The ARAMCO public offering: A road to financial expansion and investment?

Saudi Arabia listed the Arabian Oil Company (ARAMCO) on the country’s stock market, Tadawul, on 12 December 2019. Saudi ARAMCO is estimated to supply over 10 per cent of the world’s oil annually (Nehme, 2019), and represents an important entity in the Middle-East and the world. The government offered 1.5 per cent of the company at a world-record valuation of US$ 2 trillion. This is a landmark event, not only for the financial system of Saudi Arabia, but for the global financial system. ARAMCO is the most profitable company in the world and its current valuation is nearly US$ 1 trillion greater than the second-most valued global firm, Apple Inc (Jones & Said, 2019). This represents and demonstrates a unique ambition and financialisation drive that will undoubtedly propel the Saudi financial system into a global inspiration.