• Saudi Aramco announced a significant reduction in its expected dividend payouts for 2025, projecting total distributions of approximately $85 billion, down from $124 billion in 2024. This decision follows a 12% decline in the company's net profit, which fell to $106.2 billion in 2024 from $121.3 billion in 2023, primarily due to lower oil and gas prices. The reduction in dividends is expected to exert additional pressure on Saudi Arabia's budget deficit, as the government relies heavily on these payouts for funding its economic transformation plans.

• The cut in dividends marks a pivotal shift for Aramco, which has historically been a cornerstone of the Saudi economy and a major source of revenue for the government. The company is now facing increased financial pressures, including a net debt position for the first time, as it balances hefty dividend obligations with substantial investment commitments. Analysts predict that the reduced cash flow may limit Aramco's ability to provide additional performance-linked dividends, further complicating its financial strategy amid fluctuating oil prices.