SABIC shares are among the most significant investment tools monitored by those interested in the Saudi stock market, given the stature of the Saudi Basic Industries Corporation (SABIC) as one of the largest industrial companies in the Kingdom and the region. Established in 1976, SABIC has become a global leader in the petrochemical sector, supported by its substantial market share and diverse product lines, which include petrochemicals, fertilizers, plastics, and advanced materials. In light of the changes witnessed in the global petrochemical market during 2024 and 2025, the importance of monitoring SABIC's performance and analyzing its financial and strategic developments has become evident, especially with the company executing strategic asset sales and facing significant financial losses. This article provides an objective and accurate overview of the latest financial data, analyzes the company's key trends, and addresses frequently asked questions about SABIC shares, highlighting the risks and opportunities associated with its stock in the Saudi financial market. This article does not provide any investment recommendations but aims to offer a comprehensive knowledge background to help understand the dynamics of SABIC shares and their role in the local and global economy.
Overview of SABIC and Its Role in the Saudi Economy
The Saudi Basic Industries Corporation (SABIC) occupies a pivotal position in the Saudi economy, representing a model of industrial success and national transformation since its establishment in 1976. SABIC was founded by a government decision to develop manufacturing industries and reduce reliance on crude oil exports, helping the Kingdom build a solid industrial base. Today, the company manages massive operations that include the production of petrochemicals, fertilizers, plastics, and advanced materials, exporting its products to over 100 countries. SABIC's strategic role is further enhanced by its affiliation with Saudi Aramco, which owns 70% of its shares, providing it with financial support and a future vision aligned with national development plans. SABIC is also a key player in achieving the goals of Saudi Vision 2030, particularly in the areas of economic diversification and environmental sustainability.
SABIC Shares Development in the Saudi Financial Market
SABIC shares are listed on the Saudi stock market (Tadawul) under the symbol 2010 and have become one of the most traded stocks in the market. SABIC has always represented a significant weight within the TASI index and the basic materials sector index due to its size and high market value. The price of SABIC shares has experienced notable fluctuations in recent years, reaching high levels in 2022, then declining significantly in 2024 and 2025 due to falling global petrochemical prices and increased financial pressures on the company. Nevertheless, SABIC shares maintain their attractiveness to institutional and individual investors seeking exposure to the vital basic industries sector in the Kingdom.
Shareholding Structure and SABIC's Relationship with Saudi Aramco
Since Saudi Aramco acquired 70% of SABIC shares in 2020, the company's shareholding structure has changed significantly. Aramco has become the most important financial and strategic supporter, enhancing SABIC's ability to navigate challenging market cycles and expand its investments both locally and internationally. In addition to Aramco, the Public Investment Fund and other government entities hold stakes in the company, along with contributions from individuals and institutions both within and outside the Kingdom. This diverse structure provides additional confidence to investors, as SABIC is viewed as a company with strong institutional support and relative stability amid market fluctuations.
Key Financial Data and Indicators for SABIC Shares (2024-2025)
Recent financial indicators reflect the challenges SABIC faced in 2024 and 2025. The share price in January 2026 was approximately SAR 52.70, while the market capitalization reached about SAR 158.1 billion, placing it among the top five companies in the Saudi market. The company recorded operating losses of SAR 5.28 billion during the first nine months of 2025 due to declining product margins and the sale of certain assets. Dividend distributions were absent throughout most of 2025, while the price-to-earnings ratio remained undefined due to accounting losses. Management adopted policies to enhance equity, such as transferring reserves to retained earnings, in an attempt to strengthen the financial position in anticipation of future profit margin improvements.
Analysis of the Petrochemical Sector and Its Impact on SABIC Shares
The petrochemical sector acts as the beating heart of the Saudi economy, with SABIC playing a leading role in it. The performance of SABIC shares is heavily dependent on the dynamics of this sector, which is influenced by factors such as global oil prices, industrial demand, and changes in the international economy. In recent years, the sector has suffered from oversupply and slowing global demand, particularly with the downturn in the Chinese economy and increased competition from Asian and European companies. Nevertheless, SABIC still enjoys a competitive advantage due to its integration with Aramco and the low cost of raw materials in the Kingdom. The company aims to overcome current pressures by focusing on local projects and expanding investments in advanced materials and renewable energy.
Strategic Developments and Asset Restructuring at SABIC
Recently, significant strategic transformations have occurred at SABIC, as it announced the sale of its assets in the U.S. and Europe to a French investment company for SAR 18.3 billion, aiming to restructure its portfolio and focus on more profitable local projects. The completion of the deal is expected by late 2026, and the company is anticipated to record non-cash accounting losses of approximately SAR 10.8 billion due to this process. This step is part of senior management's efforts to strengthen the company's financial position, reduce debt, and direct investments toward promising sectors such as the Namma refinery and advanced energy. Recent moves reflect SABIC's desire to adapt to global changes and continue sustainable growth.
SABIC's Dividend Policy: Reality and Future
Traditionally, SABIC has been known for its conservative dividend policy, distributing generous semi-annual or annual dividends to shareholders. However, the challenging financial conditions in 2024 and 2025 prompted the company to temporarily suspend distributions, focusing on rebuilding capital and supporting the balance sheet. The resumption of dividend distributions in the future will depend on SABIC's ability to return to profitability and achieve strong cash flows. Investors often monitor the company's quarterly results and financial policies before anticipating the return of distributions, as they are linked to the stability of profit margins and the sustainability of financial performance in the medium term.
Legal and Financial Challenges and Their Impact on SABIC Shares
Recently, SABIC has faced legal and financial challenges, most notably a lawsuit filed against it in London by Tawariq Investment concerning the Fabrique project. This has led to multiple retrials, with the potential for the final ruling to impact the company's financial position. Additionally, non-cash losses resulting from asset sales have put pressure on equity and the balance sheet. These challenges reflect the importance of effective management of legal and financial risks and the need to monitor developments in cases that may affect the future performance of SABIC shares.
SABIC Shares Performance Compared to Competitors in Local and Global Markets
Despite its leading position in the Saudi market, SABIC faces strong competition from major global companies such as Dow Chemical, ExxonMobil, Sinopec, and Reliance. In the local market, there is no competitor of SABIC's size, but some companies like Sipchem and thermal cracking activities contribute to the sector's dynamics. Internationally, the competitiveness of SABIC shares depends on its ability to manage costs, diversify products, and expand export markets. Moreover, its partnership with Aramco provides it with a relative advantage in facing fluctuations in oil prices and production costs compared to global competitors.
The Role of SABIC Shares in Achieving Saudi Vision 2030
SABIC is a key partner in achieving the goals of Saudi Vision 2030, particularly regarding economic diversification and the development of advanced industries. The company participates in strategic projects such as the Namma refinery, hydroponics, and the development of advanced materials like carbon fibers and green hydrogen. These initiatives enhance SABIC's position as a leading industrial company and support the environmental and economic sustainability of the Kingdom. SABIC shares are viewed as a tool to benefit from major transformations in the national economy, especially with the shift towards renewable energy and future industries.
Impact of Global Economic Conditions on SABIC Shares
SABIC shares are directly affected by global economic cycles, as the company relies on global demand for petrochemicals, fertilizers, and industrial materials. The slowdown in economic activity in China and Europe during 2024 led to a decline in product prices and profit margins. Additionally, fluctuations in global oil prices play a pivotal role in determining production costs and the company's profits. Conversely, global economic recovery provides opportunities for improved demand and increased profits. Therefore, monitoring international economic developments remains a crucial element in evaluating the performance of SABIC shares and anticipating future growth opportunities.
Transformation and Innovation Strategies at SABIC
SABIC aims to enhance its competitiveness through innovation and the adoption of digital and technological transformation strategies. The company focuses on developing advanced products and solutions in renewable energy, smart materials, and sustainable agriculture. Research and development projects represent a pivotal part of its strategy, as they work to enhance the value of its products and reduce reliance on traditional oil-based products. SABIC also strengthens its partnerships with research institutions and global technology companies to support the transition to a more sustainable and resilient economy.
How to Evaluate SABIC Shares from an Investor's Perspective
Evaluating SABIC shares depends on several financial and strategic indicators, including market capitalization, operational performance, cash flows, and the company's position in the sector. Given the current accounting losses, investors may resort to using multiples such as book value or cash flow instead of the traditional price-to-earnings ratio. Investors also consider the company's future strategy, its ability to diversify income sources, and the general trends in the petrochemical sector. It is essential to study the company's quarterly results and legal developments before making any investment decisions.
Conclusion
SABIC shares are fundamental pillars of the Saudi stock market, reflecting the company's journey through economic and industrial transformations in the Kingdom. Despite the financial, legal, and sectoral challenges the company has faced in recent years, SABIC still enjoys strong institutional support and a clear strategic vision towards transformation and innovation. Through asset restructuring and a focus on local projects and advanced sectors, the company seeks to restore profit margins and enhance its position in both local and global markets. The SIGMIX platform provides users with analytical resources and up-to-date data to help them track developments in SABIC shares and better understand their dynamics. As with all investments, it is always recommended to consult a licensed financial advisor before making any investment decisions to ensure alignment with developments and achieve your financial goals safely.
Frequently Asked Questions
SABIC shares are listed on the Saudi Tadawul market under the symbol 2010. According to recent data, the company's market capitalization is approximately SAR 158.1 billion, making it one of the largest companies in the market. The market value fluctuates based on the share price and the number of outstanding shares, and it is advisable to monitor official sources for continuous updates.
SABIC shares experienced notable fluctuations during 2024 and 2025, declining from high levels at the beginning of 2024 to around SAR 52.70 in January 2026. This decline was due to falling global petrochemical prices, the sale of strategic assets, and the company recording losses in recent periods. The performance of the shares reflects the state of the sector and its sensitivity to global economic changes.
SABIC was known for its regular semi-annual or annual cash dividend distributions. However, due to the losses recorded in 2024 and 2025, the company temporarily suspended dividend distributions to focus on rebuilding capital and supporting its financial position. The return of distributions in the future will depend on the company's ability to regain profitability and stabilize cash flows.
SABIC's recent losses are attributed to several factors, primarily the decline in global petrochemical prices, increased competition from Asian and European companies, and the impact of selling major assets in the U.S. and Europe, which resulted in recording non-cash accounting losses. Additionally, global economic challenges have led to reduced demand for the company's core products.
SABIC's operations include basic petrochemicals (ethylene, polyethylene, polypropylene), plastics, nitrogen fertilizers, advanced materials (carbon fibers, engineering polymers), as well as construction and renewable energy solutions. These products contribute to various manufacturing industries both within the Kingdom and abroad.
SABIC shares are significantly affected by global economic cycles, as demand for petrochemicals and industrial products fluctuates with the growth or slowdown of the global economy. A decline in oil prices or a slowdown in the Chinese and European economies typically leads to reduced profit margins for SABIC, while economic recovery supports increased demand and profits.
SABIC's current strategy focuses on asset restructuring, selling unprofitable activities, enhancing local projects, and investing in promising sectors such as renewable energy and advanced materials. The company also aims to reduce debt and improve operational efficiency to ensure financial recovery in the medium term.
SABIC shares play a pivotal role in achieving the goals of Saudi Vision 2030 by contributing to economic diversification, developing advanced industries, and investing in renewable energy and smart materials projects. The company aims to lead industrial innovation in the Kingdom and enhance its regional and global position within strategic sectors.
In light of accounting losses, the price-to-earnings (P/E) ratio may not be a suitable indicator. Investors can turn to other metrics such as book value, cash flow, and analysis of the company's future strategy. Regulatory bodies also advise studying financial performance and monitoring the company's quarterly results before making any decisions.
SABIC is currently facing legal challenges, notably the dispute over the Fabrique project in London. The outcomes of these lawsuits could impact the company's financial position if ruled against it. It is important to monitor legal developments and their potential impact when analyzing the future of SABIC shares.
SABIC competes with major global companies such as Dow Chemical, ExxonMobil, Sinopec, and Reliance. In the local market, SABIC is the largest by size, while smaller companies like Sipchem and thermal cracking activities contribute to the sector's dynamics. Competitiveness relies on cost management, product quality, and market expansion.
The latest news and data on SABIC shares are available through the official website of the Saudi financial market (Tadawul), as well as analytical platforms like Argaam and specialized stock analysis programs. It is always advisable to rely on official and credible sources to track developments.