Saudi Arabia’s state oil company slashes dividend amid declining profits

Saudi Arabia’s state oil giant reported a decline in profit and slashed its dividend, hitting a key source of income for the kingdom as it looks to diversify its economy.

Aramco was hampered by lower-than-expected oil prices, a factor that is likely to persist after the OPEC+ producers’ cartel said it would soon expand output.

The figures are a blow for Riyadh, which has relied on fossil fuels to drive a revamping of its economy, and ultimately reduce its reliance on oil.

New figures showed the country’s non-oil sector is expanding faster than the overall economy, but critics warn that the kingdom’s push remains highly dependent on its sovereign wealth fund — whose coffers are filled by Aramco dividends.