Saudi Arabia’s state oil giant reported worse-than-expected earnings, with quarterly profit falling for a 10th successive quarter, a protracted decline that threatens to slow the kingdom’s economic transformation.
Paradoxically, Aramco is key to Saudi efforts to wean itself off oil: The company’s dividends power Riyadh’s $1.15 trillion sovereign wealth fund, which plays a growing role in the domestic economy, and future stock sales could accelerate that effort.
The kingdom has made some progress, with its non-oil economy having overtaken the fossil-fuel one, but huge challenges remain, not least a widening government deficit, persistent vulnerability to crude prices — which are below 2024 levels — and weak Aramco shares, which are underperforming those of other major oil and gas firms.
