Questions have recently multiplied regarding the value of listing Saudi Aramco on global markets, given that it is a market maker and a principal force within the oil market. Questions have also arisen over what international newspapers reported concerning fears of listing on the New York Stock Exchange, NYSE, because of the Justice Against Sponsors of Terrorism Act, JASTA, which was passed by an overwhelming majority in Congress, overriding the veto of former President Barack Obama, who opposed the law because of its impact on sovereign relations between the United States and countries around the world. Those reports pointed to the London Stock Exchange as an alternative to New York. But before addressing the value of such a listing, should there truly be concern over JASTA if Aramco were listed on the NYSE? Or might the listing instead become an opportunity to shield Saudi Arabia from the law?

JASTA — the Justice Against Sponsors of Terrorism Act — allows victims of terrorist attacks in the United States to sue states suspected of supporting those attacks. Accordingly, the entry of those states’ sovereign affairs into court investigations may coincide with the freezing of their balances and assets. Such freezing could disrupt their interests and be used as a political pressure tool against them. Technically, listing Aramco on the NYSE means transferring cash flows from investors in the American market to the Public Investment Fund, which is managed from Riyadh, the Saudi capital. What remains in New York are ownership certificates held by investors, whose value is controlled by the Kingdom from within its own territory. JASTA would affect the Kingdom whether Aramco were listed in New York or London, but only if Aramco held assets in the United States. If Aramco were listed on the NYSE and lawsuits exploiting JASTA were brought against the Kingdom, the first and final parties harmed would be NYSE investors themselves, because they placed their trust in that market and in the companies listed on it. Exploiting this law against Aramco would have a direct negative effect on NYSE indices, which lie at the heart of American investment. There is no doubt that such a development could become the spark of a global economic crisis. As for the Kingdom, it would already have transferred the liquidity obtained from New York investors into its fund in Riyadh. Therefore, listing Aramco in New York may serve as a strong barrier against using JASTA to apply political pressure on Saudi Arabia.

The other questions revolve around the need for a listing if Aramco is already a maker of the oil market and is able to influence prices by reducing production. Yet there is no doubt that such a reduction would be accompanied by a loss of market share in favor of competing producers. Recovering that share would be extremely difficult and would require concessions whose value might exceed the benefit gained from higher prices. To preserve market share, all major producers would need to reduce production together. Will that happen? Certainly not. Aramco is, in this respect, “easy to fail,” and its ability to shape the market has arisen only from the scale of its sales contracts. But if it were listed in New York, then any negative effect on Aramco would directly affect NYSE indices. This would make American politicians stand with Aramco against oil exporters around the world in defense of Aramco’s interests, so that the U.S. economy would not be harmed. At that point, one could say that Aramco becomes “too big to fail,” because of its ability to influence the decisions of its competitors, in addition to the size of the sales contracts it already holds.

How does the factor of risk affect the success of company valuation?

Company valuation requires reading assets and profits alongside governance, risk, and the ability to generate future cash flows. This makes risk an important test that separates temporary treatment from capacity that can endure.

How does the factor of risk affect the success of investment disclosure?

Disclosure builds trust because it reduces uncertainty and makes risk pricing closer to analysis than guesswork. This makes risk an important test that separates temporary treatment from capacity that can endure.

How does Aramco listing and legal-strategic risk affect the Gulf?

Its effect appears in how costs, incentives, and resources are managed, and in the Gulf's ability to turn decisions into sustainable value. The direct context is that listing Aramco on the NYSE could shield Saudi Arabia from JASTA pressure and strengthen Aramco’s strategic market position.

How does the factor of risk affect the success of valuation figures?

A valuation figure compresses many assumptions and is not enough alone; sound judgment reads risk, debt, disclosure, and growth first. This makes risk an important test that separates temporary treatment from capacity that can endure.