Chairman's Message

As SABIC approaches its 50th year, we reflect on the principles that have consistently guided the company's development and long-term value creation.

SABIC was founded on three enduring principles. The first principle – sustainability – arises from its original mandate from Saudi Arabia's leadership to make useful products out of natural gas that would otherwise have been flared. The second principle – technological excellence – recognizes that large-scale chemical production requires not only scientific innovation but also superior engineering and operational discipline, which has resulted in over 10,700 accredited patents and dozens of awards and recognitions by globally renowned and elite institutes.

The third principle – collaboration – enabled SABIC to grow from a fledgling enterprise in 1976 into one of the largest global chemicals conglomerates with operations and presence in more than 60 locations worldwide.

Through partnerships with leading international companies, SABIC secured capital, technology, market reach, and operational know-how. In addition, with close cooperation with Saudi public and private sector stakeholders, it expanded market access and boosted demand for its products.

By adhering to these three principles for five decades, SABIC created: a solid balance sheet; a leading market share in certain products; a work culture based on ethics and compliance; and a set of top-notch local and global manufacturing plants, technology centers, and sales offices distributed around the globe.

SABIC had to draw upon all its historic strengths to navigate the global chemical industry's many twists and turns in the last couple of years – probably one of the most challenging periods in the history of the industry. Slowing global economic activity and seriously weakened demand, coupled with overcapacity, exerted significant downward pressure on petrochemical pricing.

In response to these industry conditions, SABIC's Board has re-evaluated the company's strategic direction and adopted the intense execution of a strategy built on three pillars: portfolio optimization, corporate transformation, and selective growth.

Portfolio optimization is being pursued with increased rigor and clear financial objectives. By addressing and focusing on underperforming and non-strategic assets, SABIC aims to strengthen returns, free cash flow, enhance credit metrics, and reallocate capital toward advantaged asset–product– market combinations. The Board is mindful of the human and social considerations associated with these actions and is committed to their responsible execution.

The second pillar of our strategy – corporate transformation – is focused on structurally improving efficiency, cost competitiveness, and capital discipline. This means increasing the reliability of our manufacturing assets as well as trimming general and administrative expenses. It also means optimizing procurement, tightening capital allocation, strengthening our pricing framework, and enhancing operational effectiveness.

With the above two portfolio optimization and corporate transformation initiatives, SABIC should enhance its profitability, shareholder returns, and cash generation capabilities, adding more resilience to its balance sheet.

The third pillar – selective growth – builds primarily on SABIC's strategic alignment with Saudi Aramco, which, since 2020, has resulted in a total of US$ 3.27 Bn. in cumulative synergistic benefits. In addition, selective future growth will continue to be driven by secured and economic feedstock, strong market presence, and proprietary-advantaged technology. SABIC's current strong balance sheet, with very low gearing, will be a catalyst in such selective future growth.

Additionally, the envisaged future growth will leverage SABIC's global marketing capabilities in support of Saudi Arabia's liquids-to-chemicals agenda and expand SABIC's line of globally recognized specialty polymers. It will also require the continued delivery of world-class projects in our Chemicals and Agri-Nutrients businesses.

Throughout the economic cycle, SABIC remains committed to disciplined capital management and competitive shareholder returns. The company continues to balance investment in long-term growth with sustainable dividend distributions. In 2025, SABIC declared cash dividends totaling SAR 9 Bn., equivalent to SAR 3 per share.

As Saudi Arabia's chemicals champion, SABIC plays a central role in developing domestic downstream industries and manufacturing capabilities. In 2025, 56% of SABIC's spending was directed toward the Saudi economy, as reflected in its Local Content score. Through the multiplier effect, this contribution supports economic diversification in line with the Saudi Vision 2030 being realized under the leadership of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and HRH Prince Mohammed bin Salman Al Saud, the Crown Prince and Prime Minister, and the continued support of HRH Prince Abdulaziz bin Salman Al Saud, the Minister of Energy.

Despite ongoing market uncertainty, the Board remains confident in SABIC's fundamentals, strategic direction, and growth potential. SABIC's reputation remains strong among customers, partners, and stakeholders. The SABIC brand, recently valued at US$ 5.19 Bn., maintains SABIC's position as the world's second-most valuable chemical brand for the sixth consecutive year.

In closing, I would like to express my appreciation to SABIC's employees for their continued professionalism and commitment, and to our customers and partners for their trust and collaboration. Above all, I thank SABIC's shareholders for their continued confidence in the company as we build on five decades of experience to continue delivering value over the long term.

_{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.}