Racing Into The Future: Formula 1 & Saudi Aramco team up for first time

Saudi Arabia's oil giant Aramco signed a major global sponsorship deal with Formula 1 on Tuesday. 

This is considered the state-owned company's first deal of the sort. The firm's officials said they selected Formula 1 to be their first global sponsorship platform "in recognition of the sport's dynamic appeal and growing global fan base." 

The deal between the two entities includes trackside branding for Aramco at most races and rights to the titles of the U.S., Spanish, and Hungarian Grands Prix in 2020.

The oil company is now Formula 1's sixth global partner and joins the ranks of other sponsors including DHL, Emirates, Heineken, Pirelli, and Rolex. 

In statements on the new deal, both Formula 1 and Saudi Aramco said they will work towards sharing expertise to help advance innovations and enhance sustainable fuels and engine efficiencies in addition to delving into emerging mobility technology. 

"We are looking forward to sharing our combined expertise and working with Aramco on technological innovation and we will benefit hugely from its capabilities and expertise in the fuel and energy sector," Chairman and CEO of Formula 1, Chase Carey, said in his comment on the matter. 

Saudi Aramco president and CEO Amin H. Nasser also expressed excitement over the sponsorship deal, saying: 

"As the world's largest energy supplier and an innovation leader, we have the ambition to find game-changing solutions for better-performing engines and cleaner energy. Partnerships like these are important to help us to deliver on our ambitions."

Saudi Aramco is the largest company in the world and was listed in a record-breaking initial public offering (IPO) back in December. 

In 2018, the firm was named the most profitable in the world, raking in a whopping $111 billion net profit. The company made more money than four corporate giants combined. These include J.P. Morgan Chase, Google-parent Alphabet, Facebook, and Exxon Mobil. Together, these companies made nearly $106 billion in 2018.

The past two years have been more difficult for the firm, though, as oil prices continue to drop on a global level whether it's because of the novel coronavirus (COVID-19) outbreak or the oil-price war launched between the kingdom and Russia recently. 

Sponsorships like the one now signed with Formula 1 will bolster the company's image as it withers losses and continues to battle hurdles related to the recent outbreak of COVID-19.