Summary: Anyone can invest in Saudi Aramco (SAOC), one of the world’s largest and most valuable companies. The most convenient way to buy Saudi Aramco stock is through a reputable brokerage platform such as our go-to option, eToro.
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About Saudi Aramco
As the largest oil producer globally, Saudi Aramco plays a pivotal role in the energy sector, holding vast reserves of oil and gas. Moreover, it operates a massive network of production facilities, refineries, and distribution terminals, enabling it to supply energy to both domestic and international markets.
Due to its significant influence in the global energy market, Saudi Aramco’s performance can have far-reaching implications for the world economy and geopolitical dynamics. All this, therefore, makes it one of the most attractive investments, with many investors looking to buy its stocks and potentially make a profit.
Saudi Aramco stock trades on the Saudi Stock Exchange (Tadawul), under the symbol 2222.
Saudi Aramco IPO
In 2019, Saudi Aramco made history by launching its IPO, becoming the world’s largest public offering. The IPO provided investors with an opportunity to own a part of this mega-corporation, so let’s take a look at how you can do it as well.
How to buy Saudi Aramco stock: Step-by-step process
If you’re interested in buying Saudi Aramco stock, you can follow our step-by-step guide right here:
Step 1: Research and educate yourself
Before diving into any investment, it’s crucial to conduct thorough research and educate yourself about the company and the stock market. Therefore, we recommend that you first understand Saudi Aramco’s business, its financial performance, and its growth prospects. Additionally, you can learn about how the stock market works, different investment strategies, and potential risks associated with investing in stocks.
Step 2: Chose a reliable brokerage account
To buy Saudi Aramco stock, you’ll need to open a brokerage account. A brokerage account is a platform that allows you to buy and sell stocks. Therefore, look for a reputable and user-friendly brokerage platform that suits your needs.
While doing so, consider factors such as:
- Fees;
- Saudi Aramco stock availability;
- Trading tools;
- Customer support;
- Ease of use.
During our research for this guide, we found the eToro service to be the best option for investing in Saudi Aramco stock. The broker offers:
- Commission-free stock trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- Copy-trading feature and Smart Portfolios;
- User-friendly platform.
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
Step 3: Fund your account
After registering on a brokerage platform, you’ll need to fund your newly-made account with the amount you want to invest in Saudi Aramco stock. The funding options typically include bank transfers, wire transfers, and online payment methods. The process of funding an account is pretty straightforward, regardless of which broker you choose. So, just follow along with the instructions your chosen platform provides you with.
Step 4: Place an order and buy Saudi Aramco stock
When buying Saudi Aramco stock, you can use market orders or limit orders. Namely, a market order is executed immediately at the current market price, ensuring swift trade execution but uncertain pricing. On the other hand, a limit order allows you to set a specific price at which you’re willing to buy the stock.
You should pick the order type based on your investment goals, risk tolerance, and market conditions. Nevertheless, remember that stock prices can fluctuate, so make well-informed decisions aligned with your investment strategy and objectives.
Step 5: Monitor your investment
To make the most of your investment in Saudi Aramco stock, responsible investing goes beyond becoming a shareholder. You can stay informed and proactive by:
- Monitoring company performance: Regularly review financial reports and earnings to gauge the company’s stability and growth prospects;
- Tracking industry trends: Understand how energy market trends may impact Saudi Aramco’s stock value, considering factors like global oil prices, geopolitics, technology, and regulations;
- Staying updated on news and events: Keep an eye on reputable financial news sources for announcements, mergers, acquisitions, or regulatory changes that can affect stock prices;
- Assessing investment goals: Reevaluate your investment strategy periodically, focusing on long-term objectives and risk tolerance.
Pros and cons of buying Saudi Aramco stock
Pros
- Steady income: As a major player in the global energy sector, Saudi Aramco has access to vast oil reserves, which can provide a relatively stable source of income. This can be attractive to income-focused investors;
- Dividends: Saudi Aramco is a dividend-paying company, with a 6.6% annual dividend yield, providing a source of passive income;
- Potential for capital appreciation: If the company performs well and the global oil market is strong, there may be opportunities for capital appreciation of the stock;
- Energy sector exposure: Investing in Saudi Aramco can provide exposure to the energy sector, which can be appealing for those who believe in the long-term prospects of the industry;
- Government support: As a state-owned company, Saudi Aramco may have the backing and support of the Saudi Arabian government, which can provide some level of stability and resources.
Cons
- Volatility: The energy sector, and particularly oil-related companies, can be highly volatile. Oil prices are influenced by various factors, including geopolitical tensions, supply and demand dynamics, and technological changes;
- Geopolitical risk: Saudi Aramco’s operations are subject to geopolitical risks, which can affect the company’s operations and profitability;
- Lack of transparency: State-owned companies like Saudi Aramco may have less transparency and disclosure compared to publicly traded companies, making it more challenging for investors to assess the company’s financial health;
- Environmental concerns: Investing in a fossil fuel company like Saudi Aramco may raise ethical concerns for some investors, given the environmental impact of the oil and gas industry;
- Government control: As a state-owned entity, Saudi Aramco’s decisions may be influenced by political considerations, which can impact its business decisions and shareholder interests.
What to avoid when buying stocks
While investing in Saudi Aramco, or any other stock for that matter, can be rewarding, it’s key to avoid making common mistakes. To do so, make sure you don’t indulge in:
- Emotional investing: Avoid making investment decisions based on emotions or short-term market fluctuations. Instead, stick to a well-thought-out investment plan;
- Overconcentration: Diversification is key to reducing risk, so avoid putting all your funds into a single stock or sector;
- Chasing tips: Be wary of investment tips from unreliable sources, and make decisions based on your research and analysis;
- Ignoring fees: Watch out for brokerage fees and transaction costs, as they can eat into your profits over time.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy Saudi Aramco stock
Can non-Saudis buy Saudi Aramco stock?
Yes, non-Saudis can buy Saudi Aramco stock through international exchanges where it is listed.
What is the stock symbol for Saudi Aramco?
The stock symbol for Saudi Aramco varies depending on the exchange it is listed on. For example, on the Tadawul (Saudi Stock Exchange), it’s 2222.
Is buying Saudi Aramco stock risky?
All investments come with risks. While Saudi Aramco is a stable and profitable company, its stock can still be affected by market fluctuations and other factors.
Can I buy Saudi Aramco stock directly from the company?
No, you can only buy Saudi Aramco stock through a brokerage account.
Is Saudi Aramco a public traded company?
Yes, Saudi Aramco has gone public. However, only a small portion of its shares were made available to the public in an initial public offering (IPO), with the majority of the company remaining under the ownership of the Saudi Arabian government.
How can I buy shares in Saudi Aramco?
To buy Saudi Aramco stock, it’s recommended to open an account with a broker like eToro that provides access to international stocks, including those on the Saudi Stock Exchange where Saudi Aramco is listed. With an eToro account, you can easily find Saudi Aramco using its ticker symbol SAOC. You can then place your order by selecting the desired number of shares and finalize the transaction, making the process straightforward and accessible.
Can you buy Saudi Aramco Stock in the USA?
Buying Saudi Aramco stock in the USA involves finding a brokerage firm that provides access to the Saudi Stock Exchange (Tadawul), such as eToro. After setting up and funding your account, you can locate Saudi Aramco by its ticker symbol SAOC and proceed to buy its stock.
How much is Saudi Aramco stock dividend?
As of July 2024, Saudi Aramco stock dividend yield (annual) is 6.6%.
Is Saudi Aramco stock on the New York Stock Exchange?
No, Saudi Aramco shares are only listed on Saudi Arabia’s own Tadawul exchange and are not listed on the NYSE.
Who is the largest shareholder of Saudi Aramco?
The largest shareholder of Saudi Aramco is the government of Saudi Arabia, owning the majority of the company’s shares.
Is Saudi Aramco on US stock exchange?
No, Saudi Aramco stock is only listed on Saudi Arabia’s Tadawul exchange and is not listed on US stock exchanges.
Can foreign investors buy Saudi Aramco stock directly?
Yes, foreign investors can now buy Saudi Aramco stock directly through international brokerage platforms like Interactive Brokers, which, as of October 2024, offers access to the Saudi Stock Exchange (Tadawul).
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
