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Saudi Basic Industries Corporation (Arabic: الشركة السعودية للصناعات الأساسية), known as SABIC (Arabic: سابك[a]), is a Saudi chemical manufacturing company. 70% of SABIC's shares are owned by Saudi Aramco.[2][3] It is active in petrochemicals, chemicals, industrial polymers and fertilizers.[4] It is the second largest public company in the Middle East and Saudi Arabia as listed in Tadawul.

Key Information

In 2017, SABIC was ranked fourth in the world among chemical companies by Fortune Global 500.[5] By the end of 2018 SABIC was the world's 281st-largest corporation.[6] In 2014, the company had sales revenues of $50.4 billion, profits of $6.7 billion and assets standing at $90.4 billion.[7] It also has been recognized as the world's second most valuable brand in the chemicals industry by Brand Finance in 2021.[8]

SABIC's former European Head Office in Sittard, the Netherlands

History

[edit]

SABIC was founded in 1976 by royal decree to convert oil by-products into useful chemicals, polymers, and fertilizers.[9] The first chairman of the company was Ghazi Abdul Rahman Al Gosaibi, the Minister of Industry and Electricity, and the first CEO was Abdulaziz bin Abdullah Al Zamil.[9]

SABIC's founding transformed the small fishing villages of Jubail on the Persian Gulf and Yanbu on the Red Sea into modern industrial cities. Production in 1985 was 6.5 million tonnes; five years later production rose to 13 million tonnes and by 2003 production had risen to 42 million tonnes and by 2012 to over 60 million tonnes. SABIC employs more than 40,000 people globally and has 60 manufacturing and compounding plants in over 40 countries.[10]

SABIC's manufacturing network in Saudi Arabia consists of 18 affiliates. Most of these are based in the Al-Jubail Industrial City on the coast of the Persian Gulf. Two are located in Yanbu Industrial City on the Red Sea and one is in the eastern city of Dammam. SABIC also partners in three regional ventures based in Bahrain. SABIC is a market leader in key products such as ethylene, ethylene glycol, methanol, MTBE and polyethylene.[11]

Operations

[edit]

SABIC underwent a business restructuring in October 2015, that saw the absorption of the commodity chemicals produced under the Innovative Plastics SBU into the Chemicals and Polymers SBUs. Along with this, the Specialties SBU was created to house the remainder of the Innovative Plastics products that did not fall under the commodity umbrella and the Innovative Plastics SBU would cease to exist by January 1, 2016.[12] This change follows the reallocation of the Performance Chemicals portfolio into the Chemicals SBU.[13][14]

In July 2002, SABIC commenced operations in Europe after the $2 billion acquisition of the petrochemicals business of Dutch group DSM.[15] SABIC Europe, SABIC's European subsidiary, produces over 2 million tonnes of polymers and over 5 million tonnes of basic chemicals. It employs over 3,000 people and has two major manufacturing locations in Geleen in the Netherlands and Gelsenkirchen in Germany.[11] After forming SABIC Europe, SABIC became the 11th-largest petrochemicals company in the world. The purchase of DSM signified SABIC's intent to expand and become a true global company.

In 2004, the value of SABIC shares, listed on the Saudi Stock Exchange (Tadawul), increased 170% while its net profits increased by 112% from 2003 to 2004.[16]

In 2005, SABIC was the Middle East's largest (in terms of market capitalization) and most profitable publicly listed non-oil company, the world's 11th-largest petrochemical company, ranked 331 on the Fortune Global 500 for 2005, the second-largest producer of ethylene glycol and methanol in the world, the third-largest producer of polyethylene and overall the fourth-largest producer of polypropylene and polyolefin. Standard & Poor's and Fitch Ratings claimed SABIC to be the world's largest producer of polymers and the Persian Gulf region's largest steel producer for 2005; they assigned SABIC an "A" corporate credit rating. That same year, Bloomberg ranked SABIC as the 13th-largest company in the world in terms of market capitalization (at the beginning of 2005 it exceeded ر.س 375 billion, the equivalent of US$100 billion) and the second-largest by market value outside the US and UK.[16]

In June 2006, SABIC established the "SABIC Sukuk Company" to issue Islamic bonds (Sukuk) that are estimated to range between ر.س 1 billion (US$266.67 million) and ر.س 3 billion (US$800 million).

In January 2007, SABIC Europe took over Huntsman Corporation plants in the UK. Headquartered in Sittard, Netherlands, SABIC Europe has a European wide network of sales offices and logistic hubs, as well as three petrochemical production sites in Europe: Geleen (Netherlands), Teesside (United Kingdom), and Gelsenkirchen (Germany).[17]

In 2008, SABIC Europe produced 7.3 million metric tons of petrochemicals, mainly for the European market.

On May 21, 2007, SABIC acquired General Electric's Plastics division, in a US$11.6 billion cash deal, including US$8.7 billion of its liabilities,[18] and launched SABIC Innovative Plastics.[19] In that year, the company ranked 145 (previous rank: 301) in the Forbes Global 2000 list.[20] As of 2014, SABIC Innovative Plastics[21] is a multibillion-dollar company with operations in more than 25 countries and over 9,500 employees worldwide.[17]

In July 2009, SABIC received approval from the Chinese government to build a US$3 billion petrochemical complex in China, in order to gain a foothold in the world's fastest-growing chemicals market.[22]

In January 2018, SABIC announced that it had acquired a 24.99% stake in Clariant, the Swiss specialty chemical manufacturer. The stake was acquired from activist investor White Tale, and at Clariant's prevailing market-capitalisation would have been valued in the region of $2.4bn. The actual transaction price was undisclosed. SABIC CEO Yousef Al-Benyan had previously stated, in November 2017, that the company was looking to spend $3bn-$10bn on acquisitions over the next 10 years.

On March 27, 2019, SABIC announced that state-owned energy company Saudi Aramco signed a share purchase agreement to acquire a 70% majority stake in SABIC from the Public Investment Fund of Saudi Arabia in a private transaction worth $69.1 billion.[23] The transaction was completed in June 2020.[24]

SABIC moved its European headquarters from Sittard to Amsterdam in 2024.[25]

Production and major expansions

[edit]

Expansion operations and investments supposedly amounted to US$20 billion in 2007 and US$70 billion until 2020. The overall total production in 1985 was 6.3 million metric tons; by the end of 2008 it had reached 56 million metric tons. SABIC supposedly can produce over 135 million metric tons per year.[26]

Financial performance

[edit]

Net profits of SABIC in 2008 touched ر.س 22 billion (US$5.86 billion), while total assets stood at ر.س 272 billion (US$72.5 billion) at the end of 2008 and the value of current assets at the end of 2008 stood at ر.س 95 billion (US$25 billion).[27] The Fortune 500 ranking set SABIC revenues as of $40.2 billion.[when?]

SABIC reported preliminary consolidated financial results for the period ended September 30, 2010. Net income for the third quarter of 2010 was ر.س 5.33 billion, compared to net income of ر.س 3.65 billion in the same period the previous year, representing an increase of 46 percent and compared to ر.س 5.02 billion for the previous quarter, a rise of 6 percent.[citation needed]

According to the 2019 Fortune Global 500 list, SABIC reported $45.1 billion in revenues and $5.7 billion in profits for the 2018-2019 FY, ranking it in fourth place among chemical companies and #252 in the list.[28]

Subsidiaries

[edit]

Source:[29]

  • Ibn Sina[30]
  • Saudi-European Petrochemical Company (Ibn Zahr)
  • Saudi Carbon Fiber Company
  • Saudi Petrochemical Company (Sadaf)
  • National Industrial Gases Co (Gas)
  • Petrokemya
  • Kemya
  • Saudi Methanol Co (Ar-Razi)
  • Yanpet
  • Jingga Bin Rasyid Oil Company
  • Arabian Industrial Fibers Company (Ibn Rushd)
  • Sharq
  • SABIC Agri-Nutrients
  • Jubail United Petrochemical Company (United)
  • Yansab
  • Sabtank
  • Saudi Kayan
  • Scientific Design
  • Samac

Products

[edit]

Notes

  1. ^ The official logo displays an alternative calligraphy Arabic: سابكـ which is different from the standard Naskh calligraphy Arabic: سابك.

See also

[edit]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

SABIC

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from Grokipedia
Saudi Basic Industries Corporation (SABIC) is a multinational diversified chemicals company headquartered in , , recognized as one of the world's largest manufacturers. It specializes in producing a wide range of products, including chemicals, commodity and , agri-nutrients, and metals, serving key industries such as automotive, healthcare, , , , consumer goods, and . Founded in 1976 by royal decree to convert by-products into valuable chemicals, SABIC began commercial production in 1981 and has since expanded globally, operating in 43 countries with 60 manufacturing and compounding plants across the , , , and the . SABIC operates as a public joint-stock company, with 70% of its shares owned by Saudi Aramco and the remaining 30% publicly traded on the Saudi Tadawul stock exchange. In 2024, the company reported a production volume of 53.9 million metric tons, total assets of US$74.1 billion, and a net income of US$0.6 billion from continuing operations, underscoring its significant role in the global chemicals sector. With over 28,000 employees worldwide and more than 11,000 patents and pending applications, SABIC emphasizes innovation through a network of technology and innovation centers, launching approximately 95 new products annually. The company also prioritizes sustainability, investing US$4.47 million in social responsibility programs in 2024 while serving customers in over 140 countries.

Overview

Founding and mission

SABIC, or the Saudi Basic Industries Corporation, was established on September 6, 1976, through Royal Decree Number M/66 issued by the Council of Ministers of . The company was founded as a joint-stock entity to spearhead the development of the Kingdom's downstream sector. Its are located in , , serving as the central hub for strategic decision-making and operations. The core mission of SABIC at its inception was to transform waste byproducts—previously flared off as a of oil production—into high-value , chemicals, polymers, and fertilizers. This initiative aimed to diversify Saudi Arabia's economy away from heavy reliance on crude oil exports by building a robust industrial base that leverages abundant domestic resources. By focusing on value-added , SABIC sought to foster sustainable , create jobs, and position the Kingdom as a global leader in the . SABIC's establishment was backed by significant initial investment from Saudi entities, with an authorized capital of SAR 5 billion to fund early and affiliate developments. This government support underscored the strategic importance of the venture in national industrialization efforts, enabling rapid scaling of production capacities in the ensuing years.

Ownership structure

SABIC's ownership structure reflects its status as a key player in Saudi Arabia's industrial sector, with a majority stake controlled by state-linked entities. As of the end of 2024, 70% of SABIC's shares are held by Aramco Chemicals Company, a wholly owned subsidiary of , following Aramco's acquisition in 2020. The remaining 30% are publicly traded on the . The company's leadership is headed by CEO Abdulrahman Al-Fageeh, who was appointed on March 21, 2023, and continues in the role as of 2025. SABIC operates under a one-tier consisting of nine members, the majority of whom are non-executive, including independent directors; the board includes representatives from major shareholders and entities, such as Chairman Al-Dabbagh, a former Saudi minister, and Vice Chairman Dr. Mohammed Yahya Alqahtani. SABIC has been publicly traded on the Tadawul (Saudi Stock Exchange) since 1984, allowing for broader investor participation while maintaining significant state influence through its ownership.

History

Establishment and early development

The Saudi Basic Industries Corporation (SABIC) was established on September 6, 1976, through Royal Decree No. M/66 issued by King Khalid bin Abdulaziz Al Saud, with the primary objective of utilizing associated from oil production to manufacture , fertilizers, and metals, thereby diversifying Saudi Arabia's beyond crude oil exports. The decree created SABIC as a fully owned by the Saudi government, headquartered in , and tasked with building a domestic industrial base to capitalize on the Kingdom's abundant resources amid the of the 1970s. In 1979, SABIC established Hadeed (Saudi Iron and Steel Company) to produce metal products, with production starting in 1982 and marking the company's initial output. Construction of SABIC's initial facilities began in 1977 as part of the development of on the Arabian Gulf, with a focus on establishing core production capabilities. Planning for affiliates like the Arabian Petrochemical Company (Petrokemya) began in the late 1970s, including a facility planned for 240,000 metric tons per annum in partnership with Exxon Chemical. Petrokemya was established in May 1981 as a wholly-owned SABIC affiliate to build plants producing and . SABIC's affiliates began production in the early , with initial exports of products in ; Petrokemya's cracker and related units came online in 1985, establishing the company's base in basic and enabling further exports. However, the brought significant challenges, including sharp price fluctuations triggered by a global glut that saw prices plummet from over $30 per barrel in 1980 to under $10 by 1986, straining Saudi government funding for industrial expansion. Operationally, SABIC faced hurdles in scaling up production, such as training a largely inexperienced local workforce—over 1,000 employees were sent abroad for specialized training—and navigating a worldwide market slump that tested the viability of its nascent facilities. Despite these obstacles, SABIC's access to low-cost feedstocks provided a , allowing it to solidify its position in and production by the end of the decade.

Key acquisitions and growth

During the 1990s, SABIC focused on and strategic expansions to bolster its capabilities, particularly in industrial hubs like and . The company established key affiliates and s, such as the formation of the National Chemical Carriers (NCC) in 1990 to support logistics, and the listing of four affiliates on the Saudi stock exchange in 1992, marking a milestone for regional capital markets. In 1997, SABIC partnered with Chevron to form a in for production, later becoming the Saudi Chevron Phillips Company (SCP) following Chevron's 2000 merger with Phillips, with operations starting in 2000; expansions at facilities increased output of and related derivatives, contributing to SABIC's emergence as the Middle East's largest by 1996. A pivotal milestone came in 2007 when SABIC acquired GE Plastics from General Electric for $11.6 billion, one of the largest deals in the petrochemical sector at the time. This acquisition integrated advanced engineering plastics and specialty materials into SABIC's portfolio, significantly expanding its global footprint in high-performance polymers. The acquired business was rebranded as SABIC Innovative Plastics, enabling SABIC to leverage GE's established customer base in automotive, electronics, and consumer goods industries. Entering the , SABIC continued its evolution through internal restructuring to sharpen focus on core competencies. In the fourth quarter of 2020, the company reorganized its operations into three distinct units: , Specialties, and Agri-Nutrients, as part of a broader transformation program aimed at enhancing and market responsiveness in a volatile global landscape. This shift separated commodity chemicals from higher-value specialties and fertilizers, allowing targeted investments and operational efficiencies across segments. In recent years, SABIC has accelerated expansions amid strategic investments. The company announced a $4 billion capital expenditure plan for 2025 (in the range of $3.5-4 billion) to support selective growth projects, emphasizing and value creation despite market challenges. Key developments include the startup of an upgraded methyl tertiary-butyl ether (MTBE) at its Petrokemya affiliate in on November 3, 2025, boosting production capacity ahead of schedule to 1 million tonnes per year. Additionally, the Fujian petrochemical complex in with reached 87% completion of work as of November 2025, with full operations targeted for the third quarter of 2026 to produce and downstream products for the Asian market.

Operations

Global footprint

SABIC's global footprint underscores its position as a leading diversified chemical manufacturer, with operations extending across 43 countries as of 2024. This extensive network enables the company to serve diverse markets efficiently, leveraging regional expertise to address local customer needs while maintaining a centralized strategy from its headquarters. The organization's international presence is supported by a of over 28,000 employees distributed worldwide, fostering and operational resilience in a competitive industry. Key geographic hubs anchor SABIC's activities in major regions. In the , the core operations remain in , including major industrial cities like Al-Jubail and . hosts significant facilities in the and the , focusing on advanced manufacturing and research. In the Americas, the serves as a primary base, complemented by activities in , , and . Asia features robust hubs in and , alongside other locations like , to capitalize on high-growth markets and dynamics. This distribution allows SABIC to optimize and respond to regional demands in and specialties. To facilitate its worldwide reach, SABIC operates a network of sales offices and distribution centers globally, including over 40 offices in , ensuring timely access to its product portfolio for customers in over 140 countries. These facilities enhance and support sustainable supply chains. In , SABIC solidified its stature as the world's fifth-largest by sales, with revenues reflecting its scale and diversification amid global economic shifts.

Manufacturing facilities

SABIC's manufacturing operations are centered in the industrial cities of and in , which host the majority of its production facilities and underpin the company's total annual production volume of 53.9 million metric tons in 2024. These sites feature highly integrated complexes that optimize resource use, including shared utilities for power generation and consumption, enhancing overall operational efficiency. Key facilities in Jubail include the Petrokemya complex, which produces ethylene, polyethylene, and other petrochemicals, while Yanbu hosts operations like those of Yanpet for ethylene and polyethylene glycol. The integrated design of these Saudi Arabian sites allows for streamlined production processes, reducing energy intensity and supporting large-scale output across multiple product lines. Internationally, SABIC maintains significant manufacturing presence in Europe and the Americas, with major sites at Geleen and Bergen op Zoom in the Netherlands, focusing on specialty chemicals and polymers, and at Mount Vernon, Indiana, in the United States. The Mount Vernon facility, established in 1960, stands as SABIC's largest in North America, producing polycarbonate resins and serving as a hub for technological advancements. To bolster its global manufacturing capabilities, SABIC operates technology and innovation centers in five countries, including the , the , the , , and , where research supports process improvements and new material development for production sites. In line with capacity expansion efforts, SABIC commissioned a new methyl tert-butyl ether (MTBE) plant at its Petrokemya facility in in late 2025, which started up in November 2025, featuring a single-train capacity of 1 million metric tons per year and replacing an older unit to enhance output efficiency. This addition strengthens SABIC's position in oxygenate production while integrating with existing infrastructure for optimized operations.

Products and technologies

Core product lines

SABIC's core product lines are divided into key business units, encompassing and their derivatives across chemicals, polymers, agri-nutrients, and specialties, supporting industries from to . These products leverage integrated to deliver high-volume, high-quality materials essential for global supply chains. In the Chemicals business unit, SABIC produces fundamental such as , , and aromatics. serves as a primary feedstock for , glycols, and synthetic rubbers, with SABIC maintaining substantial production capacity across its global facilities. is utilized in the manufacture of and other derivatives like and propylene glycols. Aromatics, including , , and xylenes, provide intermediates for styrene, BPA, and other chemicals used in and resins. Additionally, the unit includes oxygenates like , a versatile solvent and raw material for and acetic , produced at sites with a focus on low-carbon variants. The Polymers business unit offers a broad range of thermoplastics, including polyethylene (PE) and polypropylene (PP). Polyethylene variants—such as high-density PE (HDPE) for rigid packaging and pipes, low-density PE (LDPE) for films, and linear low-density PE (LLDPE) including metallocene grades for flexible applications—cater to diverse needs in construction, consumer goods, and agriculture. Polypropylene, available in homo, random, and impact grades as well as compounds, supports automotive components, textiles, and rigid packaging with enhanced strength and processability. This portfolio was significantly expanded through SABIC's 2007 acquisition of GE Plastics for $11.6 billion, which integrated engineering plastics like polycarbonate (LEXAN™), ABS (CYCOLAC™), and PBT (VALOX™) for demanding applications in electronics, automotive, and medical devices. Through its Agri-Nutrients unit, SABIC supplies essential fertilizers including , , and related nitrogen-based products to enhance global food production. , the most widely used , is produced in granular form for efficient crop nutrition. acts as a key for and other fertilizers, with SABIC advancing low-carbon production methods to reduce emissions. The Specialties business unit develops advanced materials tailored for high-performance sectors like automotive, healthcare, and packaging. These include high-heat resins such as ULTEM™ polyetherimide (PEI) for lightweight components and devices requiring sterilization resistance, and ™ polyphenylene ether (PPE) blends for water management and . In packaging, SABIC offers compounds and additives for sustainable solutions, exemplified by circular plastics initiatives under the TRUCIRCLE™ portfolio, which incorporate recycled and low-carbon content and were showcased at K 2025 to demonstrate applications in everyday products.

Innovation and R&D

SABIC invests significantly in to drive technological advancements in the . As of 2024, the company employs over 2,000 full-time researchers across its global network, focusing on sustainable solutions, process innovations, and customer-specific applications. This workforce supports more than 600 active R&D projects spanning short-, medium-, and long-term horizons. SABIC's patent portfolio, which includes contributions from affiliates, exceeded 11,000 granted patents and pending applications by the end of 2024, with over 220 new priority filings that year alone, underscoring its commitment to in areas like and technologies. The company's R&D infrastructure centers on the SABIC Technology and Innovation Center in , , which serves as a hub for application development and technical services, complemented by 19 additional global technology and innovation centers. These facilities are strategically located across key regions, including , , and the , to foster localized innovation and collaboration with regional industries. For instance, centers in the and specialize in advanced polymer processing, while those in and emphasize and automotive applications. SABIC's innovations emphasize sustainable materials, including the development of bio-based plastics derived from certified second- and third-generation feedstocks, which reduce reliance on fossil resources. The company has pioneered advanced composites, such as UDMAX™ thermoplastic tapes, enabling lightweight, high-strength components for automotive and aerospace sectors through automated manufacturing processes. Central to these efforts is the TRUCIRCLE™ program, launched to promote a circular plastics economy by integrating mechanically recycled content and advanced recycling technologies, with a goal to process at least one million metric tons of such materials annually by 2030. To accelerate progress, SABIC engages in extensive partnerships with over 40 universities worldwide, including King Abdullah University of Science and Technology (KAUST), MIT, and the , for joint research on sustainable technologies like carbon capture and bio-renewables. Industry collaborations, such as with on developing products using recycled ocean plastics and with Apple on using in , further enhance these initiatives by combining SABIC's chemical expertise with external technological capabilities. These alliances have yielded breakthroughs in low-carbon processes and recyclable formulations, aligning R&D with global standards.

Subsidiaries and affiliates

Wholly-owned subsidiaries

SABIC maintains several wholly-owned subsidiaries that play pivotal roles in its global operations, spanning product innovation, regional management, and specialized manufacturing. These entities enable SABIC to execute its strategies in key sectors such as engineering plastics, fertilizers, and international expansion, ensuring full control over critical assets and decision-making. SABIC International Holdings B.V. and its subsidiaries, fully owned and based in the , oversee global operations, including technology and manufacturing affiliates. It integrates legacy assets from past acquisitions, such as the former GE Plastics business, focusing on advanced polymers like ULTEM™ resins and LNP™ compounds for applications in automotive, healthcare, , and sustainable solutions. The entity supports innovation through technology centers worldwide and bio-renewable developments. SABIC Europe B.V., headquartered in , , oversees SABIC's European operations, managing manufacturing sites, technology centers, and projects across the region. It coordinates production in facilities like and , where initiatives include cracker decoupling, advanced recycling with hydrotreater units, and integration, such as 239 MW and the world's largest circular solar installation at , , in 2024. The subsidiary enhances SABIC's European footprint by reducing CO₂ emissions through over 660 MW of renewable capacity, supporting operational excellence in polymers and chemicals. SABIC Americas, Inc., based in Houston, Texas, directs SABIC's activities in North and South America, handling sales, distribution, and manufacturing from 17 sites across the United States, Canada, Mexico, Brazil, and Argentina. It supports specialties like bio-renewable polycarbonate production at Mount Vernon, Indiana, and hosts innovation zones such as BLUEHERO™ in Michigan for electric vehicle solutions. With approximately 3,800 employees, the subsidiary strengthens regional supply chains and collaborates on projects like the Gulf Coast Growth Ventures ethane cracker, contributing to SABIC's growth in the Americas market. SABIC Asia Pacific Pte Ltd, located in , manages SABIC's expansive operations in the region, including manufacturing and sales in , , , and . It drives localized production of (HDPE) and (PP) resins, while advancing sustainability through solar installations at sites like Nansha and , generating hundreds of thousands of kWh annually. The subsidiary facilitates market proximity for end-use applications in electric vehicles and infrastructure, bolstering SABIC's competitive position in one of its fastest-growing regions.

Joint ventures and partnerships

SABIC engages in numerous joint ventures and strategic partnerships to expand its production capacity and access new markets, leveraging shared expertise and resources with global industry leaders. These collaborations often focus on olefins, polymers, and specialty chemicals, enabling SABIC to diversify its portfolio while mitigating risks through co-investment. (SABIC AN), in which SABIC holds a 50.1% majority stake, produces essential fertilizers including and to support global and . Launched on January 1, 2022, it consolidates SABIC's agri-nutrients assets, emphasizing sustainable practices such as low-carbon , with plans for a new 1.2 million tons per annum plant in , . As a key revenue contributor in , the company operates major facilities in and , producing over 8 million tons annually and advancing goals through efficient resource use and environmental stewardship. Yansab, or the National , represents a significant where SABIC holds a 52.08% stake, focusing on olefins production in , . This partnership produces , , and , contributing to SABIC's domestic for basic . Saudi Kayan Petrochemical Company is another important affiliate, with SABIC maintaining a 35% interest in this Jubail-based entity dedicated to manufacturing. The venture produces a range of polymers and chemicals, including and , supporting SABIC's expansion in value-added products. SABIC has longstanding partnerships with , including the 50-50 joint ventures Kemya in and Yanpet in , both in , which produce , , and elastomers. More recently, the Gulf Coast Growth Ventures (GCGV) in , a 50-50 , commenced operations in , featuring a world-scale cracker and derivatives units to serve North American markets. In collaboration with TotalEnergies, SABIC co-owns a 50% stake in the Carville facility in Louisiana, United States, which manufactures styrene monomer and polystyrene, enhancing SABIC's position in the Americas' specialty chemicals sector. Additionally, SABIC participates in sustainability-focused alliances, such as the 2023 initiative with TotalEnergies and Aramco to process plastic waste-derived oil into certified circular polymers, marking a regional first in advanced recycling. SABIC's expansion in includes the SABIC Fujian Petrochemicals Co., Ltd., where it holds a 51% stake in partnership with Fujian Fuhua Gulei Petrochemical, developing a $6.4 billion complex for and derivatives production. This project, which broke ground in 2024, reached 87% completion in phases as of 2025, underscoring SABIC's commitment to Asian growth through international joint ventures.

Financial performance

SABIC, established in 1976 by royal decree in Saudi Arabia, began operations with a focus on converting natural gas byproducts into chemicals, marking the start of its financial trajectory. Initial investments supported the construction of manufacturing facilities, with production commencing in 1981. By the mid-1980s, the company had achieved modest revenues as its affiliates ramped up output; for instance, production reached 6.5 million tonnes in 1985, supporting early sales in petrochemicals and fertilizers. Revenues during this period were in the low billions of Saudi riyals (SAR), reflecting the foundational phase of asset buildup and operational scaling. The 1990s saw steady revenue growth driven by expanded capacity and market penetration, with sales exceeding SAR 19 billion (approximately $5.1 billion) by 1996, positioning SABIC as the Middle East's largest joint stock company at the time. By 2002, revenues had risen to $9.04 billion, bolstered by increasing global demand for basic chemicals. The 2000s marked a boom period fueled by strategic acquisitions, including the $11.6 billion purchase of GE Plastics in 2007, which enhanced SABIC's downstream portfolio and international presence. This expansion contributed to peak performance, with 2007 net profits reaching SAR 27 billion and first-half 2008 revenues surging 54% year-over-year to SAR 83 billion. However, the 2008 global financial crisis led to a sharp downturn, with net profits falling to SAR 22 billion in 2008 from the prior year's high, and revenues dipping to approximately $25 billion in 2009 amid reduced demand and lower prices. Recovery followed, with revenues climbing to around $35 billion by 2010 as markets stabilized. Profitability remained robust throughout these decades, with SABIC maintaining consistent dividend payouts to shareholders, reflecting strong cash flows from core operations. The company achieved a net profit peak of SAR 21.54 billion (about $5.74 billion) in 2018, driven by higher selling prices and sales volumes reaching SAR 169.09 billion. Asset growth paralleled this expansion, evolving from initial investments in the late —estimated at around SAR 3.7 billion in early capital—to total assets of SAR 310.37 billion (approximately $82.8 billion) by 2019, underscoring decades of development and global diversification.

Recent results (2020-2025)

The COVID-19 pandemic significantly impacted SABIC's performance in 2020, leading to a 14% decline in revenue to SAR 116.95 billion (approximately US$31.2 billion), primarily due to sharply lower average sales prices across key products despite a 1% increase in sales volumes. Net income fell to SAR 67 million, reflecting reduced margins from global demand disruptions in petrochemicals and related sectors. Recovery began in 2021 amid rebounding global demand, with revenue rising 50% to SAR 174.88 billion and net income surging to SAR 23.07 billion, driven by higher selling prices and volumes in petrochemicals and specialties. This momentum continued into 2022, as revenue grew another 13% to SAR 198.47 billion, though net income moderated to SAR 16.53 billion due to softening margins from elevated feedstock costs and market volatility. By 2023, however, macroeconomic headwinds and oversupply pressures reversed gains, causing revenue to drop 23% to SAR 141.54 billion and resulting in a net loss of SAR 2.77 billion, which included one-time provisions of SAR 4.08 billion related to the sale of assets; net income from continuing operations was SAR 1.30 billion. In 2024, SABIC achieved a modest recovery, posting full-year revenue of SAR 139.98 billion and of SAR 1.54 billion (US$0.41 billion) from continuing operations, supported by cost discipline and selective volume growth amid stabilizing petrochemical demand. Total assets stood at SAR 278 billion (US$74.1 billion), reflecting a solid despite ongoing market challenges. Production volume reached 53.9 million metric tons, underscoring operational resilience in core segments like and agri-nutrients. Through the first three quarters of 2025, SABIC faced persistent pressures from global economic slowdowns and oversupply, recording a net loss of SAR 1.2 billion in Q1, attributed to costs and weak margins. Revenue in Q3 totaled SAR 34.3 billion (US$9.15 billion), marking a 3% sequential decline from Q2's SAR 35.6 billion, though net adjusted income improved 45% to SAR 698 million from Q2's SAR 484 million, aided by efficiency gains and lower input costs. Despite these quarterly losses, SABIC maintained its commitment to growth, planning capital investments of US$3.5-4 billion for 2025 to advance projects like the complex and capacity expansions.

Sustainability efforts

Environmental initiatives

SABIC has committed to achieving carbon neutrality in its operations by 2050, aligned with the and Saudi Arabia's Vision 2030, through a multifaceted roadmap that includes energy efficiency improvements, integration, and carbon capture, utilization, and storage (CCUS) technologies. To support this ambition, the company targets a 20% reduction in absolute Scope 1 and 2 greenhouse gas emissions by 2030 from a 2018 baseline, having already achieved a 22.7% reduction in GHG intensity since 2010. Regarding Scope 3 emissions, third-party analysis projects that upstream activities will account for 42.9% of SABIC's total emissions by 2030, underscoring the need for collaborations to address indirect impacts. A key pillar of SABIC's environmental involves transitioning to sources, with goals to secure 4 GW of installed renewable capacity by 2025 and scale up to 12 GW by 2030, primarily in , to lower Scope 2 emissions and enhance . As of 2024, progress includes the of projects like a 2 MW circular solar installation, though full achievement of the 2025 target remains ongoing. This initiative builds on existing efforts, such as its Cartagena facility operating on 100% renewable power since 2024, and integrates solar and projects to decarbonize processes. Complementing these efforts, SABIC is investing in eight mega projects totaling $2.7 billion to optimize and feedstock utilization, focusing on efficiency enhancements across its facilities to reduce overall and emissions. In advancing a , SABIC's TRUCIRCLE™ portfolio and services promote the use of recycled and renewable plastics, targeting the processing of at least 1 million metric tons of such materials annually by 2030 to minimize and virgin resource dependency. This includes mechanically recycled products, certified circular polymers from , and bio-based feedstocks derived from second-generation sources like , which do not compete with food production and can reduce CO2 emissions by up to 4 kg per kg of material compared to fossil-based alternatives. SABIC is also developing bio-based copolymers with 50% bio-content, maintaining high performance while lowering the of applications in and automotive sectors. These initiatives emphasize designing for recyclability and partnering across the value chain to scale sustainable feedstock adoption.

Social responsibility

SABIC employs over 28,000 people globally, with a strong emphasis on diversity and inclusion to foster innovation and talent development. The company has set targets to enhance balance, achieving 9% representation in its as of 2024, supported by programs like EXSABIC under the NUSANED™ initiative, which trains women for roles in the industrial sector. In alignment with Saudi Arabia's goals, SABIC advances local development through NUSANED™, an integrated program launched in 2018 that creates jobs, builds skills, and supports economic diversification by engaging public and private sectors. Employees receive an average of 58 training hours per year, emphasizing and technical capabilities to promote internal mobility and long-term growth. SABIC engages communities through targeted and initiatives, particularly in , while promoting global to address societal needs. In , the company supports programs like the Global Initiative for Education and Innovation, partnering with and INJAZ to reach over 15,000 youth annually with workforce readiness training, involving more than 700 employee volunteers worldwide. Health efforts include the Global Health Initiative, which funds wellness programs and responses to community challenges, such as supporting over 212 health-related projects in 2020. Through its Global Social Initiative, SABIC facilitates volunteerism and partnerships with NGOs, enabling over 3,600 employees to contribute to programs across 27 countries, including back-to-school support for underprivileged children and care activities. SABIC upholds rigorous ethical standards, integrating measures and responsibility into its operations as a signatory to the since 2012. The SABIC Code of Ethics, applicable to all employees and directors, prohibits , , and conflicts of interest, with mandatory training and a confidential reporting hotline to ensure compliance. In , SABIC communicates expectations to suppliers via policies aligned with UN Global Compact principles on , labor, and , conducting to mitigate risks like forced labor and environmental violations. These practices extend to SME empowerment through NUSANED™, which provides industrial consulting, organizational support, and to local businesses, contributing to broader economic inclusion.

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