RIYADH: Energy giant Saudi Aramco reported a stronger-than-expected first-quarter net profit of SR97.54 billion ($26 billion), highlighting resilience amid weaker oil prices and reinforcing its focus on efficiency and diversified strategic growth. 

The net income marked a 16.42 percent increase in the first three months of 2025 from $22.34 billion in the previous quarter, although it was down from $27.27 billion a year earlier. The company’s overall revenue in the first quarter stood at SR405.65 billion, marking a 3.23 percent quarter-on-quarter increase. 

The oil giant cited disciplined capital spending, robust operations, and continued downstream expansion as key drivers of its performance. 

In a statement, Amin H. Nasser, CEO of Saudi Aramco, said: “Global trade dynamics affected energy markets in the first quarter of 2025, with economic uncertainty impacting oil prices.”  

He added: “In this context, Aramco’s robust financial performance once again demonstrated the company’s unique scale, its reliability and flexibility, the value of its low-cost operations, and its emphasis on efficiency and advanced technology.”  

The company’s operating cash flow reached $31.7 billion, down from $33.6 billion in the first quarter of 2024, while free cash flow stood at $19.2 billion.  

Aramco’s capital expenditures rose to $12.5 billion as the company continued to invest in long-term strategic projects, including lower-carbon initiatives. 

Nasser said Aramco will continue working to meet global energy demand by advancing growth across its upstream, downstream and new energy segments, while also focusing on reducing emissions. 

“Our ambition is reflected in milestones already announced in 2025, including progress toward our gas production growth target, our global retail expansion, the advancement of our petrochemicals strategy, headway in blue hydrogen business development, and further innovation in carbon capture,” he added.  

Aramco’s board declared a base dividend of $21.1 billion for the first quarter, up 4.2 percent from the same period a year earlier. It also announced a performance-linked dividend of $219 million, to be paid in the second quarter. 

“In volatile times, Aramco’s resilience underpins both our financial performance and our sustainable and progressive base dividend,” added Nasser.  

Aramco also highlighted progress on several fronts in line with its long-term diversification strategy. The company finalized the acquisition of a 50 percent stake in Blue Hydrogen Industrial Gases Co. and signed definitive agreements to acquire a 25 percent interest in Unioil Petroleum Philippines, strengthening its position in blue hydrogen and downstream retail, respectively. 

In addition, Aramco launched a pilot facility for direct air capture of CO2, a move aimed at scaling up its carbon capture technology and supporting the Kingdom’s emissions-reduction goals.

JEDDAH: The King Abdullah Financial District is fast emerging as a centerpiece of Saudi Arabia’s economic transformation, playing a critical role in the Kingdom’s efforts to diversify and establish itself as a global hub for commerce and investment.

Located in the capital, Riyadh, KAFD is more than just a collection of striking buildings, it is a thriving financial ecosystem. 

As the base for the Saudi Stock Exchange, global investment firms, regulatory bodies, and fintech companies, the district is helping to reshape the financial landscape of the region.

KAFD aligns closely with the goals of Vision 2030, Saudi Arabia’s strategic framework for economic diversification. It supports growth in capital markets, attracts foreign direct investment, and fosters innovation in financial technologies, according to industry experts.

The scale of the development reflects its ambition. Spanning 3.2 million sq. meters of gross floor area over a 1.6 million sq. meter site, the district includes over 2,900 residential units and more than 6,100 hotel keys and serviced apartments. It also boasts Riyadh’s tallest tower — an 80-story skyscraper reaching 385 meters — and is the largest project in the world to receive the Leadership in Energy and Environmental Design ND Stage 2 Platinum certification.

KAFD’s design is the work of over 25 leading architectural and design firms, including Foster + Partners, Henning Larsen, and Gensler. Its five main asset classes — office, residential, hospitality, retail, and entertainment — combine to offer a modern, integrated environment for business and living.

Mansoor Ahmed, an independent adviser with over 25 years of regional experience in real estate and infrastructure, told Arab News that KAFD is the center of Saudi Arabia’s financial sector, attracting top institutions, asset managers, and fintech firms.

“KAFD encourages international financial firms and investors to establish operations in Riyadh, enhancing foreign capital inflows. For example, Goldman Sachs, a leading global investment bank, announced plans to open a new office in KAFD,” Ahmed said.

He added that Tadawul is expanding rapidly, and KAFD plays a key role in supporting market growth, driving liquidity, and diversifying financial products.

“Tadawul Tower, located within KAFD, serves as the headquarters of the Saudi Stock Exchange. Its presence in the district has contributed to attracting investors and businesses, thereby boosting the region’s economic growth,” he said.

More than buildings

Commenting on how KAFD is enhancing Saudi Arabia’s competitiveness as a global financial center, Tamer Al-Sayed, chief financial officer at the FII Institute, told Arab News that the district is more than just a striking skyline — it’s a statement.

“It signals Saudi Arabia’s commitment to becoming a major financial hub, offering a world-class ecosystem designed to attract global institutions, investors, and talent. What makes it competitive is its mix of cutting-edge infrastructure, financial incentives, and integration with Vision 2030’s broader economic reforms,” Al-Sayed said.

He added that, unlike traditional financial centers, KAFD is being developed in tandem with regulatory transformation. 

The King Abdullah Financial District serves as a launchpad for fintech startups, digital banking solutions, and venture capital firms.

Mansoor Ahmed, real estate adviser

“With initiatives like the Financial Sector Development Program, fintech expansion, and capital market liberalization, Saudi Arabia is reshaping its financial landscape,” the CFO said.

He emphasized that KAFD represents these reforms in physical form, hosting key regulatory bodies, financial institutions, and technology-driven firms that will lead future economic growth.

Ahmed explained that KAFD is enhancing private sector participation and foreign direct investment by enabling financial firms to offer more sophisticated investment products, which contributes to diversifying Saudi Arabia’s economy beyond oil.

He highlighted that in 2024 KAFD planned to consolidate some of its income-generating properties into a real estate investment fund and list it on Tadawul, aiming to raise around $700 million.

“This initiative not only funds additional development projects within KAFD but also revitalizes the Saudi REIT sector for investors,” Ahmed said.

The district stands as a tangible expression of Vision 2030, demonstrating the impact of public-private partnerships in advancing Saudi Arabia’s shift toward a knowledge-based economy.

Ahmed emphasized that KAFD directly supports this initiative by working to build a more resilient and diversified financial sector.

“KAFD has been pivotal in advancing Saudi Arabia’s fintech landscape. The district’s infrastructure and strategic initiatives have contributed to the growth of fintech companies, aligning with the FSDP’s goal to foster innovation and competition in the financial sector,” he said.

Ahmed further added that KAFD fosters entrepreneurship and fintech growth by hosting innovation-driven financial firms. “KAFD serves as a launchpad for fintech startups, digital banking solutions, and venture capital firms. The Ministry of Investment and KAFD have entered into an agreement to accelerate investment and entrepreneurship within the district,” he said.

In terms of job creation and talent development, he said the district acts as a catalyst for employment across finance, technology, and professional services, attracting both local and international talent.

“KAFD is expected to accommodate around 50,000 residents upon completion and provide employment opportunities for approximately 43,000 workers, significantly contributing to job creation in line with Vision 2030’s goals,” Ahmed said.

Beyond its economic role, the district has significantly boosted Riyadh’s appeal as a business and tourism destination, helping the city’s hospitality
sector thrive.

Ahmed pointed out that KAFD sets new benchmarks for commercial real estate in Riyadh by offering Grade A office spaces that cater to global demand for smart, sustainable buildings.

“KAFD is integrating various smart city solutions to create a sustainable and efficient urban environment, including smart traffic management and mobility solutions, enhancing the appeal of its commercial real estate offerings,” he said, adding that KAFD also plays a strategic role in the Kingdom’s meetings, incentives, conferences, and exhibitions sector, positioning Riyadh as a regional business tourism hub.

“KAFD’s integration of luxury residences, exclusive retail, hospitality offerings, and diverse entertainment and recreational experiences within a compact, pedestrian-friendly urban ecosystem makes it an attractive destination for business events and tourism,” the independent adviser said.

New York, London, Riyadh?

The FII Institute’s Al-Sayed outlined the key factors that will determine whether KAFD can rival the world’s top financial hubs such as New York, London, and Singapore. He stressed that such centers evolve through a combination of regulation, infrastructure, talent, and trust.

“KAFD has the foundation, but to compete with London, New York, and Dubai, it needs three critical factors. First, regulatory competitiveness as a business-friendly regulatory environment is key. The ability to offer tax incentives, ease of doing business, and a seamless legal framework will define how attractive it becomes to global players,” he said. 

What makes it competitive is its mix of cutting-edge infrastructure, financial incentives, and integration with Vision 2030’s broader economic reforms.

Tamer Al-Sayed, chief financial officer at the FII Institute

The second factor, he added, is liquidity and market depth. “Financial hubs thrive on deep, liquid markets. Expanding the Saudi stock market, facilitating foreign capital flows, and enhancing financial product diversity are essential.”

Al-Sayed identified talent and global connectivity as the third pillar. He noted that attracting top global talent and building strong international links will be decisive.

“Attracting international finance professionals while developing local talent through education and experience will be a game-changer. Additionally, enhancing global connectivity through strategic partnerships with other financial centers will solidify its position,” Al-Sayed said.

He pointed out that, just as Dubai succeeded by positioning itself as the financial gateway to the Middle East, KAFD has the potential to go even further by leveraging Saudi Arabia’s scale, resources, and long-term vision.

On foreign investment, Al-Sayed said KAFD is instrumental in shaping Saudi Arabia’s appeal to international investors.

“Traditionally, investors look for stability, accessibility, and a supportive ecosystem. KAFD provides this in a way that aligns with Vision 2030’s broader goals— diversification, digital transformation, and private-sector growth,”the CFO said.

He added that confidence in the Saudi market is key to attracting FDI.

“When global banks, asset managers, and venture capital firms establish regional headquarters at KAFD, this sends a strong signal that Saudi Arabia is open for business, not just as an oil powerhouse but as a financial and economic force,” he said.

Al-Sayed concluded that KAFD is not merely a financial center but a modern, integrated economic ecosystem.

“KAFD’s success will not be measured by the height of its towers but by the impact it has on global capital flows, business confidence, and economic diversification. The challenge is not just in building world-class infrastructure but in fostering a financial culture that can compete on a global scale,” he said.