Related Party Transactions
The company assumes marketing and sales of affiliates’ products in various local, regional and global markets through marketing agreements signed with those companies. For example, we have agreements with Aramco to buy feedstock used for the production of SABIC products. Similarly, through marketing agreements, SABIC and Aramco each sell certain products for the other.
The affiliates sign services agreements with our corporate functions to provide various business services. Our Corporate Finance function provides accounting services. Engineering is provided by our Engineering and Project Management organization. Corporate Human Resources provides human resources support. Shared Services provides information technology. The company also provides its affiliates with procurement services, involving transportation, warehouse services and delivery of materials related to spare parts through the SABIC Shared Services function.
SABIC’s Legal Affairs, Enterprise Risk Management, Internal Audit and EHSS departments are designed to safeguard the interests of all SABIC stakeholders, including customers, employees and shareholders, and to manage SABIC’s risks in a way that promotes our 2025 goal of becoming the world’s preferred leader in chemicals.
The SABIC Legal Department protects the business against legal risks, through legal advice, employee training, and developing and leading corporate legal strategy to promote and protect the company's goals, strategies and priorities. The Legal Department safeguards compliance with the laws and regulations of the jurisdictions where we operate.
Enterprise Risk Management focuses on ensuring a risk mindful culture, addressing key business interruption risks, ensuring a comprehensive consolidated insurance program and improving our data and process governance structure.
Internal Audit performs operational reviews of all aspects of activities in the business units and functions of SABIC and affiliates inside and outside Saudi Arabia. In addition, our Environment, Health, Safety and Security Department is responsible for supporting and protecting the Company and its affiliates to identify risk and ensure safety in compliance with government rules and regulations and industry standards.