At a time when geopolitical tensions in the region and oil prices brought the energy sector back to the forefront of global investor interest, the world's largest asset managers, BlackRock and Vanguard, continued to increase their exposure to Saudi Aramco's stock during the first half of 2026, with their holdings rising to their highest levels since listing.

Although the escalation of regional tensions and rising oil prices provided a supportive environment for energy stocks, ownership data indicates that the increase in the two funds' investments in Aramco was an extension of a trend that started earlier, and is also consistent with their increased exposure to a number of major global energy companies.

31 million new shares since the beginning of the year

According to Bloomberg data, BlackRock's exposure to Aramco rose from 168.4 million shares at the end of 2025 to 192.2 million shares at the end of the second quarter, an increase of 14.1% equivalent to 23.8 million shares.

Vanguard also raised its exposure from 263.2 million shares to 270.1 million shares, an increase of 3% equivalent to 6.8 million shares.

Thus, the total shares held by the two institutions reached 462.2 million shares, an increase of 30.6 million shares since the end of last year, while the market value of their holdings amounts to about 12.3 billion riyals according to the current price of 26.7 riyals per share.

Asset management giants increase their ownership in Aramco - 02 (1)

Aramco is not the exception

A comparison of purchasing moves in major oil companies indicates that Aramco was not the only destination where the two funds increased their investments during the year.

For example, BlackRock and Vanguard's holdings in BP and Shell shares rose during the first half of 2026, indicating that the two funds continued to increase their exposure to the energy sector globally, albeit with varying purchase rates between companies.

These moves reflect two main factors: the continued inflows related to index-tracking funds, and the improvement in the fundamentals of energy companies supported by rising oil prices.

Wed, 23 2025

Why does Aramco remain different?

Although the increase in exposure included global oil companies, Aramco has additional factors that distinguish it during periods of geopolitical tension.

During the first quarter, the company raised the utilization of the East-West pipeline to its maximum capacity of 7 million barrels per day, along with benefiting from its local and global storage capacity and alternative export routes, which enhanced its ability to maintain supplies even amid navigation disruptions in the Gulf.

The company also confirmed that the events did not have a material impact on its financial position or results until the end of last March.

On the other hand, the picture is not without pressures, as rising oil prices support revenues but may coincide with a decrease in some sales volumes and an increase in shipping costs, which was partly reflected in the first quarter results.

Profits enter a recovery cycle

Revenue rose 8.8% year-on-year to 467.2 billion riyals, while net profit jumped 25.5% to 120.1 billion riyals, recording the first annual growth after 12 consecutive quarters of declining profits.

Analyst estimates according to Bloomberg data indicate a continuation of this improvement in the second quarter, with revenue growth of 12% to 456.1 billion riyals, and profits rising to 116.3 billion riyals.

If the second quarter results come close to expectations, Aramco would have recorded two consecutive quarters of year-on-year profit growth for the first time since the oil upcycle in 2022, which may boost continued institutional investor interest in the stock.

Financial Analysis Unit