Saudi Aramco became the first Middle Eastern company to exceed a $2 trillion market capitalization.
Saudi Aramco passed the threshold during its December 2019 initial public offering on the Saudi Stock Exchange, known as Tadawul. The valuation was based on the offering price and the company’s total share count, making it one of the largest corporate listings ever recorded.
The company is formally called Saudi Arabian Oil Company and is controlled by the Saudi Arabian government. Its roots reach back to the concession granted to Standard Oil of California in 1933, with oil production beginning at Dammam Well No. 7 in 1938.
Saudi Aramco is especially important because Saudi Arabia is one of the world’s leading oil producers and exporters. Its market value can be compared with technology giants, but the businesses differ substantially: Aramco is centered on hydrocarbons, refining, chemicals, and energy infrastructure.