عربي English Türkçe اردو فارسى
Logo
Latest News
Business

Saudi Aramco Maintains Generous Payouts Despite Global Headwinds

Engineers at work at Saudi Aramco. (Saudi Aramco)
Engineers at work at Saudi Aramco. (Saudi Aramco)
TT
TT

Saudi Aramco Maintains Generous Payouts Despite Global Headwinds

Engineers at work at Saudi Aramco. (Saudi Aramco)
Engineers at work at Saudi Aramco. (Saudi Aramco)

Saudi Aramco has maintained substantial dividend payouts to shareholders, affirming its commitment to rewarding investors even during turbulent times and despite a decline in global oil prices.

The state-owned oil giant announced a net income of SAR 85.02 billion (USD 22.67 billion) for the second quarter of 2025, marking a 22% drop compared to the same period last year.

However, the company will still distribute a total of SAR 80.11 billion (USD 21.36 billion) in dividends, comprising base dividends of USD 21.14 billion and performance-linked payouts of USD 220 million.

Aramco attributed the earnings dip to lower average oil prices and ongoing global economic uncertainty. According to its disclosure to the Saudi stock exchange (Tadawul), the company’s revenue for Q2 stood at SAR 378.8 billion (USD 101.02 billion), down from SAR 426.4 billion (USD 113.52 billion) in the same quarter of 2024.

The average price of Brent crude was USD 20 lower per barrel compared to the previous year, underscoring the impact of market volatility.

These results reinforce Aramco’s operational resilience and strategic discipline. CEO Amin Nasser emphasized the company’s strong performance and consistent shareholder returns, noting Aramco’s ability to allocate capital efficiently and stay the course on long-term investment plans.

He predicted global oil demand to increase by more than 2 million barrels per day in the second half of 2025.

“Our long-term strategy reflects our confidence in the continued central role of hydrocarbons in global energy and chemicals markets,” Nasser underlined.

Aramco’s strong cash flow continues to benefit the Saudi government, which is expected to receive around USD 17.41 billion in dividend payments for the quarter.

The International Monetary Fund (IMF), in a recent statement, suggested that despite ongoing oil price pressure, Saudi Arabia does not require additional fiscal adjustments in 2025. IMF mission chief Amine Mati said the projected 4% budget deficit is “entirely appropriate,” given the country’s robust foreign reserves.

Aramco’s debt levels remain among the lowest in the industry. The company reported a leverage ratio of 5.5% in the first half of 2025, significantly below the 19.4% average among global oil majors.

Aramco Executive Vice President and CFO Ziad Al-Murshed told Asharq TV that pre-dividend free cash flow reached USD 15.2 billion in Q2, reinforcing the company’s solid financial position.

He noted Aramco’s return on equity over the past 12 months stood at 18.7%, nearly double the industry average.

Still, Aramco’s shares dipped 0.3% following the earnings announcement, closing at SAR 23.84. Saudi Arabia’s broader market, however, posted a modest gain.

Financial advisor Mohammed Al-Maimouni told Asharq Al-Awsat that Aramco’s earnings per share (EPS), excluding exceptional items, came in at SAR 0.7482, down from SAR 0.8663 in Q2 2024.

He also pointed to a slight decline in shareholders’ equity, which stood at SAR 1.483 trillion at mid-2025, down from SAR 1.508 trillion a year earlier.

Most Viewed

 
 
Business

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
TT
TT

IMF and Arab Monetary Fund Sign MoU to Enhance Cooperation

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA
The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki - SPA

The International Monetary Fund (IMF) and the Arab Monetary Fund (AMF) signed a memorandum of understanding (MoU) on the sidelines of the AlUla Conference on Emerging Market Economies (EME) to enhance cooperation between the two institutions.

The MoU was signed by IMF Managing Director Dr. Kristalina Georgieva and AMF Director General Dr. Fahad Alturki, SPA reported.

The agreement aims to strengthen coordination in economic and financial policy areas, including surveillance and lending activities, data and analytical exchange, capacity building, and the provision of technical assistance, in support of regional financial and economic stability.

Both sides affirmed that the MoU represents an important step toward deepening their strategic partnership and strengthening the regional financial safety net, serving member countries and enhancing their ability to address economic challenges.

Business

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT
TT
TT

Saudi Chambers Federation Announces First Saudi-Kuwaiti Business Council

File photo of the Saudi flag/AAWSAT
File photo of the Saudi flag/AAWSAT

The Federation of Saudi Chambers announced the formation of the first joint Saudi-Kuwaiti Business Council for its inaugural term (1447–1451 AH) and the election of Salman bin Hassan Al-Oqayel as its chairman.

Al-Oqayel said the council’s formation marks a pivotal milestone in economic relations between Saudi Arabia and Kuwait, reflecting a practical approach to enabling the business sectors in both countries to capitalize on promising investment opportunities and strengthen bilateral trade and investment partnerships, SPA reported.

He noted that trade between Saudi Arabia and Kuwait reached approximately SAR9.5 billion by the end of November 2025, including SAR8 billion in Saudi exports and SAR1.5 billion in Kuwaiti imports.

Business

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
TT
TT

Leading Harvard Trade Economist Says Saudi Arabia Holds Key to Success in Fragmented Global Economy

Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).
Professor Pol Antràs speaks during a panel discussion at the AlUla Conference for Emerging Market Economies (Asharq Al-Awsat).

Harvard University economics professor Pol Antràs said Saudi Arabia represents an exceptional model in the shifting global trade landscape, differing fundamentally from traditional emerging-market frameworks. He also stressed that globalization has not ended but has instead re-formed into what he describes as fragmented integration.

Speaking to Asharq Al-Awsat on the sidelines of the AlUla Conference for Emerging Market Economies, Antràs said Saudi Arabia’s Vision-driven structural reforms position the Kingdom to benefit from the ongoing phase of fragmented integration, adding that the country’s strategic focus on logistics transformation and artificial intelligence constitutes a key engine for sustainable growth that extends beyond the volatility of global crises.

Antràs, the Robert G. Ory Professor of Economics at Harvard University, is one of the leading contemporary theorists of international trade. His research, which reshaped understanding of global value chains, focuses on how firms organize cross-border production and how regulation and technological change influence global trade flows and corporate decision-making.

He said conventional classifications of economies often obscure important structural differences, noting that the term emerging markets groups together countries with widely divergent industrial bases. Economies that depend heavily on manufacturing exports rely critically on market access and trade integration and therefore face stronger competitive pressures from Chinese exports that are increasingly shifting toward alternative markets.

Saudi Arabia, by contrast, exports extensively while facing limited direct competition from China in its primary export commodity, a situation that creates a strategic opportunity. The current environment allows the Kingdom to obtain imports from China at lower cost and access a broader range of goods that previously flowed largely toward the United States market.

Addressing how emerging economies should respond to dumping pressures and rising competition, Antràs said countries should minimize protectionist tendencies and instead position themselves as committed participants in the multilateral trading system, allowing foreign producers to access domestic markets while encouraging domestic firms to expand internationally.

He noted that although Chinese dumping presents concerns for countries with manufacturing sectors that compete directly with Chinese production, the risk is lower for Saudi Arabia because it does not maintain a large manufacturing base that overlaps directly with Chinese exports. Lower-cost imports could benefit Saudi consumers, while targeted policy tools such as credit programs, subsidies, and support for firms seeking to redesign and upgrade business models represent more effective responses than broad protectionist measures.

Globalization has not ended

Antràs said globalization continues but through more complex structures, with trade agreements increasingly negotiated through diverse arrangements rather than relying primarily on multilateral negotiations. Trade deals will continue to be concluded, but they are likely to become more complex, with uncertainty remaining a defining feature of the global trading environment.

Interest rates and artificial intelligence

According to Antràs, high global interest rates, combined with the additional risk premiums faced by emerging markets, are constraining investment, particularly in sectors that require export financing, capital expenditure, and continuous quality upgrading.

However, he noted that elevated interest rates partly reflect expectations of stronger long-term growth driven by artificial intelligence and broader technological transformation.

He also said if those growth expectations materialize, productivity gains could enable small and medium-sized enterprises to forecast demand more accurately and identify previously untapped markets, partially offsetting the negative effects of higher borrowing costs.

Employment concerns and the role of government

The Harvard professor warned that labor markets face a dual challenge stemming from intensified Chinese export competition and accelerating job automation driven by artificial intelligence, developments that could lead to significant disruptions, particularly among younger workers. He said governments must adopt proactive strategies requiring substantial fiscal resources to mitigate near-term labor-market shocks.

According to Antràs, productivity growth remains the central condition for success: if new technologies deliver the anticipated productivity gains, governments will gain the fiscal space needed to compensate affected groups and retrain the workforce, achieving a balance between addressing short-term disruptions and investing in long-term strategic gains.