Saudi Aramco: Investing From India, Simplified

Saudi Aramco, headquartered in Dhahran, is one of the world's largest integrated energy and chemicals companies. The company employs over 73,000 people and operates in Saudi Arabia and worldwide. Saudi Aramco is listed on the Tadawul stock exchange under the symbol 2222. Non-Saudi investors can buy and sell Saudi Aramco shares on the Tadawul exchange by opening a brokerage account with one of the exchange members. However, it is important to note that regulations limit foreign investment in Saudi stocks to financial institutions and individuals with deep pockets. Investors interested in gaining exposure to Saudi stocks without directly investing in Saudi Aramco can consider exchange-traded funds (ETFs) that focus on Middle Eastern companies.

Saudi Aramco's presence on the Saudi Stock Exchange

Saudi Aramco is a major state-owned petroleum and natural gas company, and the national oil company of Saudi Arabia. It is the fourth-largest company in the world by revenue as of 2024, and is headquartered in Dhahran.

Saudi Aramco's trading symbol on the Tadawul is "2222", and it falls under the 'Energy' sector and the 'Energy' industry group. The company's shares are subject to daily share trading limits set by the Tadawul, currently +/- 10% during the trading day, calculated based on the reference price (previous day's closing price).

Non-Saudi investors can buy and sell Saudi Aramco shares on the Tadawul by opening a brokerage account with one of the exchange members. However, it is important to note that the Tadawul permits only established institutional foreign investors, and not individual investors, to trade. A qualified foreign investor is typically defined as an entity with at least $5 billion in assets under management and has been in business for at least five years.

The Government of the Kingdom of Saudi Arabia currently owns more than 81.48% of Saudi Aramco's shares, with a maximum limit of 49% on total foreign ownership. The company's shares are also subject to other limits on direct investment in Saudi companies, including restrictions on the number of shares that can be owned by foreign investors.

How to open a brokerage account

To open a brokerage account in India, you must first choose a brokerage firm. It is important to conduct thorough research, taking into account the various charges levied by brokerages, the interface of their trading platforms, and the value-added services they offer.

After selecting a broker, you will need to fill out an account opening form and a Know Your Customer (KYC) form. The brokerage firm will require you to submit identity proof, residence proof, and in some cases, proof of income. Acceptable forms of identity proof include a photocopy of your Aadhar card or passport, while a copy of your Aadhar card or PAN card can be used as residence proof. It is mandatory to have a PAN card to open a trading account.

Once you have submitted the required documents, the brokerage firm will conduct a manual KYC verification. This may involve a representative visiting your house to verify the documents or conducting an online verification. If you prefer not to have your documents manually verified, you can opt for the e-KYC process, which requires your PAN card to be linked to your Aadhar card and bank account. The mobile number submitted in the account opening form should also be the same as the one registered with your Aadhar card for the e-KYC process.

The entire process typically takes 3-4 days to complete, after which your trading account will be activated.

With your brokerage account, you can access various stock exchanges such as BSE and NSE, as well as commodity exchanges like the Multi-Commodity Exchange and the National Commodity and Derivatives Exchange. Online trading accounts offer the flexibility to trade through multiple mediums, including mobile, desktop, or phone calls.

Investment limits on Saudi Aramco shares

Saudi Aramco is a majority state-owned company, with the Government of the Kingdom of Saudi Arabia owning more than 81.48% of the shares.

There is a maximum limit of 49% on total foreign ownership of Saudi Aramco shares, per the CMA & Exchange Rules and the company's bylaws. This limit is in place to prevent foreigners from gaining majority control of Saudi companies.

In addition, there are other restrictions on foreign investment in Saudi stocks. Regulations limit investment to financial institutions and billionaires. There are also limits on the number of shares any foreigner can buy, with a foreign investor allowed to own no more than 5% of the shares issued in any one company.

Non-Saudi investors can buy/sell Saudi Aramco shares on the Tadawul stock exchange by opening a brokerage account with one of the exchange members. Non-Saudi/GCC investors who are not residing in Saudi Arabia may acquire an economic interest in the company's shares by entering into a swap agreement with an Authorized Person.

The Tadawul stock exchange permits only established institutional foreign investors, not individual investors, to trade. A qualified foreign investor is defined as an entity with at least $5 billion in assets under management and has been in business for at least five years.

Dividend distribution policy

Saudi Aramco's dividend distribution policy was approved by the Selling Shareholder on 27/1/1441H, which corresponds to 26 September 2019. The policy states that it is the intention of the Board of Directors to declare dividends on a regular basis to build long-term shareholder value and provide sustainable dividend growth.

Dividends may be declared from net profits only after the company has ensured that they are capable of being distributed by referencing their most current financial statements. The company must also establish any financial reserves to meet contingencies as determined by the Board of Directors and take into consideration their working capital requirements, near-term liquidity, and any other relevant factors or considerations.

Saudi Aramco, the world's largest oil exporter, announced a total dividend of $31 billion to the Saudi government and other shareholders in 2024, despite a drop in first-quarter profits. The dividend comprised a $20.3 billion base dividend and a $10.8 billion performance-linked dividend distribution.

The ordinary dividend for each quarter is declared in SAR to institutional and individual public shareholders. The dividend payment represents the performance of the quarter that it relates to.

Contacting Saudi Aramco

Saudi Aramco is headquartered in Dhahran, Saudi Arabia. The company has a global presence, with offices in the Americas, Africa, Asia, and Europe.

Saudi Aramco's website provides a contact form for investors to reach out to the company or Investor Relations. The company also provides a phone number and email address for media inquiries.

For suppliers and customers, Saudi Aramco provides the following contact information:

• Supplier Helpdesk: Tel: 800 116 1168 (Domestic), +966 11 297 8950 (International), Email
• Supplier Portal Registration Support: Tel: +966 (13) 877 0135, Email
• Customer Care Center: Toll-free number: 800 305 5555, Fax: (+966) 013 862 1234

Additionally, Saudi Aramco has a General Auditor Hotline that provides a secure and confidential method for reporting suspected fraud, unethical conduct, or business irregularities related to the company. The hotline can be reached at:

Phone: +966 13 874-3333, Fax: +966 13 873-7775

For international applicants, the company provides a Global Directory on its website with specific contact information for its worldwide operations.

• Aramco Americas: Mailing Address - Aramco Americas P.O. Box 4534 Houston, TX 77002
• Aramco Far East (Beijing) Business Services Co., Ltd: 43/F, 45/F20-26, China World Tower 3, No.1 Jianguomenwai Avenue, Chaoyang District, Beijing, China 100004
• Aramco Asia India Pvt. Ltd: 2A-0801, 8th Floor, Two Horizon Center, DLF 5, Sector 43, Gurugram 122002, Haryana, India
• Aramco Asia Japan K.K: Marunouchi Building 26F 2-4-1 Marunouchi, Chiyoda-ku, Tokyo 100-6326, Japan
• Aramco Asia Korea Limited: 45, Three IFC, 10 Gukjegeumyung-ro Yeongdeungpo-gu, Seoul, 07326, Korea
• Aramco Overseas Malaysia Sdn Bhd: Level 32, Maxis Tower Kuala Lumpur City Center 50088 Kuala Lumpur

Frequently asked questions