SearchStrategy
Our strategy responds to transformative shifts and aligns with the goals of Saudi Vision 2030.
Business Model
STRATEGY
SABIC's strategy is driven by our vision to be the preferred world leader in chemicals. It is designed to deliver sustainable, long-term value by strengthening the fundamentals of our business model while positioning the company for future growth.
The industry spans four primary segments: petrochemicals, agri-nutrients, specialties, and industrial gases. Success in these sectors hinges on a combination of scale, global reach, cost, portfolio, technology, and functional excellence – with people and their capabilities at the heart of it all.
The industry is being reshaped by broader megatrends, including China's drive for structural self-sufficiency, changing trade dynamics, a growing focus on sustainability, the energy transition, digitalization, and shifting demographics. Driven by the priorities of Saudi Vision 2030, Saudi Arabia is undergoing rapid transformation, Additionally, Saudi Aramco's advancing downstream strategy offers meaningful synergies.
SABIC's strategy takes into account the company's position, industry dynamics, and the aspirations of Saudi Arabia and shareholders. We aim to strengthen our position as a leading company, underpinned by a relentless focus on shareholder value creation and the integration of sustainability principles into our core business, supporting resilience and responsible growth.
The strategy is built on three pillars:
- Portfolio Optimization – enhancing core positions and focusing on profitable markets.
- Transformation – addressing cost excellence and value creation.
- Accretive Growth – profitable growth projects funded by unlocking capital and proceeds and uplifting EBITDA.
Portfolio optimization
We continually assess our portfolio to ensure every business line, product and asset is aligned with long-term strategic and financial objectives. For the core portfolio, we drive progress through improvements in customer centricity and reliability, focusing on connectivity, streamlined interactions, and further technical services for products and applications. Key examples from 2025 include the unveiling of new technologies for EV charging through our BLUEHEROTM portfolio.
At the same time, we proactively identify non-profitable assets and businesses. Where performance is not meeting expectations and future value creation is limited, we pursue divestment, restructure, or responsible exits to unlock capital and resources to reinvest in areas with the highest return potential. Key examples from 2025 include the divestment of the European Petrochemicals and Engineering Thermoplastics Business in the Americas and Europe, in preparation for divestitures that were announced on January 8, 2026.
At the same time, we proactively identify non-profitable assets and businesses. Where performance is not meeting expectations and future value creation is limited, we pursue divestment, restructure, or responsible exits to unlock capital and resources to reinvest in areas with the highest return potential. Key examples from 2025 include the divestment of the European Petrochemicals and Engineering Thermoplastics Business in the Americas and Europe, in preparation for divestitures that were announced on January 8, 2026.
Transformation
Our transformation agenda focuses on securing the value creation expected by our stakeholders. We target a recurring EBITDA impact of US$ 3 Bn. by 2030 through a focus on cost excellence, value creation, and capital discipline.
We are simplifying operations, optimizing our cost base, and deploying technology to reduce manual effort and increase productivity. Cash impact is expected from capital-discipline improvement, which includes optimization of spending on mega-projects and sustaining capital expenditure optimization. We strengthen core offerings and leverage technology to respond to evolving customer needs with greater agility. Transformation remains a multi-year journey, and we are maintaining momentum to realize its full potential. The Transformation Program is progressing today as planned, with recurring EBITDA impact of US$ 623 Mn in 2025, exceeding our year-end target.
We are simplifying operations, optimizing our cost base, and deploying technology to reduce manual effort and increase productivity. Cash impact is expected from capital-discipline improvement, which includes optimization of spending on mega-projects and sustaining capital expenditure optimization. We strengthen core offerings and leverage technology to respond to evolving customer needs with greater agility. Transformation remains a multi-year journey, and we are maintaining momentum to realize its full potential. The Transformation Program is progressing today as planned, with recurring EBITDA impact of US$ 623 Mn in 2025, exceeding our year-end target.
Accretive growth
We aim to invest selectively in highly attractive projects aligned with our core portfolio and growth regions, leveraging regional competitive advantages such as feedstock, capital efficiency, and market access. We will create win-win partnerships with regional and global chemical companies. SABIC will also enable Saudi Aramco's downstream strategy through investments, sales and marketing, technology licensing, manufacturing support and servicing, and infrastructure sharing, creating value for shareholders. Key examples include the startup of our new MTBE plant at Petrokemya and petrochemicals complex at Fujian, China.
Our key enablers
While many capabilities support our strategy, four key enablers are essential to delivering our ambition.
- Innovation delivers integrated technology and intellectual property solutions that strengthen our core portfolio and manufacturing assets, broaden product diversity, and accelerate sustainable growth.
- Digitalization enables the utilization of vast amounts of data and information across business units and the business environment for visibility, higher quality, and accelerated decision making.
- Sustainability underpins how SABIC engages with its people, its partners and suppliers, its communities, and its environment while delivering value to shareholders. Our sustainability strategy is integrated with our business strategy and drives the business toward carbon neutrality, plastics circularity, and compliance and preparedness for future regulatory obligations.
- Employment and workforce management seeks to ensure our capabilities match our strategic requirements by advancing the technical and professional skills of the workforce, developing commercial and leadership competencies, supporting the progress of localization, besides focusing on equity, inclusion, and a sense of belonging.
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.