Search form

You are here

  • Home
  • Saudi chemical giant SABIC achieves higher Q1 profit as sales hit $14bn


Saudi chemical giant SABIC achieves higher Q1 profit as sales hit $14bn

The Riyadh-based company attributed the stronger results to higher average selling prices which were up 3 percent.
Short Url

https://arab.news/4vnj2

Updated 14 May 2022
Salma Wael & Aqila Alasaeed
Follow

Saudi chemical giant SABIC achieves higher Q1 profit as sales hit $14bn

  • CEO expects cost pressures to weigh on earnings despite ‘unprecedented’ Q1 results
Updated 14 May 2022
Salma Wael & Aqila Alasaeed

RIYADH: Saudi chemical giant SABIC has reported a 33 percent surge in first-quarter profits, buoyed by 40-percent growth in sales to SR53 billion ($14 billion).

Profits soared to SR6.47 billion last quarter, compared to SR4.9 billion in the same quarter a year earlier, according to a bourse filing.

The Riyadh-based company attributed the stronger results to higher average selling prices which were up 3 percent on a quarterly basis as well as an increase in sales volume. 

SABIC’s net profit of SR6.47 billion ($1.72 billion) after Islamic zakat and other taxes topped the 5.125 billion riyals forecast by analysts, Refinitiv data showed.

Sales rose 40 percent to SR52.64 billion, topping analysts forecast of SR50.042.

“SABIC’s first-quarter results demonstrated strong performance driven by continued healthy demand for our products, higher oil prices, and our diverse global portfolio,” commented CEO, Yousef Al-Benyan.

“In 2022, SABIC will remain focused on delivering its growth strategy, achieving operational resilience, and meeting our ESG commitments while at all times maintaining a strong balance sheet,” he added.

Among the major developments this quarter, SABIC announced the successful start-up of the Gulf Coast Growth Ventures, a world-scale manufacturing facility in San Patricio County, Texas.

It also completed its purchase of Clariant’s 50 percent share in Scientific Design, a leading catalysts producer and licensor of high-performance process technologies. This will unlock new growth potential for SABIC by strengthening and complementing the high-performance capabilities of its Specialties business. 

SABIC’s first-quarter results demonstrated strong performance driven by continued healthy demand for our products.

Yousef Al-Benyan, CEO

During the first quarter of 2022, SABIC continued to drive greater sustainability and innovation across the global chemicals industry. The company recently introduced a new bio-based and ISSC+ certified copolymer to help the consumer electronics industry achieve net-zero carbon emission goals.

In the reporting period, five innovative technologies created by SABIC were named among the winners of the annual Edison Awards, which honor the world’s most innovative new products, services and business leaders. The awards in four different categories reflect SABIC’s diverse range of innovative solutions.

SABIC’s commitment to adopting the highest Environmental, Social and Governance (ESG) Standards was also recognized during the first quarter of 2022, with the company claiming the “Best ESG” Award at the Saudi Capital Market Awards 2021

State oil giant Saudi Aramco bought a 70 percent stake in SABIC from Public Investment Fund in June 2020.

SABIC said synergies from Saudi Aramco’s stake purchase as of March 2022 stood at SR2.09 billion, including SR334 million in 2022.

Outlook

Commenting on the performance, Al-Benyan said the results for the first quarter were unprecedented, but cost pressures are expected to weigh on earnings for the rest of the year.

Speaking at SABIC’s post-earnings announcement conference, he reiterated that solid figures were supported by enhanced diversification of products, higher oil prices and stronger global reach, with SABIC’s latest ExxonMobil venture in the US Gulf Coast contributing largely to the results.

Still, a drop in demand on the back of higher inflation and interest rates as well as rising feedstock costs and supply chain woes remain a challenge.

“The average of the cost increased by 3 percent compared to the fourth quarter in 2021, and by 90 percent from the first quarter of 2021,” Al-Benyan noted.

Al-Benyan concluded that geopolitical tensions which sent oil prices to record levels posed no threat to SABIC’s operations, adding that it still doesn’t plan to enter the debt market.

Shares down

Shares of Saudi Basic Industries Corp. went down on Thursday. The Riyadh-based company saw its share price drop by 1.6 percent to SR121 ($32.3) at the closing bell, hours after it announced a surge in first-quarter profit.

Despite a 33 percent profit jump, the chemical major said it expects a drop in demand in addition to rising costs to weigh on earnings for the rest of the year.

Topics: SABIC Tadawul All Share Index (TASI)

Related

Special video
Business & Economy
SABIC and its affiliates bet on future with over 10,000 patent applications
Business & Economy
SABIC Agri-Nutrients first-quarter profits up 500% as sales more than triple
Business & Economy
SABIC expects cost pressures to weigh on earnings despite ‘unprecedented’ Q1 results: CEO

Saudi Arabia’s real estate sector thrives with $39bn in projects, record investment growth

Updated 4 sec ago
NADIN HASSAN  
Follow

Saudi Arabia’s real estate sector thrives with $39bn in projects, record investment growth

Updated 4 sec ago
NADIN HASSAN  

RIYADH: Saudi Arabia’s real estate regulatory framework spurred significant growth in 2024, with 192 project licenses issued, totaling SR147 billion ($39 billion), according to a top official.

During the opening remarks of the fourth Real Estate Future Forum held in Riyadh, Saudi Minister of Municipalities and Housing Majid Al-Hogail said that the General Authority for Real Estate initiatives aims to enhance market transparency, attract investment, and regulate off-plan developments.

“The regulatory framework has contributed to significant growth over the past year, with the issuance of 192 licenses for projects exceeding a total value of 147 billion riyals, equivalent to $39 billion,” Al-Hogail said.

He added: “With the launch of real estate legislative initiatives, we have seen growth across all relevant fields. This regulatory framework aims to facilitate and regulate off-plan real estate project development provisions, from the licensing process to project completion.”

The forum is a unique platform uniting investors, consultants, and decision-makers from 120 countries under one umbrella.

It features over 500 speakers from both the public and private sectors, aiming to not only discuss the future of real estate but also shape a clear, unified vision that reflects shared ambitions and aspirations.

“The forum creates international high-quality opportunities to explore our real estate sector and enhance the quality of life, based on sustainable cities equipped with services that meet the expectations of residents in the Kingdom,” Al-Hogail said.

He added: “We are committed to continuing our efforts to ensure the sustainability of the real estate sector, attracting more international investments while creating a highly regulated environment that turns challenges into opportunities.”

Al-Hogail said that Saudi Arabia’s real estate sector has evolved from traditional urban development to become a key driver of both economic and social progress, with a strong focus on sustainability and innovation.

“We are at a crossroads where experience, innovation, and agility converge, turning dreams into reality. Our message to investors and innovators is clear — that the Kingdom is not just a place inclusive to project,” he said.

The minister also said that over the past several years, more than 20 key real estate regulations have been introduced by the General Authority for Real Estate, enhancing market transparency, attractiveness, and authenticity.

“These regulations have positioned the Saudi real estate market as one of the fastest-growing sectors globally, as highlighted in the 2024 Global Real Estate Transparency Index report,” Al-Hogail said.

Abdullah Al-Hammad, CEO of the Real Estate General Authority, said that the real estate sector’s contribution to the gross domestic product reached 12 percent, reflecting its growing importance in the national economy.

“The real estate sector achieved the highest participation rate in the labor market, with 25 percent of the participants in the social insurance system,” Al-Hammad said, emphasizing the sector’s role in employment generation and economic diversification.

He also said that more than 1130 licenses for foreign real estate investments were issued during the third quarter of 2024, demonstrating increased international interest in the Saudi market.

The first day of the event included announcements including the National Housing Company launching its new technology-focused company, NHC Innovation, to provide innovative real estate and municipal solutions and develop new technologies that meet market aspirations.

Announced by the CEO of NHC Mohammed bin Saleh Al-Buti, the new company will serve as an innovative technological arm, utilizing the latest technologies and best practices to develop solutions that contribute to sustainable growth.

The strategic expansion represents a significant move toward delivering technological solutions that meet market ambitions and enhance excellence and competitiveness in the real estate and municipal sectors.

NHC Innovation is set to develop and operate more than 400 services across 10 digital real estate platforms, serving over 19 million users.

These platforms include Sakani, Balady, Ejar, Forsah, and others, offering smart and advanced solutions to enable digital transformation in the real estate and municipal sectors.

The company focuses on providing innovative services that cater to evolving market needs while emphasizing sustainability and technological advancement.

This aligns with the objectives of Saudi Arabia’s digital transformation strategy, positioning the Kingdom as a global hub that supports competitiveness in the technology sector.

The minister of municipalities and housing, the minister of industry and mineral resources, and the CEO of NHC participated in the signing ceremonies of agreements between the company and government entities and the private sector, with a total value of approximately SR30 billion.

One of the agreements is a memorandum of understanding signed between Asir Region Municipality and AMEK Group in tourism creation and adventures for up to SR600 million.

The Ministry of Industry and Mineral Resources also signed an MoU to collaborate on supply chains and industrial link programs to support and lead local content in the real estate development sector

King Abdulaziz City for Science and Technology also signed an MoU, in cooperation with Al Saif Company which focuses on collaboration in developing construction and building using off-site construction technologies.

The NHC signed supply chain service agreements with several real estate development companies to enhance the success of real estate development projects and ensure the sustainability of quality and efficiency.

The company also signed an open purchase agreement with Zamil Air Conditioners Factory and Alfanar Construction Systems, to secure supply chains for air conditioning works, and ensure a steady supply for construction needs.

The Kingdom’s Vision 2030 reforms have positioned the country as a leader in real estate development, combining innovation, sustainability, and economic growth. 

Topics: RFF2025 Real Estate Future Forum Majid Al-Hogail

Related

Business & Economy
Saudi property sector poised for growth, key leaders at Real Estate Future Forum announce
Saudi Arabia
Saudi energy minister joins launch of consortium to promote sustainable concrete

Riyadh Air secures license for advanced flight simulator 

Updated 45 min 27 sec ago
Miguel Hadchity
Follow

Riyadh Air secures license for advanced flight simulator 

Updated 45 min 27 sec ago
Miguel Hadchity

RIYADH: Saudi Arabia’s Riyadh Air has obtained a General Authority of Civil Aviation license for its first Boeing 787-9 full-flight simulator, a key step in its preparations for a 2025 operational launch.

The device, aimed at enhancing pilot training and safety standards, is a major addition to Riyadh Air’s training infrastructure. 

This comes as Saudi Arabia aims to become a regional aviation hub, aligning with Vision 2030 goals to expand annual passenger capacity to 330 million, increase air cargo volumes to 4.5 million tonnes, and connect to 250 global destinations by the end of the decade. 

Peter Bellew, chief operating officer at Riyadh Air, said: “This milestone underscores our commitment to world-class pilot training and operational excellence. The advanced simulator will enhance our pilots’ capabilities, aligning with Riyadh Air’s ambition to redefine aviation standards and deliver a next-level flying experience.” 

He added: “We will continue investing in cutting-edge solutions that drive efficiency, safety, and excellence across our operations.” 

Captain Sulaiman Al-Muhaimedi, GACA’s executive vice president for aviation safety and environmental sustainability, presented the operational certificate to Bellew during a ceremony. 

Riyadh Air, a subsidiary of the Public Investment Fund launched by Crown Prince Mohammed bin Salman in March 2023, completed its first non-commercial flight from Riyadh to Jeddah for certification on Sept. 12. 

Topics: Riyadh Air Saudi aviation

Related

Business & Economy
Middle East’s rise to becoming global aviation hub ‘absolutely incredible,’ Menzies chairman says
Business & Economy
Riyadh Air plans new jet order decision early next year

Jordan’s exports to GAFTA countries rise by 15.6%

Updated 27 January 2025
REEM WALID 
Follow

Jordan’s exports to GAFTA countries rise by 15.6%

Updated 27 January 2025
REEM WALID 

RIYADH: Jordan’s exports to countries within the Greater Arab Free Trade Area recorded a year-on-year rise of 15.6 percent by the end of November, new figures revealed

According to official statistics compiled by the Jordan News Agency, the Middle Eastern nation’s exports to GAFTA countries reached 3.25 billion Jordanian dinars ($362 billion), up from 2.81 billion dinars in the same period of the previous year. Jordan’s exports to the 18 GAFTA countries include fertilizers, pharmaceuticals, and agricultural products. 

Similarly, the data showed that Jordan’s imports from the free trade zone also grew during the same period, rising by 8.5 percent to reach 4.69 billion dinars.

Imports from GAFTA countries primarily consist of crude oil and its derivatives, jewelry, and food products, as well as plastic sheets, titanium oxide, polystyrene, iron, and steel products, among others. 

The newly released data falls in line with the recent rise in exports and imports recorded between Jordan and GAFTA countries, which jumped 9.7 percent and 9.3 percent, respectively, in the first three months of 2024.

The data also showed that the increase in exports and imports helped reduce the trade deficit with GAFTA countries to 1.43 billion dinars, down from 1.50 billion dinars in the same period last year.

Meanwhile, trade volume between Jordan and GAFTA countries surged to 7.95 billion dinars by the end of November, compared to 7.14 billion dinars in the same period a year earlier. 

Saudi Arabia emerged as Jordan’s top export destination within the group, with exports to the country amounting to 1.07 billion dinars, a 13.7 percent rise from the same period in 2023.

The Kingdom also ranked as Jordan’s largest import source, with exchange totaling 2.69 billion dinars, resulting in a trade deficit of 1.66 billion dinars with Saudi Arabia by the end of November.

Jordan’s exports to US surges 14.9 percent

Additional data from Jordan News Agency disclosed that the country’s exports to the US increased 14.9 percent year on year in the first 11 months of 2024 to reach 2.04 billion dinars.

The country’s primary exports to the North American country include garments, jewelry, fertilizers, and pharmaceuticals as well as IT services, food products, live animals, and engineering goods.

Similarly, the data showed that Jordan’s imports from the US hit 1.13 billion dinars during the period, reflecting 4.7 rise compared to the corresponding period in 2023. 

Jordan’s imports from the US consist of mineral products, transportation equipment, machinery, electrical appliances, and grains as well as chemicals, medical devices, processed foods, and wood pulp, among others.

This is in line with the fact that the trade partnership between the two nations was strengthened by the Free Trade Agreement, which was signed in October 2000 and took full effect in January 2010. This deal has led to an eightfold surge in bilateral trade, highlighting its importance in fortifying economic connections.

As a result of the rise in exports and imports, the trade balance between Jordan and the US recorded a surplus of 910 million dinars during the period.

The total volume of trade between the two countries climbed to 3.17 billion dinars by the end of November, compared to 2.86 billion dinars in the same period of 2023. 

Topics: Jordan Jordan economy Jordan exports

Related

graphic
Business & Economy
Saudi Arabia’s non-oil exports surge 19.7%: GASTAT 
Middle-East
Jordanian FM says Saudi Arabia plays key role in bringing comprehensive peace to Middle East

Saudi property sector poised for growth, key leaders at Real Estate Future Forum announce

Updated 27 January 2025
Miguel Hadchity
Follow

Saudi property sector poised for growth, key leaders at Real Estate Future Forum announce

Updated 27 January 2025
Miguel Hadchity

RIYADH: Industry leaders, policymakers, and investors gathered at the Real Estate Future Forum in Riyadh, where key announcements highlighted Saudi Arabia’s ongoing focus on property development, investment strategies, and tourism expansion.

Building on these initiatives, the Governor of Asir Region Prince Turki Bin Talal revealed that the Public Investment Fund has nine projects in development, with four already launched and five underway. 

“The largest PIF projects in the Kingdom are in the Asir region,” the governor said, adding that this is accompanied by an investment portfolio valued at SR30 billion ($7.9 billion).

Regarding hospitality, the governor highlighted that Asir currently has between 6,000 and 8,000 approved and licensed hotel rooms.

In line with this momentum, he also announced that the Ministry of Sports has officially recognized Abha’s World Cup bid as the best in the Kingdom.

Meanwhile, Prince Saud Bin Talal, governor of Al-Ahsa and acting CEO of the Al-Ahsa Development Authority, outlined plans for expanding the hospitality sector in the region. 

“In our pipeline, we have more than seven or eight hotels and over 25 rural lodges. Among the key developments are three five-star hotels: Hilton, Radisson Blu, and Hilton Garden Inn,” he said.

The Saudi Minister of Tourism Ahmed Al-Khateeb underscored the rapid growth of the hospitality sector, revealing that the Kingdom currently has 475,000 hotel rooms, with projections to reach 675,000 by 2030. 

Regarding hyper-tourism, he discussed the impact of the King Salman International Airport expansion and Riyadh Air, forecasting that at least 50 percent of the Kingdom’s tourism will be centered in the capital, while ensuring that efforts will not push the figure beyond 80–90 percent.

The expansion of King Salman International Airport is a key milestone in Saudi Arabia’s aviation growth, aligning with the country’s Vision 2030 objectives.

The first phase of the Terminal 1 expansion at King Khalid International Airport in Riyadh was inaugurated on Jan. 8, increasing the airport’s capacity to accommodate up to 7 million passengers annually.

This follows the completion of Terminals 3 and 4 in November 2022. 

The airport has consistently been recognized as the Kingdom’s top-performing facility, upholding the highest compliance and operational standards.

In the financial sector, the Chairman of the Capital Market Authority Mohammed El-Kuwaiz highlighted the increasing focus on Saudi Arabia’s real estate investment market. 

“Today, we have approximately 55 files for IPOs (initial public offerings) in the financial market, covering various sizes and companies. Around 20 percent of these files belong to real estate companies of different types,” he said.

He emphasized the growing diversity in real estate services, including developers and marketers, aligning with the Kingdom’s goal of securing financing across all productive sectors.

El-Kuwaiz further provided insights into best practices for listing companies, saying: “The best time to list a company is when its financial situation is stable and its funding needs are clear.”

He added: “If you’re prepared to share information as if they were partners, involve them in decision-making as if they were partners, and handle conflicts of interest as if they were partners, then you’re welcome.”

In a landmark decision, he also announced that listed companies owning properties in Makkah and Madinah can now welcome foreign investors, effective immediately. “On behalf of the CMA, we congratulate these companies,” he said.

Foreigners can now invest in Saudi-listed firms owning real estate in Makkah and Madinah, with non-Saudi ownership capped at 49 percent. The CMA said in a press release that the move enhances market competitiveness and supports Vision 2030.

The Real Estate Future Forum, running from Jan. 27 to 29 at the Four Seasons Hotel in Riyadh, aims to serve as a global platform for shaping the future of real estate. 

With over 300 speakers from 85 countries, the event will focus on innovations, sustainability efforts, and investment strategies driving the sector under the theme, “Future for Humanity: Shaping Dreams into Reality.”

Topics: SAUDI REAL ESTATE Real Estate Future Forum

Related

Business & Economy
Saudi Arabia opens door for foreign investment in Makkah and Madinah real estate 
Business & Economy
World leaders to attend Saudi Real Estate Future Forum 2025 for industry-shaping discussions

Saudi Arabia opens door for foreign investment in Makkah and Madinah real estate 

Updated 9 min 14 sec ago
Nirmal Narayanan
Follow

Saudi Arabia opens door for foreign investment in Makkah and Madinah real estate 

Updated 9 min 14 sec ago
Nirmal Narayanan

RIYADH: Foreigners can now invest in Saudi-listed companies owning real estate in Makkah and Madinah, following a landmark decision by the Saudi Capital Market Authority.

Effective immediately, the move aims to boost the capital market’s competitiveness and align with the Kingdom’s Vision 2030 economic diversification objectives, the CMA announced in a press release. 

While non-Saudis are allowed to purchase properties in the Kingdom, there are specific restrictions, and in the holy cities ownership is generally limited to Saudi nationals — although foreigners are allowed to lease properties there. 

Under the new guidelines, foreign investments are limited to shares or convertible debt instruments of listed companies. Total non-Saudi ownership, including individuals and legal entities, is capped at 49 percent of a company’s shares.

However, strategic foreign investors are prohibited from holding stakes in these companies. 

The move comes amid reforms across the region, with most neighboring countries allowing foreigners to own properties, primarily in free zones or designated areas under certain restrictions. 

“Through this announcement, the Capital Market Authority aims to stimulate investment, enhance the attractiveness and efficiency of the capital market, and strengthen its regional and international competitiveness while supporting the local economy,” said the CMA. 

The changes are also designed to stimulate foreign direct investment in the Kingdom’s capital market, as well as bolster its regional and international competitiveness. 

“This includes attracting foreign capital and providing the necessary liquidity for current and future projects in Makkah and Madinah through the investment products available in the Saudi market, positioning it as a key funding source for these distinctive developmental projects,” added the CMA. 

Strengthening the real estate sector and attracting more FDI into the Kingdom is one of the key goals outlined under the Vision 2030 program, as Saudi Arabia aims to reduce its dependence on crude revenues and diversify its economy. 

The Kingdom aims to attract $100 billion in FDI by the end of this decade, and the government body has been implementing various initiatives and reforms to enhance the attractiveness of the capital market.

Some of these efforts include allowing foreign residents to directly invest in the stock market, enabling non-Saudi investors to access the market through swap agreements, and permitting qualified foreign capital institutions to invest in listed securities. 

The CMA has also allowed foreign strategic investors to acquire strategic stakes in listed companies and directly invest in debt instruments. 

In 2021, the CMA also allowed non-Saudis to subscribe to real estate funds investing within the boundaries of Makkah and Madinah, which played a crucial role in increasing the attractiveness of the capital market to both regional and international investors. 

The share prices of real estate companies listed on Saudi Arabia’s stock exchange surged following the CMA’s announcement. 

Knowledge Economic City saw its share price rise by 9.89 percent to close at SR16.66 ($4.44). 

Jabal Omar Development Co.’s share price also increased by 10 percent to SR25.85, while Makkah Construction and Development Co.’s stock price climbed 9.84 percent to close at SR106. 

Topics: Capital Market Authority (CMA) real estate

Related

Business & Economy
Saudi CMA seeks feedback on foreign investment and market access reforms
Business & Economy
Saudi Arabia’s CMA approves regulatory changes to strengthen debt market

Latest updates

Pakistan to issue red notices for human traffickers in bid to curb practice
Pakistan central bank cuts key rate by 100 bps
19 arrested after Turkiye hotel inferno disaster
Pakistan reaffirms support for Beijing after reports of interior minister attending anti-China event
Pakistan court sentences four men to death for ‘online blasphemy’

Search form

Print Edition
Read pdf version Subscribe now
© 2025 SAUDI RESEARCH & PUBLISHING COMPANY, All Rights Reserved And subject to Terms of Use Agreement.