LOCAL CONTENT

By empowering downstream industries, building local industrial capabilities, and fostering innovation, SABIC is playing a vital role in Saudi Arabia's transition toward a more self-sustaining and globally competitive economy. Since its inception in 2017, SABIC's Local Content and Business Development Unit (LCBDU) has proven to be a national champion in driving Saudi Arabia's economic transformation and industrial localization. SABIC's flagship initiatives such as NUSANED™, Nusaned Investment™, and the Home of Innovation™ (HoI), serve as key enablers of national development priorities and demonstrate the company's commitment to driving creativity, enabling downstream industries, and growing domestic capabilities to strengthen Saudi Arabia's global competitiveness and economic diversification. Notably, these initiatives are helping Saudi Arabia move away from a reliance on imports and towards a more self-sustaining economy. 

LOCALIZATION AND ECONOMIC IMPACT

SABIC's efforts to develop local industries and suppliers create economic value and enhance Saudi Arabia's strategic industrial sectors. In 2024, SABIC improved its Local Content (LC) Audited Score to 48.3%. We embedded LC requirements into 65 contracts generating SAR 2.2 Bn. in local content impact. More localization efforts redirected SAR 85.4 Mn. to local manufacturers across seven strategic value pools.

During the year under review, we participated in the inauguration of five new factories across key industrial sectors: a state-of-the- art manufacturing and innovation hub at the King Salman Energy Park (SPARK); an advanced chemical blending complex in Dammam; a specialty chemical manufacturing plant in Jubail; an electrical products and controls system facility in Dammam; and a manufacturing plant for low and medium voltage circuit breaker panels in Jeddah. Collectively, these projects are expected to generate over 973 new jobs for Saudi nationals while bolstering Saudi Arabia’s non-oil GDP.

NUSANED™

Furthermore, 24 new investors were onboarded to NUSANED™, contributing SAR 930 Mn. to the local economy and enabling the creation of 433 Saudi jobs. Additionally, 23 outreach investments were facilitated, leading to 70 Memoranda of Understanding (MoU) signings and 24 Letters of Intent (LoIs), with a combined production capacity potential of 100 kilotons per annum. At the Energy Localization Forum, SABIC signed 13 sizable procurement agreements worth SAR 1.8 Bn., delivering SAR 900 Mn. LC impact. Six MoUs valued at SAR 1 Bn. were also signed, focusing on supply chain sustainability, advanced manufacturing, and renewable energy.

In 2024, we launched the Nusaned Operational Excellence Program, a novel scheme designed to enhance the competitiveness of existing downstream SME factories. Through this program, assessments were conducted for eight factories, focusing on manufacturing, supply chain, finance, and EHSS. By transferring our proven industrial best practices, the program has enabled these factories to:

•  Address performance gaps and unlock growth potential.
•  Enhance operational efficiency and resilience.
•  Strengthen their ability to compete in local and global markets.

TECHNOLOGY AND INNOVATION

SABIC enabled businesses to adopt advanced solutions in 2024 by implementing technologies across strategic sectors, further advancing localization, and industrial capabilities.

The Home of Innovation™ (HoI) is a SABIC growth initiative designed to empower innovation, foster collaboration with local entities, and drive economic development in Saudi Arabia. Through this initiative, we bring together a diverse network of stakeholders, including SMEs, Original Equipment Manufacturers (OEMs), academic institutions, government entities, specifiers, and regulators, creating a platform that stimulates demand for innovative products and solutions while building a robust market for them within Saudi Arabia and the wider region.

As a state-of the-art experience center, Home of Innovation™ played a pivotal role in inspiring technological leadership. Reaching a milestone of 10,000 governmental and business visitors since inception, the initiative welcomed eight new strategic partners in 2024, onboarding 21 technologies and enabling localized solutions such as Hyper SIP panel manufacturing in collaboration with Ma'aden Industries for Metals. These advanced panels, produced with 100% locally sourced materials, exemplify our ability to utilize innovation to support national development goals.

Read more about our Local Content  initiatives.

_{Disclaimer: This abridged interactive version of the SABIC Integrated Annual Report 2024 is based on the original PDF report published on this website. In case of any discrepancy, the original PDF report will prevail.}