Saudi Arabia's Basic Industries Corporation (SABIC) is a Saudi public joint-stock company operating in the field of petrochemical industries. It was established in 1976 by a Royal Decree issued in the same year. Moreover, 70 percent of its shares are owned by Saudi Aramco, while 30 percent is traded on the Saudi stock market. Its abbreviation is formed from the first letters of its official name in English, while the abbreviation in Arabic denotes mastery.

Development of SABIC

In 1983, SABIC began its first industrial production through its affiliates (Hadeed, al-Bayroni, and Ar-Razi), followed by the National Industrial Gases Co (Gas) in 1984. Then, six companies initiated the production process simultaneously in 1985. These companies are: SADAF, YANPET, Petrokemya, Kemya, Sharq, and Ibn Sina.

SABIC continued to strengthen its manufacturing capabilities locally and moved towards global markets. In 2002, it initiated the acquisition of the petrochemical division of DSM in Europe, which owns manufacturing facilities in the Netherlands, Germany, and the United Kingdom. Moreover, SABIC acquired Huntsman Petrochemicals (UK) in 2006 and renamed it SABIC UK Petrochemicals, a distinctive addition to SABIC's operations in Europe. In 2007, SABIC purchased the plastic industries division of the American General Electric Company, which became the strategic work unit for specialized products that add value and expand the company's product line.

SABIC's work

Headquartered in the Saudi capital, Riyadh, SABIC operates through several strategic business units, including petrochemicals, polymers, chemicals, agro-nutrients, specialized products, independent businesses, and metals (Hadeed.)

Since the company's launch, its development journey persisted. In 1985, its total production reached 6.3 million mt, and continued to rise year after year until it reached 60.8 million mt in 2020, before rising to 61 million mt in 2022.

SABIC is currently the second most valuable brand in the chemical sector, with manufacturing sites and offices spread throughout fifty nations worldwide, across five primary geographical areas: the USA, Europe, the Middle East, South Asia, and North Asia.

SABIC was founded on a concept that serves both the industry and the environment, which is to convert waste gases into raw materials for various industries. It focuses on developing a variety of basic materials derived from chemicals, polymers, metals, fertilizers, and specialized products for manufacturers to use in the infrastructure, construction, and agriculture industries, as well as daily products.

While Aramco served as the starting point for petroleum-based development, SABIC operations coincided with the early stages of development in the Kingdom, and laid the groundwork for the Saudi industrial sector in line with the establishment of both Jubail and Yanbu industrial cities. SABIC founded several subsidiaries with international firms based on investment partnerships.

SABIC is one of the companies that play a leading role in achieving the goals of Saudi Vision 2030. It launched the Local Content and Business Development Unit to support entrepreneurship in the industrial sector, and then initiated Nusaned. The initiative will allow local investment opportunities to increase the capabilities of small and medium enterprises (SMEs,) create economic diversification and job opportunities, and support the national output.

SABIC manufacturing complexes

Due to its extensive global presence, SABIC holds a dominant position in the global markets with primary petrochemical products, such as ethylene, ethylene glycol, methanol, methyl tertiary butyl ether, polyethylene, and engineering plastics and their derivatives.

SABIC's industrial network includes sixty-five world-class manufacturing sites in the Middle East, the Americas, Europe, and Asia. The biggest strategic production unit in SABIC, the petrochemical unit, produces the most considerable portion of the company's total production capacity.

The Saudi Iron and Steel Company (HADEED,) owned by SABIC and headquartered in Jubail Industrial City, is one of the largest integrated steel production companies worldwide. Moreover, SABIC Agri-Nutrients Company manufactures a range of nutrient-rich fertilizers, starting from basic fertilizers to highly specialized fertilizer products.

SABIC's expansion

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