Can I Buy Shares In Saudi Aramco
Not exactly. Sorry to disappoint but its not exactly a walk in the park, unless you live in Saudi Arabia, that is. As Saudi Aramco is on Tadawul, the stock market of Saudi Arabia, its hard for UK investors to invest in it. This is because Tadawul only allows established institutional foreign investors. This means that your average UK investor cant access it.
But just because you cant invest directly in Saudi Aramco, it doesnt mean you cant invest in other oil companies.
What Are The Risks Of Investing In Saudi Aramco Stock
The tech crackdown in China and more recently the Russia-Ukraine war highlighted the risks of investing in foreign stocks. As for Saudi Arabian stocks, the countrys economic policies dont encourage foreign investment in stocks, unlike say emerging countries like India which need foreign capital.
China stocks falling apart as investors start to realize the real risk of these foreign markets. These China stocks arent even real ownership interests $baba$jd$tcehy
Ross Gerber
Even if it wasn’t obvious, Saudi Aramco made it amply clear in its IPO filings. It said, The interests of the Government, the Companys controlling shareholder, may differ from the interests of the Company or the Companys minority shareholders.
Is Aramco Saudi Arabian Oil Corp Over Or Under Valued
In order to determine if Aramco Saudi Arabian Oil Corp stock is over or undervalued, one should utilise the P/E ratio.Earnings per share is the amount of a company’s net profit divided by the number of outstanding shares.Therefore, the higher the P/E ratio, the more overvalued a stock may be. Conversely, a lower P/E might indicate a more undervalued stock.You should consider the P/E ratio of 2222 before investing in Aramco Saudi Arabian Oil Corp stock.
A Aramco Saudi Arabian Oil Corp stock is thought to be overvalued when its current price does not line up with its P/E ratio or earnings forecast.For example, if Aramco Saudi Arabian Oil Corp stock price is 50 times higher its earnings, it is likely to be an overvalued stock compared to one thatis trading for 10 times its earnings.Other factors to consider when deciding whether Aramco Saudi Arabian Oil Corp stock is over or undervalued is the change in 2222fundamentals, the amount of free cash flow that Aramco Saudi Arabian Oil Corp has, and their price to book ratio. Aramco Saudi Arabian Oil Corphas a P/E ratio of 12.41.
Don’t Miss: Do You Have To Invest Your Roth Ira
Aramco Saudi Arabian Oil Corp Stock Stop Order
An Aramco Saudi Arabian Oil Corp stop order, also referred to as a stop-loss order, is an order to buy or sell a stock at the point in which the price of the Aramco Saudi Arabian Oil Corp stock reaches a specified price. This is known as the stop price. When the stop price is reached, a stop order becomes a market order. A buy stop order is entered at a stop price above the current market price.A stop order is therefore a type of instruction to trade Aramco Saudi Arabian Oil Corp shares if its price becomes lower than a specific price that is set, known as the stop price. For example, a stop order at $50 placed by the owner of Aramco Saudi Arabian Oil Corp stock currently trading at $53 means that it will sell this stock at the market price if the stock price hits $50.
Advantages of a Aramco Saudi Arabian Oil Corp Stop Order
The main advantage of using a stop order when purchasing or selling Aramco Saudi Arabian Oil Corp stock is that it provides you with the ability to enter or exit your Aramco Saudi Arabian Oil Corp stock trades at a future stop price which you can set.The primary benefit of a stop-limit order on your Aramco Saudi Arabian Oil Corp stock, therefore, is that you can control the price at which the 2222 order can be executed.Investors should use a stop order to limit a loss on their Aramco Saudi Arabian Oil Corp stock or to protect a profit on it that they have sold short.
Disadvantages of a Aramco Saudi Arabian Oil Corp Stop Order
What Will The Saudi Aramco Ipo Value Be
There is no confirmed Saudi Aramco IPO value yet. It has been reported that Saudi Crown Prince Mohammed bin Salman is after a $2 trillion valuation, but the final figure will depend on the outlook for oil prices, as well as Saudi oil production and exports. Ultimately, one of the worlds investment banks will set the Saudi Aramco IPO value.
Also Check: Investment Adviser Registration Fees By State
Aramco Saudi Arabian Oil Corp Peg Ratio
The PEG ratio, or price/earnings-to-growth ratio, is a measure that helps investors value a business by taking into consideration thecompany’s market price, earnings, and future growth potential.The PEG ratio can show if a stock is overvalued or undervalued in a more comprehensive way.
Aramco Saudi Arabian Oil Corp share price/earnings-to-growth ratio is computed by dividing its P/E ratio by its growth.A PEG ratio greater than one indicates that shares are overvalued at their current rate of growth, or that they may predict a faster rate of growth.
The PEG ratio, rather just the P/E ratio, provides a more comprehensive picture of Aramco Saudi Arabian Oil Corp’s potential profitability.It could also assist you compare the share prices of different high-growth firms by accounting for growth.
The Big Risks For Investors In The Aramco Ipo
The oil giants listing on the Saudi stock exchange carries three considerable dangers.
Its rare for a countrys fate to depend on the fortunes of a single company, but that is the case with Saudi Arabia and Aramco, the Saudi Arabian Oil Company, which is expected to list its shares in an initial public offering on the Saudi Arabian stock exchange in mid-December 2019.
On the face of it, this is an exciting moment for investors. The 80-year-old state company is the worlds most profitable, and potentially most highly valued corporation. Its listing is expected to be the worlds biggest IPO, surpassing the $25 billion raised by Alibaba in 2014. Aramco is widely thought to be well managed and well organized. Its principal productoilremains essential, even though oils preeminence is projected to end during this century. And Aramco has a reasonable strategy for navigating a fast-changing landscape: hedging bets with other oil producers while locking in long-term relationships with buyers.
But this will likely not be enough to persuade investors, especially Western investors, to buy in. First, oil companies no longer capture the imagination of investors. Second, a Saudi oil company comes with too much additional baggage. And whats more, Aramcos IPO is an anachronism: the time for sharing risk with foreign investors passed a decade or so ago.
Also Check: Best Podcasts For Investment Banking
Aramco Saudi Arabian Oil Corp Eps
EPS is a widely used indicator for measuring Aramco Saudi Arabian Oil Corp stock price value since it shows how much moneyAramco Saudi Arabian Oil Corp produces for each share of its stock.Investors will pay more for a Aramco Saudi Arabian Oil Corp share if they believe Aramco Saudi Arabian Oil Corp profits arehigher than the Aramco Saudi Arabian Oil Corp stock price,so a higher Aramco Saudi Arabian Oil Corp EPS signals more value.
Aramco Saudi Arabian Oil Corp has an earnings per share value of 2.68.
Stocks with EPS growth rates of at least 25% over the previous year’s levels indicate that a company’s products or services are in high demand.If the EPS growth rate has been increasing in recent quarters and years, that’s even better.
Investors Will Most Likely Be Tempted To Look At Owning Shares Of The World’s Largest Oil Company When It Ipos On The New York Stock Exchange However Recent Experiences With State
Last month, Saudi Arabia announced plans to maybe, possibly, IPO 5% of its oil industry.
In this segment from the Industry Focus: Energy podcast, Sean O’Reilly and Tyler Crowe go over what we know about the company so far and explain a few reasons why, in the event the IPO goes through, investors probably should stay away from the stock, at least for a while.
A full transcript follows the video.
A secret billion-dollar stock opportunityThe world’s biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn’t miss a beat: There’s a small company that’s powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, just click here.
This podcast was recorded on April 22, 2016.
Sean O’Reilly: Saudi Arabia really, really, really wants to raise a couple trillion dollars, it looks like. Or at least a couple hundred billion, from selling a 5% stake in what is the country’s arguably only industry. Why didn’t they do this a couple of years ago?
Tyler Crowe: There’s a couple things going on here. I’m not going to delve deep into Saudi Arabian politics because —
O’Reilly: Nobody knows.
Crowe: I don’t know that very well. As you’ve seen, there’s been some rather vocal commentary coming out from the kingdom. Not the king, but —
O’Reilly: Various princes are saying this.
Also Check: How To Open An Investment Account For A Child
Aramco Saudi Arabian Oil Corp Cfd And Stock Market Times
When trading in traditional Aramco Saudi Arabian Oil Corp shares you are limited to when the Saudi Stock Exchange stock exchange is openwhich is Sunday through Thursday from 10:00am to 3:00pm GMT+3 hours on trading days.You can only buy and sell with your broker when the market is open.With CFD trading you can deal 24/7 around the clock.
Why Is The Ipo Such A Big Deal
The sale of part of Aramco forms the foundation of Crown Prince Mohammed bin Salman’s turnaround plan for Saudi Arabia. The size of the listing remains in the air, but originally it was hoped it could generate as much as $100 billion .
That money is needed to fund mega-projects such as NEOM, a $500 billion futuristic mega city planned on the northern Red Sea coast, which officials say will have flying taxis and talking robots.
Read Also: Can I Invest My 401k In Gold
For Qualified Foreign Investors :
In order to access the Saudi Exchange, Qualified Foreign Investors must be assessed and approved by an assessing authorized person prior to placing an order in the market through one of Saudi Exchange’s members.
To open an investment account for registered QFI, the following requirements should be submitted:
- QFI details form.
- A copy of the certificate of incorporation or commercial register or an equivalent document.
- Disclosure of the QFIs investments in listed companies.
For more information on how to become an Investor, please call us at +966 92000 1919. You may also contact us via email at
Limits To Direct Investment In Saudi Stocks
There are a number of other limits to direct investment in Saudi companies:
- A foreign investor may own no more than 5% of the shares issued in any one company.
- All foreign investors may collectively own no more than 49% percent of any company’s shares.
- All qualified foreign investors collectively are limited to 20% of a single company’s shares and 10% of all of the shares of all of the companies listed on the exchange.
Foreigners who want to invest in Saudi Arabian stocks generally work through one of the global institutions that do business there.
Limits on foreign ownership prevent foreigners from gaining majority control of Saudi companies.
Morgan Stanley and Credit Suisse Group are among the global banks that have offices in Riyadh. These branches act as hubs for brokers and qualified foreign investors that invest in any of the GCC nations.
Recommended Reading: App For Investing In Startups
Should I Trade Aramco Saudi Arabian Oil Corp Stocks And Shares Or Aramco Saudi Arabian Oil Corp Cfds
There are pros and cons to trading in both Aramco Saudi Arabian Oil Corp Stocks and CFDs. Which is better depends on each investor and a few factors.
Investing in Aramco Saudi Arabian Oil Corp stocks and shares is better suited for long term investments.Historically Aramco Saudi Arabian Oil Corp shares provide better returns over the long term, usually a 10 year period.
Aramco Saudi Arabian Oil Corp CFD trading is more suited to intra day and mid term traders. Wth intra day trading on an Aramco Saudi Arabian Oil Corp shareinvestors aim to profit on the fluctuating highs and lows of the Aramco Saudi Arabian Oil Corp price throughout the day.Day trading as you can imagine focuses on profiting from the daily Aramco Saudi Arabian Oil Corp stock price change.
Both types of trading have different benefits and risks.Make sure you have a good understanding of what you are doing before you invest.
With CFD trading as you can short or long an Aramco Saudi Arabian Oil Corp stock you can hedge a trade against another trade.
A hedge is an investment that protects the money you have invested from risk.Traders hedge to minimize or offset a loss in value of an Aramco Saudi Arabian Oil Corp share price for example to a known amount.
Etoro Market Leading Broker Built On Social Trading Innovation
eToro is an innovative social trading platform that offers users the chance to trade over 800 stocks as CFDs, including Aramco stock. It’s famous for its CopyTrader tool, which allows you to follow and mimic the positions of high performing investors.
This means you can speculate on Aramcos price fluctuations without actually buying stock. With CFD trading you can open short positions, meaning you can bet on a stock dropping in value as well as rising. CFD trading also gives you the option of using leverage, allowing you to boost the value of a trade with capital borrowed from the broker.
You can open an account with as little as $200, so dipping your toe in and giving CFD trading a go is relatively affordable. You can also trade Aramco CFDs with no commission, and the spreads are competitive.
You can get to grips with the eToro platform for free courtesy of a demo option that gives you $100,000 in practice funds to play with, which is a great way to build your knowledge and experience before risking any real money.
Our Rating
You May Like: Is Real Estate Investing Better Than Stocks
Aramco Saudi Arabian Oil Corp Trading Volume
Aramco Saudi Arabian Oil Corp stock trading volume can assist an investor in determining the strength of Aramco Saudi Arabian Oil Corp stock pricemomentum and confirming a trend.Aramco Saudi Arabian Oil Corp stock prices tend to move in the same direction as Aramco Saudi Arabian Oil Corp trade volume increases.If a Aramco Saudi Arabian Oil Corp stock price continues to rise in an uptrend, Aramco Saudi Arabian Oil Corp stock trading volume should rise as well,and vice versa.
Aramco Saudi Arabian Oil Corp has a trading volume of 2
The sentiment driving Aramco Saudi Arabian Oil Corp stock price movement is measured by Aramco Saudi Arabian Oil Corp trading volume.It informs you of the number of persons involved in the Aramco Saudi Arabian Oil Corp stock price movement.When Aramco Saudi Arabian Oil Corp stock trades on low volume, it signifies that only a small number of people areinvolved in Aramco Saudi Arabian Oil Corp stock buying and selling transactions.The market interest in Aramco Saudi Arabian Oil Corp stock can be measured by its trading volume.
Aramco Business Model And Share Price History
Officially known as the Saudi Arabian Oil Company, Saudi Aramco is the worlds biggest oil producer, most profitable business and, since its blockbuster IPO last December, the most valuable company on the planet.
Aramco, which is controlled by the Saudi state, went public in December 2019, selling off a 1.5% stake for $25.6 billion in an IPO that valued the company at $1.7 trillion. After two days of trading the value leaped up even higher, making Aramco the worlds first $2 trillion company.
The Aramco IPO is linked Saudi Crown Prince Mohammad bin Salmans Vision 2030 plan, which seeks to reduce the countrys dependence on oil by diversifying its economy. To do this, Saudi Arabia needs a multi-trillion-dollar mega-fund. The Aramco float is part of this fundraising strategy.
As impressive as Aramcos IPO undoubtedly was, the company finds itself in the midst of a challenging, geopolitically fraught oil market. Indeed, the first few months of 2020 have seen a collapse in oil prices that sent SAOC shares into freefall.
This came about because Saudi Arabia ramped up its oil output, and lowered its price, in response to a spat with Russia and the collapse of the OPEC deal after three years of cooperation. The situation has since been stabilized thanks to a new OPEC deal that will see member states cut output to offset a global slump in demand.
Also Check: Can You Make Money Investing In Cryptocurrency
Make Sure Your Aramco Saudi Arabian Oil Corp Stock Broker Offers Comprehensive Trader Resources
Ensure that the broker you decide upon to tradae Aramco Saudi Arabian Oil Corp stocks or CFDs provides free tools such as evaluation, schooling and risk-management tools.
Having a wealth of knowledge from great analysts brokers like and offer lots of resources to bring the latest news and insights to traders. Click through to the brokers to learn more.
Here Are Some Quick Facts About Aramco
- Aramco has over 260 Billion Barrels of Oil in it’s Reserves Exxon in comparison has just 24 billion of oil reserves.
- Aramco Saudi is the largest integrated oil and gas company in the world
- In the first 9 months of this year, Aramco had net income of $68 billion.
- Chinese state entities are in talks to pick up $5-10 billion worth of the IPO
- Aramco plan to pay a dividend of $75 Billion in 2020!
- This could be the largest IPO in history
Aramco Saudi is going to be listed on the Tadawul Saudi Stock Exchange on December 4. There are plans in the works to potentially list on other markets around the world as well.
Don’t Miss: Is Prudential A Good Company To Invest With
