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Saudi Aramco: A Blend between Profit and Politics

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  • Jashim Uddin Ahmed
  • Hafiza Sultana
  • Md. Muinuddin Khan

Abstract

The case study is based on Saudi Aramco, the largest state-owned oil company of the Kingdom of Saudi Arabia (KSA), which has become a world leader in hydrocarbons exploration, production, refining, distribution and marketing. The study analyses the organization’s strategies, product lines, domestic and global operations, key performance, recent initiatives for an IPO, and role in economic development and politics of the kingdom in the backdrop of global oil market. Through a combination of own facilities and joint ventures, Aramco produces a slate of refined products and high-value petrochemicals for domestic and international industries. The partnerships of the company with refining and marketing ventures across the globe has enabled it to go across the length of its value chain, from wellhead to the consumers. The separation of its operational decision-making and financial structure from the state intervention is one unique characteristic which might be linked to its sound financial performance and organizational excellence. On the other hand, the delay in its IPO indicates the possible problems that might arise from this influence.

Suggested Citation

  • Jashim Uddin Ahmed & Hafiza Sultana & Md. Muinuddin Khan, 2018. "Saudi Aramco: A Blend between Profit and Politics," FIIB Business Review, , vol. 7(2), pages 88-99, June.
    • Handle: RePEc:sae:fbbsrw:v:7:y:2018:i:2:p:88-99
    DOI: 10.1177/2319714518785324
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    References listed on IDEAS

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