Saudi Aramco, officially known as the Saudi Arabian Oil Company (SAOC), is the largest oil producer in the world. With headquarters in Dhahran, Saudi Arabia, Aramco dominates the global oil and gas industry. Many investors are interested in buying Aramco shares to gain exposure to the lucrative oil market.
But can you actually buy Aramco shares in the UK? Let’s take a look at everything you need to know to invest in this oil giant.
What is Saudi Aramco?
Saudi Aramco is Saudi Arabia’s state-owned oil company. It manages the Kingdom’s vast oil and gas reserves, estimated at over 200 billion barrels of oil equivalent. This makes Saudi Arabia home to the second largest proven petroleum reserves in the world after Venezuela.
Aramco operates across the entire oil and gas value chain, from exploration to production, refining, distribution, and marketing. It produces approximately one in every eight barrels of crude oil produced globally.
Some key facts about Saudi Aramco:
- Saudi Ararding to Stabia’s most valuable company and the world’s most profitable company in 2022, according to Statista.
- Produces over 10 million barrels of crude oil per day.
- Owns the Ghawar oil field, the world’s largest conventional oil field.
- Operates the Master Gas System, the world’s largest natural gas processing facility.
- Has a refining capacity of over 5 million barrels per day.
- Employs over 70,000 workers worldwide.
Can I Buy Aramco Shares in the UK?
The short answer is no. Saudi Aramco shares are not available to purchase directly on UK stock exchanges. Most individual investors will also not gain access to the Saudi Stock Exchange (Tadawul), where Aramco shares are listed. When Saudi Aramco debuted on the Tadawul in December 2019, shares were only made available to purchase by Saudi Arabian citizens, residents of Gulf Cooperation Council (GCC) countries, and certain qualified foreign institutional investors.
Citizens and residents of the UK do not have access to purchase Aramco shares directly. However, you can use some indirect ways to gain exposure to Saudi Aramco stock, which we’ll cover next. This is crucial for those wondering how to buy Aramco shares in the UK.
How to Invest in Aramco Shares from the UK
While you can’t directly buy Saudi Aramco shares, UK investors still have a few options to do so. Among them are contracts for difference (CFDs), exchange-traded funds (ETFs), and corporate bonds. You should choose a good stock broker or trading company to do so.
| Company | Commissions | Minimum Deposit |
| eToro | $0 | $50 |
| Interactive Brokers | $0.0050 per share CFD (volume under 300,000 per month) | $0 |
| Saxo Bank | From $0.70 per share CFD | $2,000 |
Purchase Aramco Shares via CFD
Some international online brokers give UK investors access to purchase shares listed on the Tadawul stock exchange. For example, the multi-asset trading platform eToro allows you to buy and sell Aramco shares alongside other global stocks
You must remember, however, that in the case of a CFD contract, you do not become the actual owner of the shares. You can still profit from both the declines and increases in Aramco’s stock, but you won’t become a shareholder.
Invest in an Exchange-Traded Fund (ETF)
Another option is to invest in an ETF that provides exposure to Saudi Aramco shares:
- Invesco MSCI Saudi Arabia ETF (MSAP) – This ETF invests in Saudi equities, including a major position in Aramco
- iShares MSCI Saudi Arabia Capped UCITS ETF (IKSA) – This ETF available on LSE also tracks the MSCI Saudi Arabia 20/35 index, where Aramco shares are listed.
The benefit of ETFs is they let you invest in Aramco shares as part of a diversified basket of stocks. The downside is you don’t have control over the weighting. Check our separate review if you want to search for the best ETF broker in the UK.
Invest in Aramco Bond Offerings
Saudi Aramco has issued international bonds that are open to UK investors. For example, in 2019, Aramco launched a $12 billion bond offering on the London Stock Exchange, which was open to qualified UK traders.
Aramco bonds are available, among other places, through Interactive Brokers. While not exactly the same as owning shares, Aramco bonds can provide exposure and income from the company’s cash flows.
Step-by-Step Guide to Buying Aramco Shares
If you decide to purchase Aramco shares using a CFD broker, here is a step-by-step guide. In this example, we describe the purchase process using the eToro platform, but you can also take advantage of offers from other brokers we recommend. This guide is particularly useful for those looking to understand how to buy Aramco shares in the UK.
- Go to the eToro online platform. You can open an account here if you are not a client already.
- In the search bar, type “Aramco” and click on the SAOC option.
- In the upper right corner, click the green TRADE button.
- You will see a window titled “Buy SAOC.” Specify the value of your position. We recommend that it not exceed 10% of your total deposit. Also, remember to set a stop-loss order and a take-profit order, which will close the position when the price reaches a specified level.
Thanks to CFD contracts, you can also use financial leverage on SAOC shares, but we recommend that beginner investors invest without leverage. After setting all the position variables, simply press the “Set order” button.
- If everything goes smoothly, you will see a confirmation message at the bottom of the screen indicating that the position has been established.
- To monitor how your position is performing, go to the Portfolio tab.
Is Buying Aramco Shares a Good Investment?
For suitable investors, Aramco shares can provide exposure to the vast oil wealth of Saudi Arabia. But risks exist, so remember about appropriate due diligence before putting your money at stake.
| Category | Pros of Investing in Saudi Aramco | Cons of Investing in Saudi Aramco |
| Financials | High profitability and strong dividend history | Revenue dependent on global oil prices |
| Resources | Massive oil reserves and production capacity | Limited diversification beyond oil and gas |
| Strategic Importance | The cornerstone of Saudi Arabia’s economy | Susceptible to changes in Saudi government policy |
| Growth Potential | Opportunity for growth as Saudi Arabia diversifies its economy | Uncertain pace of economic diversification |
| Geopolitical Factors | Relatively stable compared to other Middle East nations | Geopolitical risk in the Middle East region |
| ESG Factors | Some initiatives to invest in renewable energy | ESG concerns around oil and gas investments |
| Currency Risk | The potential for high returns could offset currency risk | Foreign exchange risk investing in SAR currency |
Conclusion
While UK investors can’t directly buy Aramco shares, there are some alternatives you can use. Purchasing through an international broker or investing in ETFs can provide access for suitable investors.
As with any investment, thoroughly research and evaluate your risk tolerance before buying Aramco shares.
FAQ
Can you buy Aramco shares in the UK?
No, Aramco shares are not available to directly purchase on UK stock exchanges. Only Saudi Arabian citizens, GCC country residents, and qualified foreign institutional investors can buy shares on the Saudi Stock Exchange, where Aramco is listed. This makes it challenging for those wondering how to buy Aramco shares in the UK.
Which ETF contains Saudi Aramco?
Some ETFs that provide exposure to Saudi Aramco shares include the iShares MSCI Saudi Arabia ETF (KSA) and Invesco MSCI Saudi Arabia ETF (KSA). These ETFs invest in a basket of Saudi stocks, including a major allocation to Aramco.
How to invest in Saudi stocks?
As a foreigner, directly investing in Saudi stocks like Aramco is restricted. Alternatives include using an international broker that offers access to the Saudi market, investing in ETFs containing Saudi stocks, or participating in Aramco bond offerings when available.
What is the trading name of Aramco?
The official trading name of Saudi Aramco on the Tadawul stock exchange is Saudi Arabian Oil Company, with the ticker symbol 2222.
Who is the largest shareholder of Aramco?
The Saudi Arabian government is the largest shareholder of Saudi Aramco, owning over 98% of the company. Only about 1.5% of Aramco’s shares are publicly held.
Is Saudi Aramco publicly traded?
Yes, Saudi Aramco has been publicly traded on the Saudi Stock Exchange (Tadawul) since its IPO in December 2019. However, only a small portion of shares are available to the public.
Does Aramco have shareholders?
Yes, Aramco has shareholders from its public listing. However, the vast majority of shareholders are institutional investors and the Saudi government which retains over 98% ownership.
Is Aramco listed on the London Stock Exchange?
No, Saudi Aramco is only listed on the Saudi Stock Exchange (Tadawul). It is not listed on the London Stock Exchange or any other foreign exchanges.
Can you buy shares without a broker in the UK?
No, to buy company shares listed on the London Stock Exchange, you need to use a licensed UK stockbroker. The broker executes the trades on your behalf on the exchange.