SABIC stock is one of the most prominent and important stocks in the Saudi financial market, holding a central position for both local and international investors. The Saudi Basic Industries Corporation (SABIC) was established in 1976 and has since become a cornerstone of the chemical and petrochemical sector in the Kingdom, ranking among the largest companies globally in this field. SABIC stock is listed on the Saudi stock market under the symbol 2010 and is often viewed as an indicator of the health of the Saudi economy and the pulse of the basic materials sector. In recent years, SABIC's stock performance has experienced notable fluctuations due to changes in the global economic environment, oil prices, and internal events such as Aramco's acquisition of a majority stake in the company. In this comprehensive article, we review all aspects related to SABIC stock: from recent financial data to sector analysis and competition, as well as strategic developments and the impact of global and local economic factors. We will also highlight dividend distribution mechanisms, price-earnings ratios, and the effects of new industrial policies. This article aims to provide an educational and objective analysis without offering direct investment advice, emphasizing the importance of consulting a licensed financial advisor before making any investment decisions.
Definition of SABIC Stock and Its Importance in the Saudi Financial Market
SABIC stock, represented by the symbol 2010 in the Saudi financial market, is one of the most traded and influential stocks in the main market index (TASI). Since its establishment in 1976, SABIC has set ambitious goals to develop the petrochemical and advanced industries sector, extending its activities to include the production of chemicals, polymers, fertilizers, and metals. The acquisition of approximately 70% of SABIC's shares by Saudi Aramco has placed it within the framework of national industrial integration, while a significant portion of the shares remains available for free trading. The importance of SABIC stock lies in its reflection of the trends in the Saudi economy and industrial diversification policies, and investors use it as an indicator for the basic materials sector in general. With SABIC's strong presence in global markets, its stock movements are influenced by local and international factors, making it a key focus in studying the dynamics of the Saudi market.
SABIC's Industrial and Operational Activities
SABIC's activities range from chemical and petrochemical industries to the production of polymers, fertilizers, and fiberglass. The company benefits from the Kingdom's strategic location and abundant natural resources in oil and gas, giving it a competitive advantage in securing essential raw materials. SABIC has a vast production network that includes several industrial complexes in Jubail and Yanbu, in addition to investments and partnerships in Asia, Europe, and North America. In recent years, the company has focused on developing high-value-added products, such as engineering polymers and specialty materials, to reduce dependence on basic products exposed to global price fluctuations, and is increasingly investing in sustainability solutions, recycling technologies, and the circular economy.
Ownership Structure and Integration with Saudi Aramco
Saudi Aramco is the controlling owner of SABIC after acquiring about 70% of the company's shares in a massive deal valued at approximately $69 billion. This integration represents a strategic step aimed at unifying the value chains in the oil and petrochemical sectors, enhancing operational efficiency and providing long-term financial support for SABIC. This integration is also reflected in directing investment policies and product development, as the two companies collaborate on industrial transformation projects, renewable energy, and the development of advanced petrochemical solutions. The presence of Aramco as a major partner enhances SABIC's resilience against market challenges and provides opportunities for global expansion, but it also makes its results more closely tied to trends in the energy sector and oil prices.
SABIC Stock Financial Performance: A Look at 2024–2025 Results
SABIC's financial results during 2024 and 2025 experienced significant fluctuations. In the first half of 2024, the company recorded a net profit of 2.18 billion SAR, an increase of approximately 84.7% compared to the same period last year. However, the full annual performance for 2024 ended with a net profit of only 1.54 billion SAR, after a net loss of 1.89 billion SAR in the fourth quarter due to accounting provisions and precautionary measures. In 2025, the company incurred net losses of 5.28 billion SAR in the first half (including 4.1 billion in the second quarter), with a slight improvement in the third quarter achieving a profit of 440 million SAR. These results reflect the company's exposure to global market conditions, changes in oil prices, and non-recurring expenses related to financial hedging and industrial asset upgrades.
Financial Indicators Analysis: Price, Market Value, and P/E Ratio
SABIC's stock price typically ranges between 50 and 60 SAR during 2024, while it witnessed a decline in 2025 affected by negative financial results. The company's market value is between 150 and 170 billion SAR, making it one of the largest listed companies in Saudi Arabia. The price-to-earnings (P/E) ratio is difficult to rely on in 2025 due to accounting losses, making the indicator negative or meaningless. In previous years, the P/E ratio usually hovered in the double digits, reflecting the company's large industrial size. It is important for investors to monitor these indicators periodically along with official financial disclosures to track performance shifts and assess influencing factors.
SABIC's Dividend Policy and Recent Changes
Historically, SABIC has been a leading company in distributing cash dividends to its shareholders, especially in years when it achieves strong profits. It announced significant distributions in years like 2021 and 2022. However, the distribution policy has seen adjustments in recent years, as the board of directors preferred to reinvest profits and reduce distributions due to financial challenges and accounting losses in 2024 and 2025. This approach aims to strengthen the company's financial position and fund future development plans. The decision to distribute dividends depends on annual results and financing needs, and investors are advised to follow the company's official announcements to stay updated on annual distributions.
The Petrochemical Sector: SABIC's Position and Local and International Competition
SABIC operates in the chemical and petrochemical industries sector, which is a vital sector heavily reliant on oil prices and global demand for plastics and chemicals. SABIC leads local competition against companies such as the National Company for Basic Industries (SPIMACO) and Al-Jubail Fertilizer Company, but it surpasses them in terms of size and reach. Internationally, SABIC faces competition from giants like BASF, DowDuPont, LyondellBasell, Sinopec, and LG Chem. Competitiveness depends on innovation, production capabilities, and operating costs, with increasing attention to the transition towards a green economy and the development of sustainable products.
Impact of Oil Prices and Global Economic Factors on SABIC
SABIC's profitability is directly affected by fluctuations in oil prices, given its reliance on oil and gas as a primary source of raw materials. Rising oil prices increase production costs and may pressure profit margins if the company cannot pass the increase onto customers. Conversely, falling prices may provide a competitive cost advantage. Additionally, global economic factors—such as industrial growth, demand rates for petrochemicals, and trade tensions—play a pivotal role in determining the company's results. International environmental regulations also impact SABIC's strategies to reduce emissions and develop sustainable products.
Key Strategic Developments and Recent Investment Deals
During 2024 and 2025, SABIC has focused on enhancing its investment and technological partnerships by signing agreements to develop renewable energy projects and recycle plastic materials. The company has also continued to activate the acquisition deal of Aramco's majority stake, which has supported regional and international expansion plans. The new strategy highlights investment in green industry projects and the development of high-value-added products that align with circular economy requirements, aiming to strengthen SABIC's position in European and Asian markets through partnerships with global manufacturing companies.
SABIC in Vision 2030 and Its Role in Saudi Industrial Development
SABIC plays a pivotal role in achieving the goals of Saudi Vision 2030 regarding industrial transformation and economic diversification. The company supports the development of manufacturing industries and works to increase local content in supply chains. It also invests in research and development projects to provide advanced industrial solutions and innovative chemical applications. SABIC aims to contribute to building an economy less dependent on crude oil by investing in technology, developing new materials, and enhancing partnerships with universities and research institutions. All of this contributes to achieving sustainable development and creating new job opportunities in the industrial sector.
Future Trends, Opportunities, and Challenges Facing SABIC
SABIC faces a future filled with challenges and opportunities. On one hand, global shifts towards a green economy, increasing demand for smart polymers, and the development of specialized industries present new growth opportunities. On the other hand, the company may face challenges such as fierce international competition, oil price volatility, and global environmental and regulatory requirements. SABIC's ability to succeed in the future depends on its flexibility in adapting to these changes, continuous investment in research and development, and expanding its customer base in both emerging and advanced markets.
Conclusion
SABIC stock represents one of the pillars of the Saudi financial market and one of the most important indicators of the dynamics of the petrochemical and manufacturing sector in the Kingdom. As we have shown in this article, the company's results are influenced by a wide range of factors, from global oil prices to shifts in demand for basic products, as well as regulatory changes and major investment strategies. Despite current challenges and profit volatility in recent years, SABIC continues to take strategic steps to enhance its position and develop its industrial and technological capabilities. It is important for anyone interested in SABIC stock or the Saudi industrial sector in general to monitor periodic financial data and review performance analyses from reliable sources such as the SIGMIX platform. Before making any investment decisions, it is always advisable to consult a licensed financial advisor to ensure that decisions are based on accurate knowledge and aligned with personal goals.
Frequently Asked Questions
SABIC stock is listed in the Saudi financial market under the symbol 2010. You can track the stock's performance through the official website of the Saudi financial market (Tadawul) or through approved financial data platforms such as Bloomberg and Reuters. These sources provide real-time data on the stock price, trading volume, and the latest financial announcements, as well as information on key financial indicators and distributions. It is also advisable to follow the company's official page and its periodic reports to stay updated on the latest developments.
SABIC's profits experienced notable fluctuations due to several key factors: First, the results were affected by changes in global oil prices that impact raw material costs and profit margins. Second, the company made one-time accounting provisions in 2025, increasing temporary losses. Third, profitability declined due to challenges in international markets and fluctuations in demand for petrochemical products. These combined factors affected net profit and revenues, making the P/E ratio irrelevant in some periods.
Saudi Aramco's acquisition of approximately 70% of SABIC's shares enhanced integration between the oil and petrochemical sectors in the Kingdom. The deal provided financial and strategic support to SABIC and allowed for unified efforts in product development and expansion into global markets. The integration also contributed to improving operational efficiency and reducing costs through the unification of supply chains. However, SABIC's performance has become more sensitive to fluctuations in oil prices and national strategic directions.
SABIC has followed a dividend distribution policy based on achieving sufficient annual profits, having distributed significant dividends in years with revenue growth such as 2021 and 2022. However, with declining profits and accounting losses in 2024 and 2025, the company reduced or postponed some distributions to strengthen its financial position and fund future investments. The distribution decision depends on final results and board decisions, and it is advisable to follow official disclosures to stay updated.
Locally, SABIC competes with companies such as the National Company for Basic Industries (SPIMACO) and Al-Jubail Fertilizer Company, although SABIC surpasses them in size and production capacity. Internationally, it faces stiff competition from giants such as BASF, DowDuPont, LyondellBasell, Sinopec, and LG Chem. Competition is determined by factors such as innovation, production costs, and product line diversity, with increasing importance placed on sustainable and environmentally friendly products.
SABIC's performance heavily relies on global economic factors and oil prices. Rising oil prices increase raw material costs, while global demand for petrochemical products boosts revenues. Economic downturns or weak demand lead to decreased sales and profits, and the impact increases with changes in international environmental and regulatory policies. Therefore, investors should monitor economic news and global energy prices when evaluating SABIC stock.
SABIC focuses its strategy on developing advanced petrochemical products with high added value, such as engineering polymers and recyclable materials. The company is enhancing research and development projects, collaborating with universities and technical institutions, and expanding its investments in renewable energy and green industries. It also aims to increase its presence in international markets, especially in Asia and Europe, through strategic partnerships and the establishment of new industrial complexes.
To stay updated on the latest news about SABIC stock, you can visit the Saudi financial market (Tadawul) website where all official disclosures and periodic financial reports are published. Platforms like Bloomberg and Reuters provide real-time data on stock prices and financial analyses. It is also advisable to follow the company's official website and press releases, as well as reports from specialized financial analysis firms like the SIGMIX platform, to gain detailed insights and analyses regarding stock performance and sector trends.
This article is purely educational and analytical and does not provide any investment advice or buy/sell recommendations. It aims to present the latest financial data and information and analyze SABIC stock performance from all aspects, adhering to the regulations of the Saudi Capital Market Authority. For any investment decision, it is essential to consult a licensed financial advisor who considers personal goals and the investor's financial situation before taking any action.