sabic share price: In-depth Analysis of SABIC Stock in Saudi Market

SABIC (Saudi Basic Industries Corporation) is one of the leading industrial companies in the Kingdom of Saudi Arabia and the region, established in 1976 with an ambitious vision to make the Kingdom a global hub for petrochemical production. SABIC operates in various fields including chemicals, petrochemicals, plastics, fertilizers, and metals, providing it with revenue diversification and making it a strategic player in the Saudi economy.

SABIC is the second largest company listed on the Saudi financial market (Tadawul) after Aramco in terms of market capitalization, playing a key role in supporting the overall market index (TASI). The company relies on the availability of oil and natural gas in the Kingdom for its production, giving it a competitive cost advantage compared to its global competitors. The company actively contributes to achieving the goals of Saudi Vision 2030 through its industrial projects, expansions domestically and internationally, research and development programs, and environmental sustainability.

SABIC's stock is one of the leading stocks that interest both local and foreign investors, characterized by high liquidity and significant daily trading activity. The stock price movements are closely linked to the company's business results, economic policies, and raw material prices, making it a general indicator of the health of the Saudi industrial sector.

The term sabic share price refers to the price at which SABIC's stock is traded on the Saudi financial market (Tadawul), under the symbol 2010. The stock price is determined based on supply and demand forces in the market during official trading sessions, changing instantaneously according to executed trades and buy and sell orders.

The pricing process for SABIC's stock, like all stocks listed on Tadawul, relies on an advanced electronic system that ensures transparency and fairness for all investors. The Tadawul website publishes real-time and historical prices of the stock, along with key financial indicators such as market capitalization, price-to-earnings ratio, and distribution ratios.

SABIC's stock price is influenced by several factors, including the company's quarterly and annual financial results, global market news, oil and gas prices, government policies, and local and global economic developments. Investors can track stock movements through official platforms and periodic reports issued by the company and the Capital Market Authority.

The sabic share price experienced notable fluctuations during 2024 and 2025 due to changes in the global and local economic landscape. According to Tadawul data, the stock price ranged between 80 and 130 Saudi Riyals during this period. At the beginning of 2024, the stock price was around 100 Riyals, gradually rising in the first quarter to about 120 Riyals due to rising oil prices and improved company results.

In the second and third quarters of 2024, the stock underwent a correction due to declining global demand for petrochemicals and a slowdown in the Chinese and European economies, dropping to levels between 85 and 90 Riyals. However, the end of 2024 saw a gradual recovery of the stock, closing the year at an average of 110 Riyals per share. At the beginning of 2025, the stock stabilized in the range of 100–105 Riyals, then returned to a slight increase mid-year with improved oil prices and the expansion of SABIC's international projects, reaching an average of 115 Riyals.

These movements reflect the sensitivity of SABIC's stock to global economic changes, the market's reaction to quarterly business results, government policies, and company expansion news. It is important for investors to understand that price fluctuations are a natural part of the movement of leading stocks in financial markets.

Investors monitor several financial indicators to evaluate the sabic share price, the most important of which are:

- Stock Price: Ranged between 80 and 130 Riyals in 2024–2025, averaging around 115 Riyals by mid-2025.
- Market Capitalization: Reached approximately 387 billion Saudi Riyals by mid-2025, reflecting the company's size and strength in the market.
- Price-to-Earnings Ratio (P/E Ratio): Stabilized at 8–10 times in 2024–2025, a ratio considered moderate for the petrochemical sector.
- Dividends: The company announced total dividends of approximately 3.4 Riyals per share in 2024, with an annual distribution yield of about 3% based on the stock price.

These indicators reflect the company's strong operational performance, attractive distribution policy, and relative stability in profitability despite cyclical fluctuations in oil and petrochemical product prices.

SABIC's stock price is subject to multiple influences at both local and global levels:

1. Oil and Gas Prices: As key raw materials in petrochemical production, fluctuations in oil prices directly impact SABIC's profitability and stock price. Rising oil prices often lead to improved profit margins and increased stock attractiveness.
2. Quarterly Business Results: The company announces its results periodically, and any improvement or decline in net profits or revenues quickly reflects on the stock price.
3. Global Demand for Chemical Products: Changes in European and Asian markets affect SABIC's exports and market share.
4. Government Policies and Initiatives: Government support, Vision 2030 projects, and industrial development trends provide positive or negative signals that translate into stock performance.
5. Geopolitical Changes: Events such as tensions in energy markets, trade agreements, or global crises can cause fluctuations in leading stock prices, including SABIC.
6. Global Competition: The performance of global companies in the sector also determines SABIC's market attractiveness.

SABIC places great importance on its dividend distribution policy, announcing regular quarterly cash distributions, which are a major attraction for long-term investors. In 2024, total distributions amounted to approximately 3.4 Riyals per share (averaging 0.8–1.1 Riyals per quarter), representing an annual distribution yield of about 3% based on the stock price during that period.

The regular distribution policy reflects the company's financial stability and confidence in achieving sustainable profits, providing investors with periodic income that enhances the stock's attractiveness. Additionally, the continuation of distributions, even during periods of volatility, signals strong cash flows and the company's ability to withstand economic shocks. It is important for investors to review quarterly and annual reports to know the announcement, entitlement, and payment dates, as these factors affect stock movements during specific periods.

The petrochemical sector is one of the strategic sectors in the Kingdom of Saudi Arabia, benefiting from an abundance of raw materials and low costs. SABIC holds a leading position in this sector locally and competes with global companies such as Dow, BASF, Sinopec, and Reliance. SABIC is distinguished by its vertical integration, technological advancement, and focus on innovation and sustainability.

Despite having few direct local competitors, the global market is experiencing strong competition due to price fluctuations and the emergence of new players from Asia and India. In the Kingdom, SABIC sometimes integrates with companies from adjacent sectors such as cement companies (e.g., Hail Cement – symbol 3001), where the demand for industrial materials intersects in major construction projects. Saudi Vision 2030 supports the petrochemical sector through massive developmental projects, providing continuous growth opportunities for leading companies like SABIC.

The comparison between SABIC and other listed companies such as Hail Cement (symbol: 3001) shows significant differences in size, sector, and impact on the overall index. SABIC is a giant company with a market capitalization of approximately 387 billion Riyals, while cement companies like Hail Cement have a market capitalization in the range of only a few billion.

In terms of activity, SABIC focuses on high-value-added chemical and plastic products, while cement companies focus on producing basic building materials. The performance of cement companies affects the construction and building sector in the Kingdom, while SABIC's performance impacts the industrial sector as a whole. Despite the differences in sectors, the demand for products from both companies is influenced by major national projects, where a recovery in the construction sector leads to increased demand for both cement and chemicals.

The performance of Hail Cement's stock (symbol: 3001) can be tracked through its official page on Tadawul: [/stocks/3001/].

In recent years, several important developments have occurred regarding SABIC stock:

- Strong Financial Results in Some Periods: The company reported relatively high profits in the second quarter of 2024 and the first quarter of 2025, supported by improved oil prices and increased demand for industrial products.
- Expansion Projects: SABIC signed strategic agreements with Indian and European companies to build new factories and enhance its global presence, in addition to investments in research, development, and green technologies.
- Regular Dividend Announcements: The company continued to announce attractive quarterly dividends, boosting investor confidence in the stability of its distribution policy.
- Regulatory Updates: The Capital Market Authority continued to monitor transparency and disclosure, with new facilitation measures for foreign investors.
- Interaction with Oil Policies: SABIC benefited from OPEC+ decisions to cut production, which led to rising oil prices and enhanced sector profitability.

These developments confirm SABIC's continued leadership in the Saudi industrial sector, focusing on diversifying activities and achieving financial sustainability.

SABIC is committed to the highest standards of transparency and disclosure, publishing its financial results and quarterly and annual reports on scheduled dates in accordance with the requirements of the Saudi Capital Market Authority. This information allows investors to monitor the company's performance and analyze the factors affecting the stock price.

Transparency enhances investor confidence and supports stock price stability, enabling them to make investment decisions based on accurate and objective data. Additionally, disclosure of dividends, new projects, and regulatory developments allows the market to absorb impacts in a balanced manner and prevents unjustified speculation. Transparency is a fundamental pillar in mature financial markets, and SABIC continuously strives to enhance it in cooperation with regulatory authorities.

Investors and followers can view the sabic share price directly through the Tadawul website, where real-time and historical prices are available, along with financial statements and key performance ratios. The company also publishes its quarterly and annual reports through its official website and financial media channels such as "Argaam," "Al-Eqtisadiya," and "Mubasher."

It is important to rely on official and trustworthy sources when analyzing stock performance and to avoid rumors or unverified news. Official financial data provides information on revenues, profits, dividends, and profitability indicators, helping to form a comprehensive picture of the company's financial and operational status. However, caution should be exercised, and investment decisions should not be made without consulting a licensed specialist.

SABIC's stock is considered a key indicator of the health of the Saudi industrial sector and the economy in general, given its size and importance among leading companies in the market. Stock price movements often react to major economic events, government policies, and changes in oil prices, granting it the status of a "confidence gauge" in the Saudi industry.

When the stock performs positively, it is viewed as an indicator of the robustness of the petrochemical sector and the success of the Kingdom's policies in diversifying the economy. Conversely, if the price declines, it may reflect challenges in global markets or pressures on profit margins. Therefore, analysts and investors monitor the sabic share price alongside other indicators to assess the overall performance of the Saudi industrial sector.

SABIC, like other major global companies, faces several future challenges that may impact its stock price, including:

- Oil Price Volatility: Sharp declines in oil prices can lead to reduced profit margins and earnings growth.
- Increasing Global Competition: The entry of new Asian and Indian companies into the market may pressure SABIC's market shares.
- Environmental Regulations: Rising environmental standards and increased compliance costs may affect sector profitability in the long term.
- Changes in Global Demand: Any economic slowdown in major markets like China and Europe may reduce demand for SABIC's products.

Despite this, the company continues to focus on innovation, expanding production capacity, diversifying products, and investing in green technologies, enhancing its ability to face challenges and achieve sustainable growth in the future.