The Saudi Arabian Oil Company plans to create two new divisions. Picture: MAYA SIDDIQI/BLOOMBERG
The Saudi Arabian Oil Company plans to create two new divisions. Picture: MAYA SIDDIQI/BLOOMBERG

Saudi Aramco is close to claiming the prized position of the world’s most valuable company from Apple.

The Saudi state-owned oil giant has soared on the back of higher energy prices, bringing its market value to $2-trillion, just shy of Apple at $2.3-trillion.

The share prices of the two corporate giants are symbolic of how the global economy is changing in 2021. Apple shares have suffered as consumers rein in spending on home entertainment and get back into the world. All that transportation activity has sparked a boom in oil prices that feeds directly to Aramco’s bottom line.

Aramco is mostly owned by the government of Saudi Arabia, with just less than 2% of the company publicly listed on the Saudi Tadawul stock exchange. 

The company has stuck to its promise to pay an annual dividend of $75bn until 2024 to shareholders, the biggest of which is the government, reports said.

There’s reason to believe that Aramco could continue climbing. Bank of America analysts have said the global energy crunch could help propel oil prices above $100 a barrel for the first time since 2014.

At the same time, Apple is coming under pressure as investors turn cautious on expensive tech stocks amid rising bond yields.

Bloomberg News. More stories like this are available on bloomberg.com

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