Saudi Aramco-led Sabic signs deal with Saudi Arabia export authority
Saudi Exports will work with Sabic to encourage exports at the chemicals company that was acquired by Aramco in March
Saudi Basic Industries Corporation (Sabic), 70% of which is owned by state-owned oil and gas giant Saudi Aramco, has inked an agreement with Saudi Export Development Authority (Saudi Exports) to promote and develop non-oil exports, a key tenet of the kingdom’s Vision 2030 economic diversification plan.
According to an Arabic-language statement on state news agency, SPA, the deal – signed in the presence of Eng Fuad Mohamed Mousa, Saudi Exports’ vice president of local content and business development unit – will focus on promoting Sabic’s products internationally.
The move supports the kingdom’s drive to boost its exports, with Saudi Arabia’s Vision 2030 expected to increase the proportion of non-oil exports from 16% to 50% of the total value of the kingdom’s GDP.
Saudi Exports helps exporters overcome obstacles related to the export of their product, raise the knowledge of export practices, and offer consulting services.
The deal comes four months after Saudi Aramco, the developer behind some of the world’s largest oil and gas projects, acquired a 70% in Sabic from the Crown Prince HRH Mohammed Bin Salman-led Public Investment Fund in a transaction valued at $69.1bn (SAR259.1bn).
Saudi Aramco’s senior vice president of downstream, Abdulaziz Al-Judaimi, said at the time that Sabic was a “strategic fit” for the oil giant, which is investing in the development of resource-efficient processes, such as crude-oil-to-chemicals technology, or COTC.
The acquisition is expected to support Saudi Aramco’s plans to enhance its downstream portfolio by increasing its refining capacity from the current 4.9 million barrels per day (bpd) to 8-10 million bpd by 2030.