The stock of Saudi Basic Industries Corporation – known as sabic stock – is one of the most attractive stocks for investors in the Saudi financial market, due to its leading role in the petrochemicals and chemicals sector both locally and globally. Since its establishment in 1976 and its listing on the Saudi stock market (Tadawul) under the symbol 2010, SABIC has evolved to become the second-largest listed company in the Saudi market after Aramco in terms of market capitalization, representing one of the pillars of Saudi Vision 2030 to diversify the national economy. The performance of sabic stock has recently witnessed significant fluctuations due to changes in global oil prices, making the stock a focal point for observers and financial analysts eager to understand the dynamics of the Saudi industrial markets. In this article, we will provide a comprehensive analysis of sabic stock, focusing on financial performance, dividends, sector status and competition, as well as the latest developments and future strategies of the company. We will also clarify the relationship between SABIC shares and other industrial sectors such as cement, and address the most common questions regarding investment in this vital stock. This article aims to provide the reader with a balanced and objective view of SABIC shares, emphasizing the importance of consulting a licensed financial advisor before making any investment decision.
Overview of SABIC and Its Role in the National Economy
Saudi Basic Industries Corporation (SABIC) was established in 1976, forming the cornerstone of the Kingdom's efforts to build an integrated industrial sector based on the exploitation of oil and gas resources. SABIC has developed into a global industrial powerhouse in the production of petrochemicals, plastics, agricultural chemicals, and intermediate products. The company's headquarters is located in Riyadh, and it has a wide presence in global markets through branches and partnerships in Asia, Europe, and the Americas.
SABIC is one of the key drivers of the Kingdom's strategy to diversify income sources and reduce reliance on traditional oil revenues. In 2020, it strengthened its strategic position after Saudi Aramco acquired 70% of its shares, adding an integrative dimension to the value chain from oil extraction to manufacturing industries.
Organizationally, SABIC is the second-largest listed company in the Saudi market with a market capitalization of approximately 375 billion SAR at its peak, playing an important role in attracting local and foreign capital to the Saudi stock market (Tadawul).
SABIC Stock in the Saudi Stock Market (Symbol: 2010)
SABIC shares are listed on the Saudi financial market under the symbol 2010, and are among the most traded stocks in terms of liquidity and number of transactions. The stock attracts interest from a wide range of institutional and individual investors, due to market confidence in the company's position and financial strength.
The performance of SABIC shares is influenced by several key factors, most notably global oil prices, industrial demand for petrochemical products, and government trends to support the industrial sector. During periods of rising oil prices, the stock benefited from improved profit margins, while facing pressures during periods of declining prices or weak global demand.
The fluctuations in the price of SABIC shares reflect changes in the global and local economic environment, and the company's quarterly and annual financial data remain key indicators closely monitored by investors.
Recent Financial Data for SABIC Shares (2024-2025)
The years 2024 and 2025 witnessed significant changes in SABIC's financial performance due to fluctuations in global oil and chemical prices. In 2024, the company announced total cash dividends of 3.4 SAR per share, divided equally between 1.7 SAR for the first half and 1.7 SAR for the second half.
On the earnings front, the results for the first half and second quarter of 2025 showed a significant decline, with the company recording net losses of approximately 4.8 billion SAR during the first nine months of 2025, compared to profits of around 440 million SAR in the third quarter of the same year. These figures reflect SABIC's sensitivity to fluctuations in oil prices and global demand for petrochemical products.
Despite these fluctuations, the company continues to maintain strong liquidity, and its dividend distribution policy remains an attractive factor for investors seeking regular income.
SABIC Stock Price Development and Market Capitalization
The price of SABIC shares ranged between 80–90 SAR during late 2024 and early 2025, after exceeding 100 SAR at certain times in 2023. This volatility reflects the state of global markets and the petrochemical sector's sensitivity to changes in supply and demand and energy prices.
SABIC's market capitalization reached approximately 100 billion USD (around 375 billion SAR) following Aramco's acquisition, making it the second-largest company listed in the Saudi stock market.
It is important to note that the stock price is also influenced by financial results announcements, dividend distributions, and strategic initiatives such as new investments or changes in the company's operational structure.
Price-to-Earnings (P/E) Ratio and SABIC Stock Valuation
The price-to-earnings (P/E) ratio of SABIC shares is based on the company's net profits compared to its market value. At the end of 2022, the P/E ratio was at high levels, but it gradually declined with the drop in profits in 2024, reaching non-significant (zero or negative) levels in 2025 due to recorded losses.
The P/E ratio is an important indicator for assessing the attractiveness of the stock, as it reflects the company's ability to generate profits relative to the stock price. However, when losses occur, this indicator becomes less meaningful and other factors such as cash flows, dividend policies, and future growth strategies should be considered.
Other indicators such as the price-to-book ratio and dividend payout ratio are used to provide a more comprehensive picture of SABIC's stock valuation under changing conditions.
Dividend Policy and Dividend Yield
SABIC is known for its policy of regularly distributing cash dividends to its shareholders, with distributions ranging between 3.3 and 3.5 SAR per share annually in recent years. In 2024, total distributions reached 3.4 SAR per share, reflecting the company's commitment to rewarding shareholders despite market challenges.
The dividend yield varies according to the stock price in the market, typically estimated between 5% and 7%. The dividend yield represents an important indicator for investors interested in fixed income. Conversely, the company has not announced any distributions for 2025 yet due to losses recorded during that period, reflecting the link between the distribution policy and the company's actual financial performance.
It is important to monitor the company's official announcements to know the approved distributions after each board meeting.
The Petrochemical Sector and SABIC's Competitive Position
SABIC shares fall within the petrochemical and chemical sector in the Saudi market, a sector that experiences intense competition with local and global companies. SABIC is the leading company in this sector within the Kingdom, facing competition from companies such as SABIC Agricultural Nutrients, Sipchem, and other major industries.
Globally, names like BASF and Dow Chemical emerge as competitors in plastics and specialty chemicals. SABIC is distinguished by its ability to strategically maneuver in the face of challenges, through product development, cost optimization, and investment in modern technologies.
Competition is not limited to petrochemicals only, but extends to other industrial sectors such as cement, where companies like Hail Cement (symbol 3001) represent competition in the construction sector, reflecting the competition for capital within the Saudi industrial sectors.
The Importance of SABIC in Saudi Vision 2030
SABIC plays a pivotal role in achieving the goals of Saudi Vision 2030, particularly in diversifying national income sources and developing non-oil industries. The partnership between SABIC and Aramco is a model for integration between the Kingdom's core economic sectors.
SABIC is working to expand value chains within the Kingdom, increase local content, and create new job opportunities. It also participates in sustainability projects and initiatives, such as developing plastic recycling technologies and reducing the carbon footprint of its products, enhancing its position as a strategic partner in national transformation plans.
These efforts contribute to enhancing the attractiveness of SABIC shares for local and international investors seeking opportunities in the thriving Saudi economy.
The Relationship Between SABIC Shares and Global Oil Prices
The performance of SABIC shares is closely linked to global oil and gas prices, as the main raw materials for the petrochemical industry depend on oil and gas derivatives. Rising oil prices often lead to increased production costs, but they may also be accompanied by increased demand for final products.
Conversely, periods of declining oil prices exert pressure on profit margins, especially if they coincide with a decline in global demand or increased supply. The years 2024 and 2025 witnessed sharp fluctuations in oil prices, directly affecting SABIC's results and its stock performance in the market.
Therefore, understanding the dynamics of the energy market is essential when monitoring sabic stock and analyzing its movements.
The Impact of Government Policies and National Initiatives on SABIC
SABIC benefits from ongoing government support for petrochemical industries, whether through industrial policies or national sustainability programs. The company participates in initiatives such as the sustainability program and energy efficiency improvements, enhancing its ability to face environmental and economic challenges.
SABIC's participation in localization programs and increasing local content represents an important pillar in its strategy, and these efforts reflect in improving its competitiveness both locally and internationally.
Government policies contribute to providing a favorable investment environment and support the company's plans for expansion in global markets and enhancing industrial innovation.
Recent Developments in SABIC and Future Strategies
In the recent period of 2024 and early 2025, SABIC continued to implement its strategy to transition towards environmentally friendly technologies and the circular economy. These efforts included investing in recycled plastics and low-carbon chemicals, as well as upgrading existing production facilities to increase efficiency.
Despite the challenges posed by global market downturns, the company has maintained expansion plans and investment in new projects, focusing on enhancing sustainability and reducing reliance on traditional resources.
SABIC seeks to balance maintaining shareholder profitability while meeting the demands of global industrial transformation, positioning itself to capitalize on future opportunities in the petrochemical sector.
How to Monitor SABIC Stock Performance and News
To regularly monitor sabic stock, it is advisable to rely on official sources such as the Saudi financial market (Tadawul) website, SABIC's official website, in addition to reliable financial news platforms such as Argaam, Arjam, and Bloomberg Arabia.
The company publishes its quarterly and annual financial reports through these platforms, and stock price tables and movements are updated daily. Expert financial analyses can also be followed through social media networks or subscribing to financial market newsletters for instant updates.
Relying on multiple sources enhances the investor's ability to make decisions based on accurate and objective information.
The Relationship Between SABIC Shares and Other Industrial Sectors (Example: Hail Cement)
Despite the differing nature of activities between SABIC (petrochemical sector) and companies like Hail Cement (construction sector, symbol 3001), both fall under the heavy industrial sectors in the Kingdom. The performance of these stocks is influenced by macroeconomic factors such as government policies, energy prices, and levels of urban and industrial growth.
Industrial companies compete for capital and investor interest, and the recovery of one sector (such as construction or industrial transformation) may have a positive impact on other sectors through increased demand for products or stimulating new investments.
Hail Cement shares (3001) are an example of a company playing an important role in infrastructure projects, while SABIC remains a leader in petrochemicals, illustrating the dynamics of the Saudi market and the diversity of investment opportunities within it.
Conclusion
SABIC stock (sabic stock) represents one of the foundational pillars of the Saudi stock market, reflecting the development of the national economy and efforts to diversify income sources in the Kingdom. By reviewing financial performance, dividend policy, the company's position in the sector, and the latest strategic initiatives, it is evident that SABIC continues to adapt to global changes and seeks to enhance its competitive position through investment in green technologies and sustainability. Despite challenges arising from fluctuations in oil prices and global demand, SABIC retains its attractiveness for investors interested in manufacturing industries and leading stocks.
However, making investment decisions in sabic stock or other market shares requires careful study of financial data, monitoring market developments, and understanding the company's policies and future directions. We always emphasize the necessity of consulting a licensed financial advisor before embarking on any investment, and you can benefit from the SIGMIX platform to follow reliable news and analyses about Saudi stocks and the performance of listed companies.
Frequently Asked Questions
The stock of Saudi Basic Industries Corporation (SABIC) is listed in the Saudi financial market under the symbol 2010. This symbol serves as a primary reference for investors and followers of the stock's performance on trading platforms and financial markets. Through this symbol, one can monitor the stock's movement, access financial reports, and official announcements issued by the company.
The price of SABIC shares fluctuates continuously based on trading sessions and market conditions. In late 2024 and early 2025, the stock price ranged between 80 and 90 SAR approximately. The market capitalization reached around 100 billion USD (approximately 375 billion SAR) following Aramco's acquisition of the majority stake, making SABIC the second-largest listed company in the Saudi market by market capitalization. For the latest prices, it is always advisable to refer to official financial sources.
The P/E ratio of SABIC shares (P/E) is calculated by dividing the market price of the stock by the annual earnings per share. In cases where the company records good profits, the ratio indicates the company's ability to create added value for shareholders. However, in the event of losses, as in 2025, the ratio becomes insignificant or negative, and it is not advisable to rely solely on it for stock evaluation. It is recommended to study additional indicators such as cash flows and distribution policy.
SABIC is known for its relatively regular cash dividend distribution policy when the company achieves positive earnings. The distributions in 2024 amounted to approximately 3.4 SAR per share. The dividend yield is the ratio of the distribution to the stock price, typically ranging between 5% and 7% depending on market prices. It is essential to monitor the company's official announcements to know the actual distributions after each board meeting.
SABIC is the leading company in the Saudi petrochemical sector. Among the notable local competitors are SABIC Agricultural Nutrients, Sipchem, and some national chemical companies. Globally, SABIC competes with major companies such as BASF and Dow Chemical, as well as Aramco's joint ventures like Sadara. The competition focuses on product development, cost reduction, and investment in modern technologies.
SABIC shares are significantly affected by fluctuations in oil prices, as the raw materials for the petrochemical industry depend on oil and gas derivatives. Rising oil prices may lead to increased production costs, but they are often accompanied by growth in demand for final products. Conversely, falling prices negatively impact profit margins, especially if they coincide with declining global demand, as occurred in 2024-2025.
SABIC focuses on investing in clean technology and the circular economy, such as producing recycled plastics and developing low-carbon chemicals. It also aims to enhance operational efficiency and expand local value chains. These strategies aim to achieve sustainable growth and meet the requirements of the global energy transition, supporting the company's competitive position in the long term.
It is advisable to follow news and performance of SABIC shares through the official website of the Saudi Tadawul market, SABIC's official website, and reliable financial news platforms such as Argaam, Arjam, and Bloomberg Arabia. You can also subscribe to financial market newsletters or follow financial experts' accounts on social media for regular and reliable updates.
Despite the fundamental difference in activity (SABIC in petrochemicals, and Hail Cement in construction), both belong to the heavy industries in the Kingdom. The performance of these stocks is influenced by macroeconomic factors such as government policies, energy prices, and rates of industrial and urban growth. Market dynamics often reflect the interaction of industrial sectors with each other, making it important to monitor stocks like 3001 alongside SABIC for investment trend analysis.
The main risks that SABIC shares may face include fluctuations in global oil and petrochemical prices, changes in industrial demand, intense competition from local and international companies, and environmental regulations related to sustainability. Sudden changes in government policies or global markets may also affect the company's profitability and stock performance. It is always advisable to assess these risks as part of any investment strategy.