Global demand and expansion in foreign markets: Saudi Basic Industries Corporation (SABIC) is an industrial giant in the global economy and one of the world’s largest petrochemicals producers. It is the largest non-oil industrial company in the Middle East, and manufactures plastic products and other industrial products – even giant water pipes. For the global economy, SABIC may be the radical solution to economic growth, which needs petrochemicals to meet the growing demand for industrialization. This is especially in light of the desire for continuous industrial advancement to compensate for any losses or shortages of oil products.
The company is currently expanding its operations in the international markets through partnership agreements with international petrochemical companies, and has begun operations in the United States and Japan. The company’s strategy is to diversify its business into new global markets in order to achieve competitive market prices.
The market value of the shares and the commitment to dividend distribution: The profits distributed by SABIC to its shareholders of the highest profits in the Saudi market is 2.2 riyals per share, and the company has achieved steady growth in sales for nearly five years. SABIC’s market capitalization reached 42.75 billion riyals ($11.4 billion) in 2018. The company’s board of directors recommended distributing cash dividends for the second half of 2018 at a total value of SR 6.6 billion. The distribution will be 2.2 riyals – 22% of the nominal value of the share, and the total number of shares due to the distribution to 3 billion shares. SABIC posted a net profit of SR18.3 billion for the first nine months of 2018, compared to a net profit of SAR14.7 billion in the corresponding period of 2017.
In addition to the Saudi economy, Saudi Basic Industries Corporation (SABIC) Vice President Yousuf Al Bunian said the petrochemical industry pumps more than 45 billion riyals in cash annually in the Saudi economy. The company’s sales in the local markets reached about 2.7 million tons, accounting for 94% of the consumption of the Saudi market. “Before the founding of SABIC, the number of plastic manufacturers was seven, and today we have more than 2,000 factories in this field, which is a great addition to the Saudi economy,” he added.
SABIC’s shares: The capital of Saudi SABIC is SAR 30 billion, while its shares are 3 billion shares. This puts the total market value of SABIC’s shares at $387 billion in trading on the Saudi stock market. The investment fund of SABIC is SR 271 billion.
Global Position: The petrochemical industry is very important for growth and prosperity in the 21st century, especially as the world’s population is likely to reach an estimated 9 billion by 2050. Meeting the needs of this growing population requires sustainable growth. SABIC is undoubtedly able to play a key role in promoting the electric-powered automobile industry, developing stronger aircrafts and rail materials. And in the production of advanced fertilizers that increase the quantities of crops of the same area without the need to expand the agricultural area.
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