SABIC stock is one of the most traded and attention-grabbing stocks in the Saudi financial market (Tadawul), representing a cornerstone in the petrochemical and basic materials sector. Since the establishment of SABIC in 1976, it has achieved a leading position not only within the Kingdom but also in global markets, thanks to its diverse product offerings and expansion strategies. The importance of SABIC stock is evident through its significant impact on the Saudi market index (TASI) and its massive market value, which consistently places it at the forefront of listed companies. In this detailed guide, we explore the key aspects of SABIC stock in terms of financial performance, distribution policies, influencing factors, and the latest developments during 2024 and 2025. We also highlight the company's position within its sector and compare it with major local and global competitors, providing readers with a comprehensive background to understand the nature of the stock and the market dynamics related to it. With the growing interest of individual and institutional investors in 'SABIC stock,' there is a need to understand the influencing factors on its fluctuations and financial indicators, as well as to grasp the company's role in the national economy and its future plans. This article aims to provide interested parties with a clear and objective view, without offering any investment recommendations, while emphasizing the importance of consulting a licensed financial advisor before making any financial decisions.
What is SABIC Stock? Definition and Position in the Saudi Market
SABIC stock is the symbol that represents the Saudi Basic Industries Corporation (SABIC) in the Saudi financial market (Tadawul), with the trading symbol 2010. Established in 1976, the company is considered the largest petrochemical company in the region and one of the pillars of the Saudi national economy. The Saudi government, through Aramco, holds the majority stake in the company, which is characterized by its diverse product offerings in petrochemicals, plastics, metals, fertilizers, and services related to chemical production. SABIC stock has a significant weight in market indices (TASI) and is often seen as a benchmark for the movement of the basic materials and chemicals sector, regarded as one of the leading stocks with high liquidity and attractiveness to both institutional and individual investors.
Recent Financial Performance of SABIC Stock (2024 – 2025)
According to official data published on Tadawul, SABIC achieved strong performance during 2024 and 2025 due to the recovery in oil prices and increased global demand, particularly from Asian markets. The results for the first half of 2025 showed a rise in revenues compared to the same period in 2024. The price of SABIC stock at the end of the session on August 3, 2025, was approximately 54 SAR per share, down 1.65% after the announcement of results, while the price fluctuated between 50 and 60 SAR during the year. The company's market capitalization ranged between 750 to 900 billion SAR (equivalent to 200–250 billion USD), placing it among the largest companies in the market. The price-to-earnings (P/E) ratio, which ranges between 8 and 15, reflects the company's competitiveness in the sector. These financial results demonstrate how SABIC stock is influenced by global and local economic factors and highlight its financial strength and relative stability compared to its peers.
Dividend Distribution Policy and Its Implications for Investors
SABIC follows a generous and regular dividend distribution policy, with total annual cash distributions in recent years exceeding 4 SAR per share, typically distributed in two annual payments. This yield represents a percentage ranging between 4% and 6% of the stock price, making SABIC stock attractive to shareholders seeking regular income. This policy is based on the strength of cash flows and recurring profits generated by the company even during periods of market fluctuations. Stability in distributions is an indicator of robust financial performance and management's commitment to rewarding shareholders while balancing cash returns with funding future expansion plans.
Analysis of the Price-to-Earnings (P/E) Ratio of SABIC Stock
The price-to-earnings ratio is one of the most important indicators used in stock valuation, calculated by dividing the market price of the stock by its annual earnings per share. In the case of SABIC, the P/E ratio typically ranges between 8 and 15, depending on economic conditions and oil prices. A decrease in the P/E ratio often indicates a relatively attractive valuation, while an increase may reflect future growth expectations or pressures on earnings. Compared to global companies in the petrochemical sector, SABIC enjoys a competitive P/E ratio, supported by significant revenue stability and a strong financial position. It is important to monitor this indicator alongside the company's quarterly results and changes in oil prices to assess the stock's attractiveness from a financial valuation perspective.
The Petrochemical Sector and SABIC's Leading Role
SABIC stock belongs to the basic materials sector, particularly petrochemicals, which is one of the largest and most influential sectors in the Saudi market. This sector is directly affected by global oil prices and industrial demand, as SABIC's products are used in various industries such as plastics, fertilizers, and metals. Locally, SABIC stands out as a sector leader due to its production volume and product diversity, while facing competition from companies like Ma'aden and some regional firms. Globally, SABIC competes with major companies such as Sinopec, Bayer, and DuPont. Continuous expansion and modernization strategies give SABIC a competitive edge, while its strong ties with Saudi Aramco provide additional stability.
Factors Affecting the Price of SABIC Stock
The price of SABIC stock is influenced by several internal and external factors. Internally, the company's quarterly results, distribution policies, expansion plans, and sustainability initiatives play a pivotal role. Externally, the stock's movement heavily depends on crude oil prices, global demand for petrochemicals, and developments in global financial markets. Additionally, Saudi government policies, particularly the Vision 2030 projects, impact growth and expansion opportunities. Currency exchange rate fluctuations, especially the US dollar, also affect the company's profitability due to its significant reliance on dollar-denominated exports.
Local and International Competitors of SABIC
SABIC faces local competition from companies like Ma'aden and specialized chemical companies such as City Chemicals and East Jeddah. Nevertheless, SABIC's size, diversity of activities, and influence in both local and international markets far exceed that of its local competitors. Internationally, SABIC competes with giants like Sinopec (China), Bayer (Germany), and DuPont (USA). This competition drives the company to innovate and expand its product lines, focusing on sustainable industries and green transformation, which adds an additional element of distinction in facing global challenges.
Impact of Oil Prices on SABIC Stock Performance
SABIC's financial results and stock price are closely linked to global oil prices, as the petrochemical industry primarily relies on oil and gas as raw materials. Rising oil prices typically lead to increased costs, but at the same time, they raise the prices of final products if global demand is strong. In cases of declining oil prices, the company benefits from lower costs, but this may be accompanied by a drop in petrochemical product prices. Therefore, monitoring oil price movements is one of the most critical factors when studying SABIC stock, alongside observing developments in global energy markets.
The Impact of Mergers and Acquisitions in the Saudi Market on SABIC's Sector
The Saudi market has witnessed several mergers and acquisitions in recent years, the most notable being Aramco's acquisition of a majority stake in SABIC in 2020. This deal enhanced the integration between the oil and petrochemical sectors and added further stability to SABIC stock. In the cement sector, deals such as the merger of Hail Cement (symbol 3001, /stocks/3001/) with Qassim Cement have reflected on the competitive structure of the sector and opened additional opportunities for SABIC in the construction-related products market. The importance of these deals lies in enhancing efficiency and expanding the customer base, positively impacting the performance of major companies like SABIC in the long term.
SABIC's Strategy in Innovation and Sustainability
SABIC places significant importance on innovation and sustainability within its expansion strategy, having launched projects and partnerships to produce recycled polymers and adopt clean energy technologies. In 2024, the company entered into partnerships with global firms to develop environmentally friendly products and reduce carbon emissions from its factories. These initiatives not only enhance the company's image but also increase its competitiveness in global markets that have become more sensitive to environmental issues. Investing in innovation represents a lever for future growth and helps SABIC meet the increasing regulatory demands in international markets.
Institutional Ownership and Its Impact on Stock Stability
SABIC has a strong institutional ownership base, with Saudi Aramco holding over 70% of the shares, while the remaining stake is distributed among local and foreign investment institutions and individuals. This ownership structure provides high stability to the stock, as strategic decisions are linked to the parent company and government support. Additionally, the limited free float supports liquidity and reduces sudden price fluctuations, making SABIC stock a preferred choice for investors seeking stability and relative safety in the market.
Latest News and Developments and Their Impact on SABIC Stock
The years 2024 and 2025 witnessed numerous impactful news regarding SABIC stock, including the announcement of strong financial results in the first half of 2025, the launch of sustainability technology initiatives, and the entry into new industrial partnerships. Developments related to mergers in the industrial sector have also expanded SABIC's opportunities to meet the demands of the construction sector. The interaction with this news is clearly reflected in the stock's movement and trading volumes, with an increase in investment activity following positive announcements, while the stock remains within relatively stable price ranges.
Factors to Monitor When Following SABIC Stock
It is essential to monitor a range of influencing factors when following SABIC stock, including: quarterly and annual financial results, global oil prices, expansion and modernization projects, supportive government policies, and exchange rates (as the company's revenues heavily depend on the dollar). Additionally, global economic indicators and demand trends in Asian and European markets play a role in shaping investor expectations regarding the stock. Regularly monitoring these elements helps create a comprehensive picture of the risks and opportunities related to SABIC stock.
SABIC Stock within Saudi Vision 2030
SABIC plays a strategic role in achieving the goals of Saudi Vision 2030, particularly in diversifying the economy and enhancing non-oil exports. Through expansion projects in manufacturing industries and investment in clean technologies, the company contributes to developing the national industrial base and creating job opportunities. Moreover, the shift towards increasing local content in industrial value chains provides SABIC with additional growth opportunities and strengthens its position as a key partner in the Kingdom's economic development.
Conclusion
SABIC stock represents a prominent example of leading stocks in the Saudi market, thanks to its financial strength and pivotal position in the petrochemical sector. The stock stands out as a preferred choice for investors seeking stability and sustainable returns, benefiting from strong government support and a clear expansion and innovation strategy. However, SABIC stock is exposed to various external factors such as oil prices and global economic conditions, necessitating continuous monitoring. On the SIGMIX platform, we emphasize the importance of staying updated with official data and recent reports, and not making any investment decisions without consulting a licensed financial advisor to ensure achieving financial goals in a well-considered and secure manner.
Frequently Asked Questions
SABIC's main activities involve the manufacturing and supply of petrochemicals, plastics, metals, and fertilizers. This diversity reflects on SABIC stock performance through strong cash flows, positively affecting the stock's liquidity and attractiveness in the market, especially with significant reliance on exports and global markets.
SABIC stock experienced fluctuations between strong increases in 2024, supported by rising company profits and increased demand, followed by a price correction at the beginning of 2025 and then a return to improvement with the announcement of positive financial results. The average stock price in the first half of 2025 was around 54 SAR, with relative stability in market capitalization.
SABIC's market capitalization, ranging between 750 and 900 billion SAR, reflects the company's size and weight in the Saudi market. It provides additional confidence to investors and determines the stock's weight in key indices, as well as granting the company high financing capacity to support expansion and investment plans.
SABIC follows a regular and generous dividend distribution policy, often exceeding 4 SAR annually per share. Dividends are distributed in two payments, providing an attractive cash yield for shareholders and reflecting stable cash flows and the company's strong financial position.
The price-to-earnings ratio is an important indicator for stock valuation, reflecting the relationship between the stock price and its earnings. In SABIC, the P/E ratio ranges between 8 and 15, indicating the stock's attractiveness compared to its competitors, especially during profit growth periods. A lower P/E may signal good valuation opportunities, and vice versa.
The largest shareholder in SABIC is Saudi Aramco, which owns over 70% of the shares following the acquisition deal in 2020. The remaining stake is distributed among local and international investment institutions and individuals, providing stability to the stock and enhancing its market strength.
Oil prices directly affect SABIC stock results, as oil and gas are primary raw materials in the petrochemical industry. Rising prices increase costs and sometimes revenues, while declines lower costs but may reduce revenues from final products depending on global demand.
Key elements to monitor include quarterly financial results, oil prices, expansion projects, government policies, and exchange rates. Additionally, global market developments and sustainability innovations significantly impact future performance expectations for SABIC stock.
SABIC actively invests in innovation by developing environmentally friendly technologies and producing recycled polymers, in addition to reducing carbon emissions in its factories. These initiatives enhance the company's competitiveness and align with global trends towards sustainability.
Mergers in the cement sector, such as the Hail Cement (symbol 3001) deal, indirectly affect SABIC by increasing demand for chemical products used in construction. These deals also enhance the efficiency of the local industrial sector, creating additional growth opportunities for SABIC.
SABIC stock is considered a benchmark due to its large size, diverse activities, leading role in the basic materials sector, and strong influence on the market index (TASI). The stock's performance is often used as a health indicator for the Saudi industrial economy.