Saudi Aramco became the first Middle Eastern company to reach a $1 trillion market capitalization in December 2019.
Saudi Aramco, officially Saudi Arabian Oil Company, is Saudi Arabia’s state-controlled oil producer. Its initial public offering on the Saudi Stock Exchange, or Tadawul, gave investors a limited ownership stake while the Saudi government retained the overwhelming majority of shares.
Trading began in December 2019, and the stock reached the equivalent of a $2 trillion valuation on its second trading day. The company therefore passed the $1 trillion level as part of the same listing debut. Its valuation was closely tied to the scale of its oil reserves, production capacity, profitability, and the global price of crude oil.
Saudi Aramco is often compared with technology giants, but the businesses have different financial drivers. Oil prices and production conditions strongly affect an energy producer, while technology valuations are more influenced by software, devices, advertising, and expected innovation.