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Saudi Arabia’s state-owned oil giant Aramco reported a $106.25 billion profit in 2024, marking a 12% decline from the previous year as falling energy prices put pressure on the kingdom’s multi-trillion-dollar development plans, Associated Press reporter Jon Gambrell reported.
A filing on the Riyadh Tadawul stock exchange showed that Aramco recorded $436 billion in revenue in 2024, compared to $440.88 billion in 2023. I Photo: Aji Lajami Wikimedia Commons
Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman (MBS), is already facing financial challenges in funding his $500 billion megaproject, NEOM—a futuristic city being built in the western desert along the Red Sea.
In addition, the kingdom will need to spend tens of billions of dollars on stadiums and infrastructure ahead of hosting the 2034 FIFA World Cup.
Meanwhile, MBS has pledged up to $600 billion in investments in the U.S.—a move widely seen as an effort to secure President Donald Trump’s first foreign visit as president. Saudi Arabia is also being considered as a possible venue for a Trump-Putin meeting to discuss Russia’s war in Ukraine.
With OPEC+ moving toward increasing oil production, Saudi Arabia may have to take on new debt to finance the crown prince’s ambitious projects.
A filing on the Riyadh Tadawul stock exchange showed that Aramco, formally known as Saudi Arabian Oil Co., recorded $436 billion in revenue in 2024, compared to $440.88 billion in 2023.
Despite these figures, Aramco’s profits have been in steady decline:
2022: Record profit (undisclosed amount)
2023: $121 billion profit
2024: $106.25 billion profit (-12% YoY)
In its official filing, Aramco attributed the decline to:
Lower overall revenue and other income from sales
Higher operating costs
Decreased finance and investment income
With Saudi Arabia’s ambitious spending plans on the line, falling oil revenues could force the kingdom to seek alternative funding sources or adjust its development goals.
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