Halal Stocks

Aramco: The Most Valuable Shariah-Compliant Company in MENA

Saudi Aramco is the largest Shariah-compliant company in MENA, with a $1.5T market cap in 2025. This article explores its financial strength, sukuk strategy, and AAOIFI compliance, making it the top halal investment opportunity for Muslim investors.

Salma Hany

30 Sep 2025 — 5 min read

Aramco: The Most Valuable Shariah-Compliant Company in MENA

Saudi Aramco has cemented its place as the largest company in the Middle East and North Africa (MENA) by market capitalization in 2025. It combines unmatched energy production capacity with consistent financial strength, making it a cornerstone of the global economy. The company also upholds strict Islamic finance principles in line with AAOIFI standards, ensuring its operations and financing remain Shariah-compliant.

This article explores Aramco’s business model, financial performance, and commitment to ethical investing, while highlighting the role of the AAOIFI framework in strengthening its position as a trusted Shariah-compliant giant.

A Titan Backed by Numbers

Saudi Aramco continues to reign as the largest publicly traded company in the MENA region, with a market capitalization exceeding $1.5 trillion as of August 2025. In full-year 2024, net income dropped by 12% to $106.2 billion (from $121.3 billion in 2023), yet its sheer scale remains unmatched.

In Q1 2025, Aramco posted net income of $26.0 billion, modestly down by 4.7% from the previous year, while maintaining a strong operating cash flow of $31.7 billion and free cash flow of $19.2 billion. By Q2, it delivered a combined H1 adjusted net income of $50.9 billion, with operating cash flow totaling $59.3 billion and free cash flow at $34.4 billion.

Aramco also reaffirmed its generous dividend strategy: a base dividend of $21.1 billion per quarter and a modest $0.2 billion performance-linked payment, setting total dividends expected in 2025 at $85.4 billion, down from 2024’s historic $124.4 billion payout.

Aramco’s Financing Strategy

Aramco’s financing strategy blends conventional bonds and Shariah-compliant sukuk to align with both investor demand and ethical governance.

In May 2025, it issued $5 billion in bonds across three tranches (2030, 2035, 2055) with competitive coupon rates between 4.75% and 6.375%, all listed on the London Stock Exchange.

Crucially, on the Islamic finance front, Aramco prepared in September 2025 to issue $3 - 4 billion in U.S. dollar–denominated sukuk, reinforcing its Shariah-compliant commitment by offering asset-backed, interest-free investment alternatives. Previously, in October 2024, it completed a $3 billion sukuk issuance, split into two tranches (2029 and 2034 maturities at profit rates of 4.25% and 4.75%, respectively), both oversubscribed by sixfold.

Shariah Compliance and AAOIFI Standards

Aramco stands out from many global energy firms because it is recognized as Shariah-compliant. This distinction is certified through its financing approach and asset-backed structures, which align with the standards of respected Islamic finance scholars and firms.

As of 2025, Aramco’s financing activities, including its international sukuk programs, are structured according to AAOIFI standards. The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is an independent non-profit body that develops widely accepted Shariah standards for Islamic banking, capital markets, and investments. Its frameworks are the global benchmark for halal financial practices.

AAOIFI’s guidelines apply a two-pillar approach: qualitative and quantitative screening. The qualitative aspect ensures that companies avoid prohibited industries such as alcohol, gambling, pork, and weapons. The quantitative side limits interest-bearing debt and non-compliant activities to no more than 30% of market value, while non-halal income must remain below 5% of total revenue.

By following these criteria, Aramco ensures that its sukuk and broader financing practices remain free from riba (interest) and other prohibited elements. This gives confidence to both institutional and retail investors who prioritize ethical and faith-driven investments.

For platforms like Tabadulat, which emphasize Shariah compliance in investment offerings, Aramco represents an ideal case. Its sukuk issuances are reviewed against AAOIFI standards, giving investors assurance that they are not only buying into one of the world’s largest companies but also aligning with Islamic financial ethics.

Challenges Amid Resilience

Saudi Aramco is grappling with several significant challenges. The company's stock has plummeted nearly 40% from its 2022 peak, wiping out more than $800 billion in value and underperforming its major competitors. This decline directly impacts Saudi Arabia's ability to raise funds from future stock sales.

In addition, while Aramco's dividend is the highest in the industry, it's expected to be cut this year. Even at a reduced rate, the dividend still exceeds the company's free cash flow, which is not a sustainable long-term model.

Still, its profitability and ability to maintain dividend payouts despite these challenges underscore solid fundamentals. For Shariah-conscious investors, who often favor low-default, asset-backed structures, Aramco’s sukuk remain compelling.

In summary, Aramco’s position in 2025 reflects more than sheer market capitalization—it embodies the intersection of financial scale, global energy leadership, and strict adherence to Shariah principles. Despite stock market volatility and dividend pressures, the company continues to demonstrate resilience with massive cash flows, steady sukuk issuances, and alignment with AAOIFI standards. For Shariah-conscious investors, this makes Aramco more than an oil giant; it is the most valuable halal investment opportunity in MENA, combining profitability with ethical governance. Looking ahead, Aramco’s ability to balance its financial strategy with Shariah compliance will not only secure investor trust but also reinforce its role as the benchmark for sustainable, faith-aligned investing in global markets.

FAQs

Who is Aramco owned by?

Saudi Aramco is majority-owned by the Saudi government through the Ministry of Energy and the Public Investment Fund (PIF). While a small portion of its shares trade publicly on the Saudi Stock Exchange (Tadawul), the Kingdom retains overwhelming control over the company’s strategy and operations.

What is the richest company in Saudi Arabia?

Saudi Aramco is the richest company in Saudi Arabia, with a market capitalization exceeding $1.5 trillion in 2025. It dominates the Kingdom’s economy through massive oil and gas production, strong cash flows, and unmatched dividend payouts, making it the financial backbone of Saudi Arabia’s Vision 2030 strategy.

What does Aramco stand for?

Aramco stands for the Arabian American Oil Company, its original name when founded in 1933 as a joint venture between Saudi Arabia and several U.S. oil firms. In 1988, the company was fully nationalized and officially renamed Saudi Arabian Oil Company (Saudi Aramco), while retaining the shortened global brand.

How can I buy Aramco stock?

Investors can buy Aramco stock through the Saudi Stock Exchange (Tadawul). International investors can access these shares via authorized brokers or online investment platforms such as Tabadulat, which offers Shariah-compliant trading solutions aligned with Islamic finance standards.

Who is CEO of Aramco?

As of 2025, the CEO of Saudi Aramco is Amin H. Nasser, who has held the role since 2015. He oversees the company’s global operations, strategic growth, and energy transition efforts.

What nationality is Aramco?

Saudi Aramco is a Saudi Arabian company headquartered in Dhahran. It is majority-owned by the Saudi government and serves as the Kingdom’s most valuable asset, reflecting both national identity and economic strength.