DUBAI, United Arab Emirates – Saudi Aramco, the state – owned oil behemoth of Saudi Arabia, disclosed on Sunday that its first – quarter profits had reached $26 billion. This figure represents a 4.6% decline compared to the same period last year. The slump in global oil prices is casting a shadow over the kingdom’s ambitious multi – trillion – dollar development plans. In a filing on Riyadh’s Tadawul stock exchange, Aramco, formally known as the Saudi Arabian Oil Co., reported revenues of $108.1 billion for the quarter. In contrast, during the same quarter last year, the company recorded revenues of $107.2 billion and profits of $27.2 billion.
Saudi Arabia’s economic landscape is further complicated by a series of large – scale investment and development initiatives. The kingdom has pledged to invest $600 billion in the United States during President Donald Trump’s term. Trump, who is scheduled to arrive in Riyadh on Tuesday for his first official foreign trip since returning to the Oval Office, stated in January that he hopes to increase this investment to approximately $1 trillion. Additionally, Crown Prince Mohammed bin Salman has his eyes set on the $500 billion Neom project, which aims to construct a massive, futuristic city in the desert along the Red Sea. Looking ahead to 2034, when Saudi Arabia will host the World Cup, the country will also require new stadiums and infrastructure, with costs estimated in the tens of billions of dollars.
The release of Aramco’s first – quarter results coincides with increased oil production by the OPEC+ alliance. The oil cartel has agreed to boost output by 411,000 barrels per day next month. The decision comes as uncertainty, driven by U.S. tariffs, continues to impact Middle Eastern markets. This increase in production likely means that Saudi Arabia will have to resort to borrowing or using reserve funds to finance the crown prince’s costly development goals. Aramco’s stock has also been affected by these market conditions. Trading at over $6 a share on Thursday, it has declined from a high of around $8 last year. Aramco President and CEO Amin H. Nasser acknowledged the situation in a statement, noting that “Global trade dynamics affected energy markets in the first quarter of 2025, with economic uncertainty impacting oil prices.” Benchmark Brent crude, which traded at over $63 a barrel on Friday, has fallen significantly from highs of over $80 in the last year. Despite these challenges, Aramco remains a financial heavyweight with a market value of over $1.6 trillion, ranking it as the sixth richest company globally, behind tech giants Microsoft, Apple, NVIDIA, Amazon, and Alphabet, the parent company of Google. Analysts continue to view Aramco as a key influencer in global oil markets.
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