Saudi Aramco Stock (Tadawul: 2222)

11:45, 27 April 2023

saudi aramco stock buy

Despite a grim 2022, Aramco shares remain very popular among Saudia investors and top-performing international funds. While you can buy Saudi Aramco stock directly, sometimes it is worth considering an ETF with Aramco representation.

Saudi Arabian Oil Co., also known as Aramco, is a global petroleum and natural gas company based in Saudi Arabia. Founded in 1933, Aramco became a publicly traded company in 2019, with its initial public offering (IPO) being the largest in history.

Today, Aramco is listed on the Saudi Stock Exchange (Tadawul) under the ticker symbol "2222" and is considered one of the most valuable companies in the world, with its shares being held by a diverse range of investors, including institutional and individual investors, as well as sovereign wealth funds. 

Aramco shares are also included in various global indices and exchange-traded funds (ETFs) that track the performance of the energy sector and are now one of the top holdings in the largest Frontier and Emerging Markets ETFs (KSA).

Aramco Shares - Research and Ratings

  • Is Aramco stock undervalued compared to its fair value, analyst forecasts, and its price relative to the market?
  • What is the analyst's 12-month Aramco share price forecast?
  • What are Aramco’s future growth expectations?
  • How has Saudi Aramco stock performed over the past 5 years?
  • Should you buy Aramco shares or invest in ETFs with Aramco representation?

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Understanding Aramco Shares: A brief history 

Aramco is one of the world's largest integrated energy and chemicals companies, creating value across the hydrocarbon business chain, as well as driving economic and societal development in communities around the world that depend on energy supplies. 

We can divide Aramco's growth into six segments historically:    

The Birth of Arabian Oil: Aramco began as a subsidiary of California Arabian Standard Oil Company in 1933 after a concession agreement was signed between Saudi Arabia and SOCAL. Drilling for oil began in 1935, and despite initial setbacks, the chief geologist recommended they continue drilling.

  • Radical expansion across Saudi Arabia: Aramco grew rapidly from the late 1940s and reached record-breaking oil production milestones, expanding their distribution efforts through the completion of the Trans-Arabian Pipeline in 1950 and the discovery of the Safaniyah field in 1951, which became the world's largest oil field.
  • Making Aramco's name: In the 1970s, the Saudi government increased its interest in Aramco and eventually established Saudi Aramco in 1988, with a focus on becoming an integrated petroleum enterprise. This included the formation of joint ventures and partnerships with Texaco and Shell, which evolved into Aramco's ownership of North America's largest crude oil refinery at Port Arthur, Texas.
  • Aramco becomes a Global Company: In the 1990s, Aramco extended their partnerships and international investments by acquiring interests in SsangYong Oil Refining Company in South Korea, Petron Corporation in the Philippines, and Motor Oil (Hellas) Corinth Refineries S.A. in Greece.
  • Innovation: Aramco invested in advanced technology to discover and extract crude oil, developing POWERS, a high-resolution reservoir simulator, in 1997 - 2000, they built a state-of-the-art Research and Development Center in Dhahran to increase discovery and recovery, reduce costs, and enhance safety.
  • Transformation: Saudi Aramco diversified into non-traditional markets and invested in new technological solutions to achieve cleaner, more efficient production and consumption of oil. They envision transforming billions more barrels of oil and trillions of cubic feet of gas into multiple streams of value while remaining a reliable supplier of sustainable energy to the world. 

Aramco shares are distributed among 4 categories:  

  • State or Government: 94.2%
  • General Public - 1.6%
  • Institutions - 4.1%
  • Individual Insiders - 0.002%

The top 25 shareholders own 98.35% of the company, while the top 5 shareholders are:

  • Saudi Arabia government - 94.22%
  • The Public Investment Fund of The Kingdom of Saudi Arabia - 4%
  • The Vanguard Group, Inc. - 0.05%
  • BlackRock, Inc. - 0.031%
  • Goldman Sachs Asset Management, L.P. - 0.0041%

Saudi Amarco stock - Fundamental Analysis and Financial Ratings 

See the latest Aramco stock price analysis, including valuation, future growth, past performance, and more to help you make more informed investing decisions. 


Is Amarco stock undervalued compared to its fair value, analyst forecasts, and its price relative to the market? 

  • Aramco "2222" is expensive based on its Price-To-Earnings Ratio (12.8x) compared to the Asian Oil and Gas industry average (8.2x).
  • Aramco "2222" is good value based on its Price-To-Earnings Ratio (12.8x) compared to the estimated Fair Price-To-Earnings Ratio (12.9x).
  • Aramco "2222" is trading above analysts' estimate of fair value (SAR15.16)

Future Growth 

Aramco earnings are forecast to decline at an annual rate of -6.3% and its revenue is expected to decline at -8.5% annually. EPS and ROE are forecast to decline -7.4% and grow 25.8% each year respectively.

  • Earnings vs Savings Rate: Aramco's earnings are forecast to decline over the next 3 years (-6.3% per year).
  • Revenue vs Market: Aramco's revenue is expected to decline over the next 3 years (-8.5% per year).
  • Future ROE: Aramco's Return on Equity is forecast to be high in 3 years time (25.8%).

Past Performance 

How has Aramco stock performed over the past 5 years? 

  • Aramco has high-quality earnings.
  • Aramco's current net profit margins (26.4%) are higher than last year (26.3%).
  • Aramco's earnings have grown by 11% per year over the past 5 years.
  • Aramco's earnings growth over the past year (51.1%) exceeds its 5-year average (11% per year).
  • Aramco's earnings growth over the past year (51.1%) exceeded the Oil and Gas industry's 36.3%.
  • Aramco's Return on Equity (36.3%) is considered high. 

Financial Health  

What is Aramco's financial position?  

  • Aramco's short-term assets (SAR857.8B) exceed its short-term liabilities (SAR331.4B).
  • Aramco's short-term assets (SAR857.8B) exceed its long-term liabilities (SAR495.4B).
  • Aramco has more cash than its total debt.
  • Aramco's debt-to-equity ratio has increased from 8.5% to 20.4% over the past 5 years.
  • Aramco's debt is well covered by operating cash flow (205%).
  • Aramco earns more interest than it pays, so coverage of interest payments is not a concern. 


Aramco, a company that pays dividends, currently offers a yield of 3.8%, which is adequately supported by its earnings.

  • Aramco's dividend (3.84%) is higher than the bottom 25% of dividend payers in the Saudi market (1.95%).
  • Aramco's dividend (3.84%) is low compared to the top 25% of dividend payers in the Saudi market (4.28%).
  • Whilst dividend payments have been stable, Aramco has been paying a dividend for less than 10 years.
  • Aramco's dividend payments have increased, but the company has only paid a dividend for 3 years. 

Aramco's Shares Price Forecast 

What is the analyst 12-month Aramco shares price forecast, and do we have any statistical confidence in the consensus price target from analysts? 

Saudi Aramco Stock Price Forecast


According to, the Aramco stock 12-month target price is less than 20% higher than the current share price.

Wallet investor site suggests that the price of Aramco stock will drop in 2023 compared to the current price, ending the year at an average price of 25.746 SAR.

There are no 5-year Aramco share price forecasts and price predictions.

There are no 5-year Saudi Aramco shares price forecasts and price predictions. 

Important: When considering Saudi Aramco's fundamental analysis, financial rating and price predictions, it’s important to remember that high market volatility and changing economic environment makes it difficult to give long-term estimates. As such, analysts and algorithm-based platforms can and do get their ratings and predictions wrong. Always do your own research before making an investment decision. And never trade or invest more than you can afford to lose. 

Saudi Aramco Stock Price - Technical Analysis  

The weekly chart of Aramco's shares shows the price attempting a 50% Fibonacci retracement of the May 2022 peak at 43.25 SAR.  

With the price breaching the simple moving average for the 20-day closing, and trading above the 60.00 level of the RSI (Relative Strength Index), the price has the potential to complete its corrective cycle to the resistance level at 37.50 SAR. If the price can cross this level this may open the door towards the 38.75 SAR - 41.05 SAR levels.

>> Learn more about technical analysis with our free trading courses for beginners

How to Invest in Aramco Stock 

Some investors want to take an active hand in managing their investments, while others prefer to set it and forget it. Your preference may change but decide on an approach to get started. 

For most people, stock market investing means choosing among these two investment types: 

Individual Aramco shares  

If you’re after a specific company, you can buy a single share or a few shares to dip your toe into the stock-trading waters. Building a diversified portfolio out of many individual stocks is possible, but it takes significant investment and research. 

If you go this route, remember that individual stocks will have ups and downs. If you research a company and choose to invest in it, think about why you picked that company in the first place if jitters start to set in on a down day. 

Traditional stockbrokers allow you to invest in local stocks. However, you might not be able to invest in international stocks listed on the major stock exchanges, global ETFs, and other assets. 

>> Best Stocks to Buy in 2023 

ETFs with Aramco holdings 

Aramco stock (or any single stock, for that matter) can be a very volatile investment. You can manage the risk you see extreme highs and lows by diversifying your investment holdings. An ETF, for instance, contains a basket of individual stocks. When you invest in a fund, you also own small pieces of each of those companies. 

If you want an ETF with Aramco representation, you might consider iShares MSCI Saudi Arabia ETF (KSA). BlackRock's iShares is the largest provider of ETFs as calculated by assets under management. 

The fund can be suitable for Arab and foreign investors who want liquid and diversified exposure to the top 7 companies listed on the Saudi Stock Exchange: "Al Rajhi Bank, The Saudi National Bank, Saudi Basic Industries, Aramco - Saudi Arabian Oil, Saudi Telecom, Saudi Arabian Mining, Riyad Bank".

>> Best ETFs for 2023 

Why invest in Saudi Aramco Shares via KSA? 

The iShares MSCI Saudi Arabia ETF seeks to track the investment results of a broad-based index composed of Saudi Arabian equities. With net assets of almost $1B, The iShares MSCI Saudi Arabia ETF (KSA) is the largest exchange-traded fund that seeks to track the investment results of an index composed primarily of frontier market equities along with select emerging market equities.

  1. Access to the Saudi Arabian stock market, which has historically been closed to foreign investors.
  2. Targeted exposure to a country with growth potential. with one-click access to a virtually untapped investment portfolio, including Saudi Stock Exchange and TASI index exposure.
  3. Use to seek long-term growth and diversification.

Try a Demo 

How to Get Started with 

Here is how to buy and trade stocks, ETFs and other assets with an international, highly regulated broker like 

  • Choose which type of account you want to use. Your first concern should be your risk appetite and time horizon. If you want to buy and hold shares, open an Invest account. If you want to speculate on price movements (including falling prices) with zero commission and leverage, open a CFD trading account. 
  • Create an account. Regardless of your chosen account, you need to register and complete the KYC process to verify your identity. 
  • Fund your account with fiat money. Before buying and trading stocks and ETFs, you need to fund your exchange account with U.S. dollars, Euros, or other currencies. 
  • Place your order. Click on the "Search" icon located in the left panel or by clicking on "ETFs" and then select the instrument, such as "iShares MSCI Saudi Arabia ETF”.  

When trading stocks, the CFDs (contracts for difference) are stored in your account and are more liquid than the underlying asset.  

However, you should be aware that CFD trading is fast-moving and requires close monitoring. As a result, traders should be aware of the significant risks when trading CFDs. There are margins you need to maintain; if you cannot cover reductions in values, your position might be closed, and you'll have to meet the loss no matter what subsequently happens to the underlying asset. 

With CAPEX, you can trade CFDs on +2.000 stocks and invest in +5.000 stocks and ETFs with ownership. 

Free trading tools and resources 

Before you start investing in shares, you should consider using the educational resources we offer like CAPEX Academy or a demo trading account. CAPEX Academy has lots of free trading courses for you to choose from, and they all tackle a different financial concept or process – like the basics of analyses – to help you to become a more informed trader. 

Our demo account is a great place for you to learn more about leveraged trading, and you’ll be able to get an intimate understanding of how CFDs work – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for investors who are looking to make a transition to leveraged trading. 


Driven by the curiosity to explore | Aramco 

Largest Saudi Arabian (Tadawul) Stocks by Market Cap - Simply Wall St 

Saudi Arabian Oil Company (2222.SR) Stock Price, News, Quote & History - Yahoo Finance 

Saudi Aramco Stock Forecast: - 2222 Stock Price Prediction, Long-Term; Short-Term Share Revenue - Walletinvestor


Why do investors buy Aramco shares?

Investors will buy Aramco shares to:

  • Make a profit from the Aramco share price rising
  • Receive an income from dividends if the company pays them
  • Benefit from the effects of compounding

Investors should be aware they might get back fewer returns than they initially invested.

Should you invest in Aramco shares in 2023?

Whether you buy Aramco shares directly or invest in an ETF with Aramco representation is a personal decision you should take depending on your risk tolerance and investing strategy. You should do your own research to develop an informed view of the market. Always make sure to do your own research. And never invest money you cannot afford to lose.

How do I buy Aramco shares?

To buy shares in Aramco you'll need a share-dealing account with an online stockbroker offering stocks listed on the Saudi Stock Exchange. Once you have opened your account and transferred funds into it, you'll be able to search and select shares to buy and sell.    

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