Sana'a:A military source has issued a warning to investors in Saudi Arabia regarding what it describes as the "Aramco investment trap," highlighting the ongoing risk posed by the Yemeni Armed Forces to the company's facilities.
According to Yemen News Agency, the source cautioned that the seemingly attractive dividend payouts from Aramco could mislead investors by obscuring underlying risks or creating a false sense of long-term stability.
The warning further noted that a significant portion of Aramco's dividends—97 percent—are notional, as they relate to the Saudi government's own stake and are not distributed to other shareholders. The military source also raised concerns about Aramco's decision to borrow $10 billion, suggesting this move necessitates a thorough reassessment of the company's financial health, especially considering the potential threats to its facilities.
The source urged investors to not let the allure of current dividends overshadow the importance of evaluating the company's ability to generate and maintain profits in the future, emphasizing that a comprehensive assessment of Aramco's financial position is crucial.
