Saudi Aramco, the state-owned oil and gas giant of Saudi Arabia, has surpassed Microsoft to become the world’s second-largest company in terms of market value. The company’s market value is now estimated at $2.11 trillion, second only to Apple.
Aramco’s stock soared last month after Crown Prince Mohammed bin Salman announced that he would transfer four percent of the company to Sanabil Investments, which is owned by the Saudi Public Investment Fund (PIF).
The transfer of shares is part of the crown prince’s plan to gradually privatize Aramco and raise funds for the PIF. The PIF is a sovereign wealth fund that is tasked with investing in a variety of sectors, including infrastructure, tourism, and technology.
Aramco’s strong performance is due to a number of factors, including the rising demand for oil and gas, the company’s low production costs, and its strategic location. The company is also benefiting from the current geopolitical situation, as the sanctions on Russia have led to an increase in demand for Saudi oil.
Saudi Aramco’s Strong Performance Boosts Saudi Economy
The strong performance of Saudi Aramco is boosting the Saudi economy. The company’s profits are being used to fund government projects, invest in new industries, and create jobs.
In 2021, Aramco generated $161 billion in profits, which was more than the combined profits of Apple, Exxon, and Microsoft. The company’s profits are expected to continue to grow in the coming years, as the global demand for oil and gas is expected to remain strong.
The government of Saudi Arabia is using Aramco’s profits to fund a number of ambitious projects, including the construction of a new city in the desert and the development of a new space program. The government is also using the profits to invest in new industries, such as renewable energy and tourism.
Aramco’s strong performance is creating jobs in Saudi Arabia. The company employs over 70,000 people in the kingdom, and it is expected to create thousands more jobs in the coming years. The company’s investments in new industries are also creating jobs.
The strong performance of Saudi Aramco is a major boost for the Saudi economy. The company is helping to diversify the economy, create jobs, and fund government projects.
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