Saudi Aramco stands firmly on the first position amongst the largest companies in Asia. Its market capitalization has recorded USD 1,921 billion[1] keeping approximately the same level as by the end of 2021 when Alpho launched its chart TOP 20 Asian Brands as part of its study Asian Brands of the Twenties.

Other major players from the very top of the chart, with the exception of TSMC, have lost over the last two years substantial part of its value. TSMC (Taiwan Semiconductor Manufacturing Company), on the other hand, increased its reach on the global chips market. The market capitalization of TSMC is currently USD 790 billion [2] thus growing in its value by 38 % since the end of 2021.

Tencent and Samsung, other giants from the very top of Asian Brands of the Twenties, have been losing in the market for various reasons. Chinese companies were generally hit by the condition of the economy while Samsung were weakening in some extremely competitive segments of consumer electronics.

Saudi Aramco (Saudi Arabian Oil Company; TADAWUL:2222) reported in its latest quarterly financials a 14% decline in first-quarter net income to $27.3 billion in the three months to March 31, in line with analyst estimates and down from $31.9 billion a year earlier, according to a company earnings statement.[3]

Saudi Arabian oil giant, controlled by the state, expects to pay $31 billion in dividends to the Saudi government and its shareholders despite reporting lower earnings for the first quarter on Tuesday, hit by lower oil prices and volumes sold.

Saudi Aramco’s value precisely correlates with the oil price. The kingdom, the world’s biggest oil exporter, is spending billions of dollars to diversify its economy away from crude. Aramco itself strengthens in the renewable energy sector. There are also huge expectations of increased efficiency due to digital transformation as there was recently announced a strategic contract with Qualcomm Technologies. Aramco and Qualcomm signed an agreement for the joint contribution to connectivity, artificial intelligence (AI) and advanced computing technologies for industrial use cases in Saudi Arabia.[4]

Alpho, the award winning international broker, has introduced its study Asian Brands of the Twenties as part of its systematic mapping Asia as the new economic superpower of the world. Though Chinese companies are expected again to consolidate their position in 2024, companies from India, which has enormous human potential, may accelerate its dynamics. Other countries in the region, such as Indonesia, Vietnam, Malaysia, Singapore and Thailand, will become increasingly important as well.

Oleh Shalenyk, Analyst of Alpho

[1] As at 17 May 2024: https://companiesmarketcap.com/saudi-aramco/marketcap/

[2] As at 17 May 2024: https://companiesmarketcap.com/tsmc/marketcap/

[3] https://www.hellenicshippingnews.com/saudi-aramco-maintains-31-billion-dividend-despite-lower-q1-net-income/

[4] https://www.rcrwireless.com/20240516/internet-of-things-4/qualcomm-aramco-target-digital-transformation-saudi-arabia