SABIC aims to expand its investments in China, Japan

Updated 27 November 2012

SABIC aims to expand its investments in China, Japan

Saudi Basic Industries Corporation (SABIC) plans seriously to expand its investments in China through the implementation of new expansion at the joint venture project, (SABIC Sinopec), in Tianjin, owned equally between the two sides.
Mohamed Al-Mady, vice chairman of SABIC & CEO told Arab News that his company should expand its presence in Chain after the success of the first phase projects, which focused on the production of ethylene with an annual production capacity of one million metric tons.
“We have accomplished a part of future plans for (SABIC Sinopec) complex. Constructions works started at the $1.7 billion polycarbonate plant with capacity of 260 thousand tons a year. This project, expected to be completed by 2015, represents the second phase of our expansion. This is not the end of our future plans. We are seeking new projects that could enhance the competitive position of the company especially in China”, Al-Mady said.
Al-Mady revealed that the products of this project will contribute to the development of the petrochemical sector in Tianjin area, and to push economic situation towards new horizons. “The products of (SABIC Sinopec) complex meet the requirements of petrochemical market in the Asia-Pacific region, as well as diversify the company's products, which considered the largest of its kind in Asia, and expand the target market” he said.
SABIC hopes that this project could support its competitive advantages and drive directions of China and Saudi Arabia to take the lead in the petrochemical sector, in addition to the strong and strategic ties between the two sides and strengthen friendly relations between China and Saudi Arabia.
SABIC plans also to expand its partnership in Japan, where it owns only a small plant there related to innovative plastics which has a portfolio of nearly 40,000 engineering thermoplastic resins, specialty compounds, films, sheets and additives, to provide innovative solutions for almost every area of modern life, including automotive, electronics, health care, lighting, and construction.
Al-Mady referred to the possibility of establishing new projects expected with Japanese, which is in its final stages of negotiation, which in turn will drive the company forward to further growth and push the company's strategy to forward, hinting that those plans have not yet been made.
SABIC operates 6 Strategic Business Units, has 60 world-class plants worldwide, 1 Corporate Research & Innovation Center, 12 Technology Centers, 4 Application Centers, 150 new products each year, and 8,000 global patents.
“We are the world’s 2nd largest diversified chemicals company, and the 88th largest public company. We have $89 billion in total assets, and annual revenues of over $50 billion. We are 33,500 direct employees strong, and have operations in over 40 countries around the world”, Al-Mady said.

Crown prince highlights key ways Saudi budget 2020 will contribute to Vision 2030

Updated 12 min 9 sec ago

Crown prince highlights key ways Saudi budget 2020 will contribute to Vision 2030

  • The budget for the coming year reflects and reinforces the commitment to implement the reforms

RIYADH: After King Salman announced Saudi Arabia’s budget for 2020 on Monday, Crown Prince Mohammed bin Salman highlighted some of its key elements and their implications, along with his thoughts on the ongoing implementation of economic reforms in the Kingdom.

He said that the government’s economic transformation of the country is progressing steadily in accordance with Vision 2030. The budget for the coming year reflects and reinforces the commitment to implement the reforms, plans and programs designed to help achieve this, he noted, and sets specific goals in a number of areas to help create a vibrant society, a prosperous economy and an ambitious homeland.

The crown prince added that the government is working to improve the quality of life in the Kingdom by developing and diversifying the economy, improving job opportunities and enhancing government services in terms of financial and economic stability, which is the main pillar of sustainable economic growth.

He also pointed out that the economic and structural reforms implemented during the past three years are having positive effects on the country’s financial and economic performance. The Kingdom has recently achieved remarkable increases in real GDP growth rates in the non-oil sector, and the government has encouraged the private sector play an important role in the economy, the positive results of which include significant growth in the business sector, the crown prince added. The government has also implemented a number major projects in vital sectors and launched activities that will help to achieve economic growth goals and create job opportunities, he said.

Crown Prince Mohammed stressed the importance of engaging with the private sector as a major and vital partner for the development of the Kingdom. He also noted the continuing program of reforms by the government designed to develop the business sector and create an attractive environment for investors to contribute to economic growth. This has helped to greatly boost the Kingdom’s ranking on international indexes that measure competitiveness and ease of doing business, he added.

“We aim to create an attractive investment environment that contributes to directing the national economy toward broad prospects of diversification, growth and prosperity,” the crown prince said. “The government will continue to move forward with implementing the stages of economic transformation and will progress with diversifying the economy’s productive base while maintaining financial sustainability and providing wider opportunities for a better future for the current and future generations.”

He stated that the government has a clear vision, fixed goals and explicit plans, and is working on implementing them while maintaining financial and economic stability as an essential pillar of sustainable economic growth.

“Financial and economic results and indicators confirm that we are progressing positively,” he said. “We constantly review and update the policies, procedures and programs implemented to ensure their effectiveness and to rectify their course whenever the need arises, in order to achieve the goals of the Kingdom’s Vision 2030, taking into account the global financial and economic conditions and what is in the interest of our homeland and citizens.”

The 2020 Saudi budget has been prepared in light of a global economic atmosphere characterized by challenges, risks and protectionist policies, said Crown Prince Mohammed, which require flexibility in the management of public finances and strengthening the ability of the economy to face the challenges and risks.

“We aim, through this budget, to benefit from the programs that were achieved and rely on them to maintain a balance between economic growth and the sustainable financial stability that guarantees this growth,” he said.

The crown prince noted that financial-control policies and the development of public financial management and its efficiency have contributed to the continued reduction of the budget deficit. This is expected to fall to about 4.7 percent of GDP in 2019, compared with 5.9 percent in 2018 and 9.3 percent in 2017. This confirms the success of ongoing efforts to ensure financial sustainability, and progress in implementing projects to improve the private sector, he added.

He also confirmed that the 2020 budget continues to support programs that contribute to achieving Vision 2030. This includes the financing of major projects, helping to develop medium, small and micro enterprises, and supporting entrepreneurs. These are some of the most important engines for economic growth, which will help to diversify the economy and open up new fields for investment and employment, he added

The budget includes reviews of some of these programs and schedules to ensure they reach their goals, Crown Prince Mohammed said, and the continued development and modernization of government infrastructure and services. He also stressed the government’s focus on improving the efficiency and quality of spending, to make the best use of state resources to achieve the highest possible social and economic income.

He highlighted the recent launch of oil company Saudi Aramco as a major step forward for the Kingdom, and his support for enhancing the role and participation of the private sector in the nation’s economy. He noted that opportunities for the private sector will continue to increase, enhancing its role in the growth and diversification of the economy and in creating job opportunities in the medium and long terms.

The crown prince also pointed out the part played by the Public Investment Fund and the National Development Fund in achieving Vision 2030, as the local and external investment mechanisms and the growth arm of the local economy, which are also contributing to the diversification of the economy and income sources. These are among the most important strategic goals of Vision 2030, he said.