Aramco has been central to Saudi Arabia’s economic growth, but the nation is now pushing to diversify beyond oil. The company, which started in 1933 and became fully state-owned by the late 1980s, remains a cornerstone of the kingdom’s finances, generating about 60% of government revenue and playing a key role in the nation’s GDP.
Recent years have seen Aramco evolve, positioning itself as a technology-driven energy company. Advances in digitization and the integration of artificial intelligence have improved operations and efficiency. The development of Aramco Meta Brain, a proprietary AI model, helps optimize processes and decision-making across the company.
To support the government’s Vision 2030 initiative, Aramco is investing in renewable energy sources like solar, wind, and hydrogen, alongside expanding its gas production. The company aims to grow its gas business by 60% by 2030 and is also focusing on carbon capture and storage, while maintaining robust oil and gas operations.
Despite diversification efforts, challenges remain. OPEC+ production cuts and recent budget deficits have impacted government spending and investment projects. Aramco has increased its presence in debt markets to manage capital costs, while its dividend payments to the state are under scrutiny given current cash flows.
Security remains a priority, especially after past attacks on facilities. The government has responded by seeking regional stability and restoring diplomatic ties, notably with Iran.
Aramco is committed to environmental goals, targeting net zero emissions for its own operations by 2050 and boasting low upstream carbon intensity. However, the company acknowledges that broader emissions from oil use remain significant.
As Saudi Arabia transforms, Aramco is balancing its traditional strengths with investments in new energy and technology, aiming to maintain leadership in a changing global market while supporting the kingdom’s broader economic ambitions.