Chairman's Message

SABIC occupies a unique commercial position. From our base in Saudi Arabia, we have expanded into high-growth economies, enabling us to forge links in the numerous value chains for chemical products. With a solid foundation of financial resilience, disciplined governance, cutting-edge technologies, and a long-term growth perspective, we have in place the fundamental elements to thrive in a global industry undergoing profound change.

Serving as SABIC's Chairman of the Board of Directors, I am continually impressed by the passion and drive of the company's employees. My ongoing conversations and engagements with them further solidify my confidence that they will continue to strive for excellence amid the uncertainty facing the industry. To support this drive for excellence, the Board of Directors works with SABIC's management to review and approve business strategy and investment plans, considering both opportunities and risks. We oversee the allocation of resources to execute our strategy and create lasting value.

The unique strengths of our employees, strategic technology application and development, and the advantages of our geography allow SABIC to make a compelling investment case. Our strong balance sheet, supported by an A+/A1 standalone credit rating, the highest in the industry, demonstrates our ability to navigate business cycles while maintaining capital discipline. In 2024, Moody's upgraded our long-term credit rating from A1 to Aa3 following Saudi Arabia's sovereign rating upgrade, further reinforcing our financial position. With a track record of dividend stability, we remain committed to delivering consistent returns to investors.

Our role in global capital markets has also expanded over the last half decade. Today, 30% of our shares are freely floated, with foreign investor participation rising from just 1% in 2018 to 6.17% in 2024. As Saudi Arabia continues to integrate into global markets, SABIC is at the forefront, engaging with investors, strengthening its financial position, and ensuring transparency in corporate governance.

As stewards of SABIC's long-term vision, the Board remains committed to ensuring that the company delivers sustainable value to shareholders while maintaining financial resilience amid evolving industry dynamics and macroeconomic challenges. In 2024, we focused on portfolio management, capital efficiency, and strategic investments to contend with persistent market challenges, including overcapacity and price pressures in key regions, while maintaining SABIC's competitive standing.

We have announced interim cash dividends of 3.4 per share for 2024, totaling SAR 10.20 Bn. (US$ 2.72 Bn.). Our net cash position stood at SAR 3.01 Bn. (US$ 0.81 Bn.) as of the end of 2024.  We have also modified the protocol for disclosing the Board of Directors' decision on interim dividend distributions, ensuring dividends more accurately reflect the company's financial performance.

SABIC's brand value remained strong at US$ 4.9 Bn. in 2024, reinforcing our position as the second-most valuable brand in the chemicals industry. Sustaining this value in a dynamic market reflects the trust we have built with customers and our continued dedication to enabling their success.

Guiding SABIC's strategic transformation is one of the Board's central roles. At the core of this are four interconnected strategic levers: transformation, portfolio management, growth, and value creation. Rather than standalone initiatives, these levers form a unified framework for strengthening SABIC's competitive position. The Board oversees the execution of this strategy, ensuring that investments align with long-term growth and economic returns while underperforming assets are structurally improved or otherwise monetized.

At the heart of our strategy is sustainability-driven innovation. The global push toward lower-carbon solutions, product circularity, and energy transition is reshaping the industry, and SABIC is integrating these initiatives into its core portfolio. This year, we marked a key milestone in our collaboration with BASF and Linde by starting up the world's first large-scale demonstration plant for an electrically heated steam-cracking furnace at BASF's Ludwigshafen site. We also launched a new portfolio of low-carbon methanol products that incorporate captured CO₂ as a feedstock and are certified under the ISCC Carbon Footprint Certification.

SABIC also plays an important role in supporting Saudi Vision 2030. As the national chemicals champion, we are strengthening Saudi Arabia's global competitiveness by developing its downstream industries and building local capabilities that support long-term economic diversification.

Our impact is tangible. In 2024, SABIC's local spending on goods and services reached SAR 31.7 Bn. (US$ 8.5 Bn.), contributing to a 4.5% increase in our Local Content Score to 48.3%. Through initiatives like NUSANED™, we continue to drive the growth of small- and medium-sized enterprises in local supply chains, enabling the creation of 8,682 new jobs in 2024 alone.

Workforce development is equally critical to our national impact. SABIC has exceeded expectations under the National Training Campaign, delivering 750,000 training opportunities – far surpassing our initial pledge of 200,000 by 2025. Our training programs and scholarship initiatives are equipping the next generation of Saudi talent with the skills to drive the country's future economic success.

Our focus on social responsibility is deeply embedded in our corporate culture as we support communities where we live and work. A key highlight this year was hosting the 56th International Chemistry Olympiad, bringing together talented young chemists from across the world to showcase their scientific knowledge and inspire an interest in chemistry. Our broad CSR impact earned multiple recognitions, including honors from the Saudi Ministry of Health for public and mental health initiatives, recognition from the King Salman Humanitarian Aid and Relief Center, and the ‘Outstanding Corporate Volunteer Service' award in China.

The path ahead presents both challenges and opportunities. Rapid advancements in electrification, decarbonization, and materials science are requiring our industry to adapt, and policy shifts and regulatory developments will continue to influence market dynamics and customer demands. As we look to 2025 and beyond, our focus will be on guiding SABIC's transformation and unlocking new opportunities while remaining true to our purpose of Chemistry that Matters™. These efforts will also lay the foundation for long-term sustainable growth in line with Saudi Arabia's broader vision for national development, unfolding under the leadership of King Salman bin Abdulaziz Al-Saud, the Custodian of the Two Holy Mosques, and HRH Prince Mohammed bin Salman bin Abdulaziz Al-Saud, the Crown Prince and Prime Minister.

I extend my appreciation to all SABIC's employees for their dedication, our customers and partners for their trust, and our shareholders for their continued confidence in SABIC's ability to deliver value. I also thank my fellow Board members for their guidance and HRH Prince Abdulaziz bin Salman bin Abdulaziz Al-Saud, Minister of Energy, and his ministry for their ongoing support. The engagement and goodwill of our stakeholders are essential to shaping the future of SABIC.

_{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.}