Saudi Aramco became the first non-technology business to surpass a US$2 trillion market capitalization.
The landmark occurred shortly after Saudi Aramco’s initial public offering on the Saudi Stock Exchange in December 2019. Its valuation was closely tied to the company’s enormous oil reserves, production capacity, refining operations, and role in Saudi Arabia’s economy.
Saudi Aramco is the shortened name of the Saudi Arabian Oil Company. The business traces its origins to a 1933 concession granted to Standard Oil of California, later known as Chevron. Oil production began commercially in the late 1930s.
The company is often confused with Saudi Arabia’s government itself. The state remains its majority owner, but Saudi Aramco is a separate corporation whose publicly traded shares are bought and sold on Tadawul. Market capitalization also differs from enterprise value, which includes debt and other financing factors.