Aramco, Saudi Arabia state-own oil company, all settle in Formula 1
Formula 1 needs oil companies to survive. This much is obvious, even if some would prefer to ignore the facts. The problem comes when Formula 1 needs the Saudi Arabia government to achieve it.
F1 is one of the most exclusive sports in the world. Becoming an official partner is the dream come true of every company, that of course can afford it. The sport has more than 500 million viewers all over the world, the perfect spot for your company name.
The sport has numerous exclusive official partners, ranging from high-end watch makers, to tech giants to global courier carriers. One, though, is problematic in ways the rest are not.
Aramco, the Saudi state-owned oil and gas company, is responsible for over 4% of the world’s carbon emissions since 1965.
I am not taking issue specifically with oil companies. The problem is when you include a company owned by a very questionable government into the sport. The problem is not the oil company, the problem is that it is owned by Saudi Arabia. A government that is questionable on their Human rights law, in the treatment of women and minorities.
The company name is Saudi Aramco, but when they entered into the Formula 1 deal they did it under Aramco. If it is not a problem, why did they withdraw “Saudi” from the name.
This deal was closed in April 2020, in the main point of the crisis due to Covid-19, the negotiations took 15 months to be closed. Why announce a major partner in the biggest world crisis of the modern era?
It was the perfect timing to close and announce the deal. Formula 1 doesn’t make any move without being perfectly organised. However, they closed the deal and announced it during the crisis, so people won’t be paying as much attention.
The deal came at a time in which the sport was suffering without any kind of income. In which all the sponsors were losing money due to the crisis. As always, oil and Saudi Arabia are the perfect injunction of money with their endless resources.
This was just the first step of the Saudis getting into F1. What followed was bringing the last race of the championship to Jeddah, the capital of Saudi Arabia. The first race took place during the year 2021, becoming the most viewed race of the year in which the championship was decided.
I also remember the particular straight of the circuit, which is the longest and fastest of the championship. More than one driver complained about the lack of security and visibility in fast speed corners.
At the beginning of this season Aramco took a step further. The British team Aston Martin and Aramco closed a “long-term strategic partnership”. The team form this season has changed completely, the name is now Aston Martin Aramco Cognizant.
Now, Aramco has a new opportunity, buying a 10% stake Aston Martin becoming part of the ownership of a F1 team. This would be the ultimate achievement of the Saudi Arabia company.
Saudi Arabia relations with F1 started with a partnership with the sport through Aramco. Now they are a step away from owning part of a team. What is clear is that Saudi Arabia is settled and staying in Formula 1.
