Corporate Governance

Strong corporate governance is at the core of SABIC's success. Through clear accountability, strategic oversight, and adherence to global best practices, we uphold responsible decision-making and build long-term stakeholder trust.

Corporate governance framework

Our governance practices are aligned with relevant laws and regulations, including those of the Capital Market Authority (CMA), while also adhering to internationally recognized best practices. The framework is established under SABIC's bylaws and the charters of the Board and its committees and is designed to foster long-term value creation, sustainability, and robust oversight across all levels of the organization.

The Board is composed of a majority of independent and non-executive directors, ensuring a clear division of responsibilities and effective oversight of management to further foster good governance. Regular evaluations are conducted to assess the Board’s effectiveness, diversity, and the adequacy of its collective skills and experience.

Upon completion of its previous term, the Board and its Committees were duly reconstituted in April 2025. Their new term will continue for three years, in line with SABIC’s commitment to regular Board renewal and effective corporate governance practices. The new Board appointments reflect effective governance, diversity, and the alignment of the Board composition with the company’s strategic objectives. In 2025, the Board approved revisions to the Risk Management and Cybersecurity policies, strengthening business continuity management and embedding risk management practices in decision-making. Additional corporate policies are currently under review and are scheduled to be presented to the Board in 2026.

Board structure, composition, and diversity

SABIC has a one-tier Board consisting of nine directors, the majority of whom are non-executives, including independent directors. The SABIC Board has the right size and skill mix for managing the company effectively. On April 10, 2025, the Board commenced a new three-year term with a refreshed formation with three new directors, including a woman. The new formation is in furtherance of the Board's diversity and skill balance, with directors from diverse academic backgrounds, expertise, and nationalities, coming from Saudi Arabia, the United States of America and Switzerland. Three non-director members on the Board committees come from the Netherlands and Australia.

Members of the Board as pictured from left to right: Dr. Ramesh Ramachandran, Dr. Faisal Al-Faqeer, Lucrèce De Ridder, Dr. Mohammed Al-Qahtani, Khalid Al-Dabbagh, Abdulrahman Al-Fageeh, Ziad Al-Murshed, Yousef Al-Zamel, Mohammed Al-Subaie.

As of December 31, 2025, the SABIC Board comprises the following directors:

(1) Left the Board and its Committees on April 9, 2025.

Further details about Board composition.

Gender diversity

In line with its approach to enhancing women's representation at the executive leadership and Board of Directors levels, SABIC appointed Ms. Lucrèce De Ridder to its Board of Directors for its new term (April 10, 2025 to April 9, 2028). Ms. De Ridder brings to the SABIC Board proven expertise in specialty chemicals, technology, and innovation, ESG and sustainability, and other areas of expertise significant to the present-day business.

Nomination and selection

Nominations for Board membership are publicly invited. Candidates are objectively assessed and short-listed based on merit and in accordance with the principles and criteria set forth in SABIC's Board Membership Policy. The Board's needs for skills, expertise balance, and enhanced diversity are also considered during the nomination process. Candidates are nominated by the Board Remuneration and Nomination Committee (BRNC) and the Board for election by voting at the General Assembly (GA) for a three-year term or for the remainder of the Board term. The Board was reformed through GA voting on April 9, 2025, for a new three-year term ending on April 9, 2028.

Board performance assessment

SABIC has updated the guidelines and tools for conducting its Board assessment with the following frequency and scopes:

• An annual assessment conducted through a tailored written survey, which assesses the individual and collective performance of the Board. Board members reflect on and transparently respond to questions covering aspects such as the Board's size, independence, diversity, skills, relationship with management, meeting effectiveness, and information flow. The assessment results are considered for the creation of an action plan as part of the Board's continuous improvement process.
• A Board assessment facilitated by an external board performance review consultant, conducted every three years. It uses written surveys and individual interviews to assess the individual and collective performance of the Board and committees, Board dynamics, information structure, and selected executives' performance is also assessed. In 2025, the Company assigned an external consultant and preparations for the assessment process have been initiated.

_{Disclaimer: This abridged interactive version of the SABIC Integrated Annual Report 2025 is based on the original PDF report published on this website. In case of any discrepancy, the original PDF report will prevail.}