 results.

The company's strategic expansion continues with agreement on the first international liquefied natural gas (LNG) investment; the company plans to enter South American market through a downstream retail acquisition.

The report shows that Saudi Aramco increases raw gas processing capacity by 800 million standard cubic feet per day (mmscfd), including approximately 750 mmscfd of sales gas processing capacity, through Hawiyah Gas Plant expansion, and that the collaboration with Stellantis indicates eFuel compatibility with 24 engine families in Europe.

In a press statement, Aramco President and CEO Amin H. Nasser said: "Our robust financial results reinforce Aramco’s ability to generate consistent value for our shareholders, and we continue to identify new opportunities to evolve our business and meet the needs of customers."

He added that during the third quarter, Aramco agreed to make its first international investment in liquefied natural gas (LNG) to capitalize on rising LNG demand, and announced its intention to enter the South American retail market. These planned investments, Nasser said, demonstrate the scale of "our ambition, the broad scope of our activities, and the disciplined execution of our strategy".

He added that the company's progress will "complement both our upstream capacity expansion and our growing downstream presence."

Nasser reiterated Aramco's intention to continue investing across the hydrocarbon chain, "leveraging cutting-edge technologies to optimize operations and advance the development of emerging energy solutions."

"It is an approach rooted in the company's belief that a balanced and realistic energy transition plan should consider the needs of all geographies to avoid disparities between global energy consumers," he said.



Saudi Arabia Turns Potato Farming Challenge into Export Opportunity

Saudi Arabia Turns Potato Farming Challenge into Export Opportunity
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Saudi Arabia Turns Potato Farming Challenge into Export Opportunity

Saudi Arabia Turns Potato Farming Challenge into Export Opportunity

In the deserts of Hail in northern Saudi Arabia, where rugged mountains border a climate that turns mild in summer and biting in winter, an unlikely agricultural success story has emerged.

From sandy soil that appears unforgiving at first glance, uniform potatoes are harvested to meet the exacting standards of local and international markets, supplying global food companies and contributing to the growth of a thriving export industry.

Grown not on traditional farmland but in a desert landscape long constrained by water and energy shortages, the crop has become a case study in how agricultural innovation and industrial sustainability can converge, positioning Saudi Arabia among the world's exporters of potatoes and processed potato products.

Potatoes in Hail are cultivated in sandy soil that gives the crop sufficient room to grow without deformities, setting it apart from harder soils that reduce quality and market acceptance. The main challenge, however, was not the soil but groundwater scarcity, making the search for innovative irrigation solutions a necessity rather than a choice.

That marked the start of a shift. Farmers have adopted drip irrigation systems powered by solar energy to reduce consumption and increase productivity, transforming Hail into a strategic production hub that contributes to self-sufficiency and exports to global markets.

According to previous remarks by Saudi Industry Minister Bandar Alkhorayef, the kingdom developed an irrigation model tailored to potatoes grown for potato chip manufacturing and export.

Alkhorayef said at the time that PepsiCo, which produces the well-known Lay’s brand, faced difficulties exporting potatoes grown in the kingdom. He stated that the government had collaborated with the Ministry of Agriculture to address the issue.

“They had a valid concern related to water scarcity, so we developed an appropriate irrigation model, which was approved by the agriculture ministry, resolving the export problem,” he said.

According to the Ministry of Environment, Water, and Agriculture, Saudi Arabia experienced a significant increase in potato production in 2023, with output rising by 47 percent to exceed 621,750 tonnes. The self-sufficiency rate reached 86.8 percent, according to the latest officially announced figures.

Hamoud Al Saleh, founder and chairman of Lahaa Agricultural Production, one of the Saudi suppliers to PepsiCo, said the kingdom had exported potatoes to Russia for six consecutive years, in addition to other countries including Norway, Lebanon, Syria and Jordan, while also supplying local factories.

Challenges

Some European markets still face hurdles in importing Saudi potatoes due to the absence of trade protocols, while Norway has proven more flexible, continuing imports over recent years, Al Saleh said.

He said groundwater remains the biggest challenge for farmers. Speaking to Asharq Al Awsat, Al Saleh said PepsiCo supported the company in implementing drip irrigation, covering part of the cost for three years and providing experts to help design and approve the system, which significantly increased productivity.

He said yields per hectare rose to between 50 and 60 tonnes in some fields, alongside a notable reduction in water consumption. He added that Saudi potatoes show high resilience to environmental conditions.

Energy has also been a challenge, with agricultural equipment relying heavily on diesel. This has prompted many farmers to adopt solar power, thereby easing operating costs for both farmers and the state.

Al Saleh unveiled a new project costing 15 million riyals, approximately $4 million, spanning 700 hectares and utilizing a combination of diesel and solar energy, describing it as a long-term investment aimed at enhancing sustainability and reducing consumption.

Resource efficiency

PepsiCo said resource efficiency has become a central pillar of its regional strategy. Ahmed El Sheikh, president and general manager for the Middle East, North Africa and Pakistan, said the company had adopted advanced drip irrigation systems in cooperation with specialized firms and the agriculture and industry ministries.

He said this helped cut water use by around 30 percent compared to traditional irrigation, alongside a shift toward solar energy instead of diesel, which reduced fuel and energy consumption.

Regarding exports, El Sheikh stated that most products are shipped to Gulf states and Jordan, with efforts underway to explore exports to Syria from plants within the kingdom.

In terms of investments linked to Vision 2030, he stated that the company has invested 300 million riyals, approximately $80 million, in new production lines targeting both local and export markets.

He stated that local content reached 95 percent for certain packaging materials that were previously imported, while locally sourced potatoes also achieved 95 percent, with ongoing efforts to reach 100 percent.

Local content refers to the share of raw materials, manufactured inputs, or extracted resources produced inside Saudi Arabia, whether agricultural, industrial, or packaging-related.

Regarding workforce localization, El Sheikh stated that some plants, including the Dammam factory, have achieved Saudization rates of 80 percent, with the appointment of the first Saudi female plant manager.

In research and development, the company stated that it has established an R&D center with investments exceeding 30 million riyals, approximately $8 million, thereby localizing operations within the kingdom instead of relying on overseas centers.

El Sheikh said the company has reached full operational capacity in working with farmers on potato crops, calling it a major achievement that it hopes to replicate with other crops in the future.

Water scarcity by the numbers

This agricultural experience comes amid mounting challenges to water resources. The National Water Strategy says Saudi Arabia has a limited stock of exploitable non-renewable groundwater, with low recharge rates not exceeding 2.8 billion cubic meters annually.

Total water demand is estimated at approximately 24.8 billion cubic meters, with an annual growth rate of around 7 percent.

The strategy states that agriculture is the largest consumer of water in the kingdom, accounting for approximately 84 percent of total demand, and relies heavily on non-renewable resources that make up nearly 90 percent of agricultural water use.

Agriculture ministry data show irrigation efficiency does not exceed 50 percent, compared with more than 75 percent under global best practices. Fodder cultivation alone consumes about 67 percent of agricultural water, according to the latest available figures.

Government role

This shift in potato farming would not have been completed without government support. The kingdom developed and approved an irrigation model suited to potatoes grown for chips and export as the preferred method, prompting PepsiCo to expand its factories in the Eastern Province with investments exceeding 300 million riyals.

This helped make Saudi Arabia the world’s second-largest hub for potato chip manufacturing, according to previous remarks by the industry minister.

Beyond exports, the model strengthens self-sufficiency. Under this approach, Saudi potatoes have become more than just an ingredient in chips, turning into a symbol of integration between agriculture and industry and evidence of the kingdom’s ability to transform environmental challenges into global economic and investment opportunities, in line with the ambitions of Vision 2030.


Saudi Arabia Among Top 10 Investors in Tunisia With Over $375 Mln

 Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef speaks during the business forum in Riyadh (Asharq Al-Awsat)
Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef speaks during the business forum in Riyadh (Asharq Al-Awsat)
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Saudi Arabia Among Top 10 Investors in Tunisia With Over $375 Mln

 Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef speaks during the business forum in Riyadh (Asharq Al-Awsat)
Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef speaks during the business forum in Riyadh (Asharq Al-Awsat)

Saudi investments in Tunisia have gathered momentum over recent years, placing the kingdom among the country’s top 10 foreign investors, with cumulative investments surpassing $375 million by the end of 2024.

The figures were disclosed at the Saudi-Tunisian Business Forum, held in Riyadh on Monday on the sidelines of the 12th session of the Saudi-Tunisian Joint Committee, where officials and business leaders met to explore ways to deepen investment ties between the two countries.

The forum was attended by Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef and Tunisia’s Minister of Economy and Planning, Dr. Samir Abdelhafidh.

The forum was organized by the Ministry of Industry and Mineral Resources in cooperation with the Ministry of Investment and the Federation of Saudi Chambers, with the participation of official delegations and more than 300 representatives from the public and private sectors in both countries.

High-level visits

In his opening remarks, Alkhorayef emphasized the strength of long-standing Saudi-Tunisian relations, which are rooted in the shared vision of the two countries’ leaderships and reinforced by high-level reciprocal visits.

He said these visits had formed a cornerstone in supporting economic momentum and driving recent growth in bilateral trade.

Alkhorayef described the Saudi Tunisian Business Forum as an important milestone for enhancing investment partnerships and transforming promising opportunities into projects with tangible economic impact.

“We are betting today on investors, business leaders, and private sector champions in both countries to lead growth in promising sectors, including advanced industries, tourism, renewable energy, and mining,” he said.

“Our role as governments is to enable, legislate, and facilitate procedures, while the private sector’s role is to build, innovate, and turn these enablers into productive projects, job opportunities, and shared success stories that reflect the value and depth of the partnership, toward comprehensive economic integration based on the competitive advantages of both countries.”

Investment fundamentals

For his part, Abdelhafidh said the Saudi Tunisian Business Forum serves as a practical platform for strengthening investment partnerships, noting the steady rise in Saudi investments in Tunisia in recent years, with the kingdom among the top 10 investing countries and total investments exceeding $375 million by the end of 2024.

He said Tunisia offers competitive investment fundamentals, including a strong pool of engineering and technical talent, as well as the capacity to absorb large-scale projects, particularly in renewable energy, automotive and aerospace components manufacturing, pharmaceuticals, and the food industry.

Supply chains

In a related context, Saudi Tunisian Business Council Chairman Dr. Omar Al Ajaji highlighted the importance of the private sector’s role in strengthening economic cooperation between the two countries.

He said the forum helps business communities explore promising opportunities and opens broader horizons for integration in key sectors, particularly industry, technology, and supply chains.

Also speaking at the forum, Dr. Samir Majoul, President of the Tunisian Union of Industry, Trade, and Handicrafts, emphasized the need to create a regulatory environment conducive to investment and to establish sustainable strategic partnerships that foster trade and investment flows between the kingdom and Tunisia.

The Saudi-Tunisian Business Forum reflects the two countries’ shared vision of building effective investment partnerships that expand cooperation and economic integration, support growth in bilateral trade, align with the goals of Saudi Vision 2030, and advance comprehensive and sustainable development in both countries.


Iran's Central Bank Chief Resigns

A man walks past a sign at a currency exchange bureau as the value of the Iranian rial drops, in Tehran, Iran, December 20, 2025. (Via Reuters)
A man walks past a sign at a currency exchange bureau as the value of the Iranian rial drops, in Tehran, Iran, December 20, 2025. (Via Reuters)
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Iran's Central Bank Chief Resigns

A man walks past a sign at a currency exchange bureau as the value of the Iranian rial drops, in Tehran, Iran, December 20, 2025. (Via Reuters)
A man walks past a sign at a currency exchange bureau as the value of the Iranian rial drops, in Tehran, Iran, December 20, 2025. (Via Reuters)

Iran's central bank chief, Mohammad Reza Farzin, has resigned, the semi-official ​Nournews agency reported on Monday, citing an official at the president's office, as the country battles a slump in its rial currency and high inflation.

The rial, which has been falling as the Iranian economy has suffered from the impact of Western sanctions, fell to a ‌new record low on ‌Monday at around 1,390,000 ‌to ⁠the ​dollar, according ‌to websites displaying open market rates.

Iranian media outlets reported there had been demonstrations in the capital Tehran, mainly by shop owners, against the economic situation.

Farzin has headed the central bank since December 2022. His resignation will be reviewed by President Masoud ⁠Pezeshkian, the official added, according to Nournews.

Iranian state media reported ‌later on Monday, citing the communications ‍and information deputy ‍at the Iranian president's office, that former Economy ‍Minister Abdolnaser Hemmati will be appointed as the new central bank chief.

Iranian media have said the government's recent economic liberalization policies have put pressure on the ​open-rate currency market.

The open-rate market is where ordinary Iranians buy foreign currency, whereas businesses typically ⁠use state-regulated rates.

The reimposition of US sanctions in 2018 during President Donald Trump's first term has harmed Iran's economy by limiting its oil exports and access to foreign currency.

The Iranian economy is at risk of recession, with the World Bank forecasting GDP will shrink by 1.7% in 2025 and 2.8% in 2026. The risk is compounded by rising inflation, which hit a 40-month high of ‌48.6% in October, according to Iran's Statistical Center.