Saudi oil giant cuts 'world's largest' dividend, impacting Saudi budget

On March 4th, Jinshi data reported that Saudi Aramco cut the ‘world’s largest’ dividend, dealing a blow to Saudi Arabia’s expanding budget deficit. The company is seeking to alleviate its financial pressure. On Tuesday, Saudi Aramco stated that the dividend for 2025 is expected to be around $85 billion, compared to $124 billion last year. The distribution of this money has always been a focus of investors and economists, as the level of these payments may determine how much more money the Saudi government needs to borrow to fill the budget deficit. As Saudi Crown Prince Mohammed bin Salman continues to advance his trillion-dollar economic transformation plan, the significance of this dividend to Riyadh is growing. With oil sales revenue and generous dividends, Saudi Aramco has been a key driver of this initiative. However, the hefty dividend has begun to expand the company’s balance sheet and recently pushed it into a net debt position, a significant shift compared to over $27 billion in net cash a year ago.