The term sabic tadawul is one of the most frequently discussed terms among those interested in the Saudi stock market and seeking investment opportunities in the basic materials sector. The Saudi Basic Industries Corporation (SABIC) holds a pivotal position in the Saudi financial market (Tadawul), being the second-largest listed company after Aramco in terms of market capitalization, with its financial performance linked to fluctuations in global oil and petrochemical prices. As the stock price and market capitalization fluctuate, interest from investors and analysts in studying SABIC's stock and its developments increases. In this article, we will provide a comprehensive and detailed analysis of sabic tadawul, reviewing the company's structure, financial performance, dividends, key stock indicators, as well as analyzing the materials and chemicals sector in Saudi Arabia, and comparing SABIC with its local and global competitors. We will also highlight the latest news and developments, addressing the most common questions about SABIC's stock. The goal of this article is to provide a neutral educational reference that helps the reader understand SABIC's position in the Tadawul market without offering any investment recommendations, while emphasizing the importance of consulting a licensed financial advisor before making any investment decisions.
Definition of SABIC and Its Position in the Saudi Financial Market
The Saudi Basic Industries Corporation (SABIC) was established in 1976 as part of an ambitious government initiative to diversify the Saudi economy, and today it is one of the largest petrochemical companies in the world. The Saudi government (through the Public Investment Fund) and Saudi Aramco hold the majority stake in SABIC, providing it with clear financial strength and strategic support. In the Tadawul market, SABIC's stock is one of the pillars relied upon by the TASI index, known by the symbol 2010. SABIC's operations span several industrial sectors, including the production of chemicals, fertilizers, plastics, metals, and other basic materials. The company manages large industrial complexes in Jubail, Yanbu, and Ras Al Khair, in addition to international branches in Europe, Asia, and North America. SABIC's size and its direct impact on the market index make it a strategically important company in the national economy and the objectives of Saudi Vision 2030.
Analysis of SABIC Stock Performance (sabic tadawul) During 2024–2025
SABIC's stock experienced waves of price fluctuations during 2024 and 2025, influenced by local and global factors, primarily oil prices and the global economic situation. The stock price ranged between 45 and 65 SAR during this period, peaking at 63.10 SAR in March 2025 before declining with the company's profits in the first half of 2025. By early 2026, the stock price was approximately 56.05 SAR according to Tadawul data. This volatility is attributed to changes in global demand for petrochemicals, energy costs, and shifts in Saudi industrial policy. It is important to note that SABIC's stock is considered one of the heavyweight stocks that influence the general market index, representing between 5–10% of the TASI index at certain times. Additionally, the stock's activity and trading volume reflect the trends of financial institutions and large investors in the Saudi market.
SABIC's Market Capitalization and Its Importance in Trading
SABIC's market capitalization exceeds 300 billion SAR, making it the second-largest listed company after Aramco. The market capitalization is calculated by multiplying the stock price by the number of issued shares (approximately 5 billion shares), positioning SABIC as a strategic hub in the Tadawul market. This massive size gives it a key role in determining TASI index trends and makes it a reference point for local and foreign investors. Furthermore, SABIC's market capitalization affects emerging market ratings and serves as an indicator of the size and strength of the manufacturing sector in the Kingdom. SABIC represents between 5 to 10% of the overall market index, and its stock movements are seen as a mirror of the Saudi economy's performance, especially during periods of economic upturn or downturn.
Price-to-Earnings Ratio (P/E) and Analysis of SABIC's Financial Indicators
The price-to-earnings (P/E) ratio of SABIC's stock is one of the key indicators for assessing the stock's attractiveness. In 2024, with net profits exceeding 4.5 billion SAR, the P/E ratio was approximately 67 at a stock price of 60 SAR. However, with declining profits in the first half of 2025 and net losses of around 5.3 billion SAR, the ratio rose to unusual levels, making it difficult to calculate accurately amid losses. This change illustrates the stock's sensitivity to profitability factors and economic cycles in the petrochemical sector. The P/E ratio for SABIC is higher than that of some other industrial companies during periods of weak profits, but it also reflects the company's strength during recovery periods and the substantial dividends it achieves in good years.
Analysis of Dividends and Earnings per Share in SABIC
SABIC adheres to a relatively generous dividend distribution policy compared to other listed companies. In the first half of 2025, the company announced a cash dividend of 1.5 SAR per share, equating to an annual yield of approximately 5% if the distribution rate continues in the second half. The importance of SABIC's dividends lies in their attractiveness to investors seeking stable income, and the regularity of the distribution policy reflects the company's strong financial position, despite periodic fluctuations in profits. It is worth noting that the yield on dividends is more attractive during periods of stable stock prices and improved profits, while it may be negatively affected in the event of declining financial results or falling global prices for petrochemical products.
The Sector in Which SABIC Operates: Materials and Chemicals in Saudi Arabia
SABIC operates within the basic materials and chemicals sector, which is one of the most dynamic sectors influenced by global economic cycles. This sector includes the production of petrochemicals, fertilizers, plastics, metals, and other raw materials that are integral to most manufacturing industries. The Saudi chemical sector is a cornerstone of the Kingdom's Vision 2030, as the state seeks to diversify income sources and support non-oil industries. Companies in this sector are affected by oil and gas prices (as they are the primary raw materials), in addition to global demand, shipping costs, and environmental expenses. SABIC is distinguished by its competitive advantage in terms of cost and quality, thanks to government support and the availability of raw materials at competitive prices.
SABIC's Local and Global Competitors
SABIC faces strong competition locally from companies such as National Industrialization Company (Tasnee), Saudi International Petrochemical Company (SIPCHEM), and Saudi Arabian Fertilizer Company (SAFCO). Regionally, it competes with companies from the UAE, Qatar, and Kuwait, such as ADNOC for Petrochemicals. Globally, it stands alongside chemical giants like Dow Chemical, BASF, and LyondellBasell. Competition in this sector relies on production volume, cost efficiency, innovation capability, and flexibility in dealing with global price fluctuations. Despite the intense competition, SABIC maintains a relative advantage in regional and international markets due to its integration with Aramco, the availability of raw materials, and ongoing government support.
Recent Developments and News About SABIC in Trading
SABIC has witnessed several significant developments during 2024 and 2025, most notably the announcement of weak financial results for the first half of 2025, with net losses amounting to 5.3 billion SAR. The company also announced a study to list independent industrial units (such as the National Industrial Gases Company) on Tadawul in collaboration with GASC. In terms of innovation, the company launched developmental projects in environmentally friendly polymers and plastic recycling, in addition to expanding its facilities in Ras Al Khair and Yanbu. The company continued to organize investor meetings and press conferences to explain its future plans and strategic directions, focusing on sustainability and operational efficiency.
SABIC's Performance During Global Crises and Economic Fluctuations
SABIC's financial results are sensitive to major global events, such as the COVID-19 pandemic and the repercussions of the Russia-Ukraine war. During the COVID-19 pandemic, global demand for oil and chemicals declined, negatively impacting the company's profitability. With the market recovery in 2021–2022, SABIC regained part of its profits, but it faced renewed pressure from geopolitical fluctuations and rising global energy costs. SABIC partially benefited from government support and the availability of gas at competitive prices, but challenges remain with ongoing changes in global demand, intense competition, and international environmental regulations.
Governance and Management in SABIC and Its Impact on Financial Performance
SABIC is subject to strict governance and transparency standards, overseen by the Saudi Capital Market Authority. Following Aramco's acquisition of 70% of SABIC's shares in 2020, there has been greater integration between the oil and chemicals sectors in the Kingdom, positively reflecting on the stability of raw material supplies. SABIC's board of directors includes leadership figures from Aramco and the Public Investment Fund, focusing on implementing Vision 2030 and adopting effective governance. The company is committed to publishing quarterly financial reports and adopting disclosure standards to protect the rights of all shareholders and enhance confidence in the stock.
SABIC's Future Strategy Under Vision 2030
SABIC's strategy revolves around expanding clean technologies (GreenChemicals), transitioning to a circular economy, and enhancing innovation in the chemical industry. The company invests in developing recyclable products and improving operational efficiency through digital transformation and smart technologies. It also aims to grow its global business through strategic partnerships in Asia and Europe, targeting new markets for petrochemicals. SABIC places special importance on balancing dividend distribution to shareholders and reinvesting part of its profits in expansion projects to ensure sustainable growth and profitability in the long term.
Risks and Challenges of Investing in SABIC Stock
Despite SABIC's financial strength and leadership position, the stock faces several risks, primarily fluctuations in oil and petrochemical prices, rising energy costs, global environmental regulations, and pressures from regional and international competition. Additionally, the company's results may be negatively affected during periods of recession or weak global demand, which could impact dividends and the stock price on Tadawul. For this reason, it is important for investors to monitor the company's news and periodic financial data and to exercise caution when analyzing the stock's performance within their investment portfolio.
The Importance of Consulting a Licensed Financial Advisor Before Any Investment Decision
It is always advisable to consult a licensed financial advisor before making any investment decision related to SABIC stock or other stocks listed on Tadawul. The Saudi market is characterized by dynamism and its connection to global factors, and any investment in the basic materials and chemicals sector requires a precise understanding of the business cycle and associated risks. A financial advisor can help investors build a balanced portfolio, assess the suitability of investing in SABIC according to their long-term financial goals, while considering the acceptable risk level for each investor.
Conclusion
SABIC stock (sabic tadawul) represents one of the main pillars of the Saudi stock market, and its financial and industrial performance reflects the reality of the basic materials and chemicals sector in the Kingdom. Through a comprehensive review of the stock's performance during 2024–2025, it is evident that SABIC is significantly affected by external factors such as fluctuations in oil prices and global demand, yet it maintains strong foundations in terms of government support, integration with Aramco, and robust governance and management. Financial indicators such as large market capitalization, fluctuating P/E ratio, and relatively generous dividends illustrate the stock's attractiveness, with the necessity of monitoring future developments and fluctuations in profit performance. Ultimately, the SIGMIX team emphasizes the importance of deep analysis and not relying on any single report or article to make investment decisions. Therefore, it is recommended to seek the assistance of a qualified and licensed financial advisor before taking any investment steps in SABIC shares or other Tadawul stocks, to ensure alignment of the investment with personal financial goals and to consider potential risks.
Frequently Asked Questions
SABIC stock is the listed stock of the Saudi Basic Industries Corporation, one of the largest chemical companies in the world. The stock is traded on the Saudi financial market (Tadawul) under the symbol 2010. It is considered one of the leading stocks in the Saudi market, representing a significant portion of the overall market index (TASI), and its performance reflects trends in the basic materials sector in the Kingdom.
SABIC stock experienced noticeable fluctuations during 2024–2025, with its price ranging between 45 and 65 SAR, influenced by changes in oil prices, global demand for petrochemicals, and quarterly financial results. The stock recorded an increase in the first quarter of 2025 before declining with losses recorded in the first half of the same year. This performance reflects the cyclical nature of the sector in which the company operates.
SABIC's market capitalization exceeds 300 billion SAR, making it the second-largest listed company in the market after Aramco. This value gives it significant weight in the TASI index and directly affects the movement of the Saudi market. It is also a reference for investors analyzing the performance of the basic materials and chemicals sector.
The price-to-earnings ratio is calculated by dividing the stock price by the annual earnings per share (EPS). In 2024, the ratio was approximately 67 due to strong profits, but it rose unusually in 2025 with the company recording net losses in the first half. This indicator reflects the stock's sensitivity to economic cycles and profit fluctuations in the chemicals sector.
SABIC regularly distributes cash dividends, with the distribution for the first half of 2025 being approximately 1.5 SAR per share, equating to an annual yield of around 5% if the same rate continues for the second half. The distribution policy is one of the company's strengths, but it is affected by the company's profitability results and global market conditions.
The main risks include fluctuations in oil and petrochemical prices, rising costs, intense competition locally and internationally, and changes in regulatory environments. Additionally, the company's financial results may be negatively impacted during periods of economic recession or declining global demand, which would reflect on dividends and the stock price.
SABIC competes with local companies such as Tasnee and SABIC Agri-Nutrients, regionally with Gulf companies, and globally with giants like Dow and BASF. Competition relies on production capacity, cost efficiency, and technological innovation. Despite the competition, SABIC maintains a relative advantage due to government support and integration with Aramco.
It is always advisable to consult a licensed financial advisor before making any investment decision, especially in cyclical stocks like SABIC. A financial advisor can help assess risks, determine the stock's suitability for financial goals, and build a balanced investment portfolio that considers market variables.
SABIC is focusing on transitioning to environmentally friendly industries and sustainability, developing recyclable products, enhancing digital transformation, and expanding international partnerships. It also aims to improve operational efficiency and balance between dividend distribution and investment in future growth projects.
News and developments about SABIC stock can be followed through the official Tadawul website, the company's official website, and economic reports. Local and international economic newspapers also provide periodic reports on the company's performance and financial results. It is important to rely on official and credible sources for data analysis.
Given SABIC's large size and its relative weight in the TASI index, its quarterly results directly affect the movement of the overall Saudi market index. Any significant change in the company's profits or losses may reflect on investor sentiment and the market's overall performance, especially during periods of economic fluctuations.
Saudi Aramco owns about 70% of SABIC's shares since 2020, leading to enhanced integration between the oil and chemicals sectors in the Kingdom. This integration provides SABIC with stability in raw material supplies and supports its expansion and investment plans at both local and global levels.