Q: Saudi Arabia has just hosted the WPC Energy Congress for the first time, what does this landmark say about the development of the Kingdom’s energy sector?
A: At the outset, I would like to congratulate my home country the Kingdom of Saudi Arabia and its wise leadership on successfully hosting an unparalleled gathering of leaders and experts of the energy industry, including from the downstream sector. This is truly a moment of pride.
The event featured a distinctive calibre of speakers, deep discussions and sizable participation, serving as a testament to the exceptional stature that the Kingdom has reached in the global energy industry under the guidance of HRH Prince Abdulaziz bin Salman bin Abdulaziz Al Saud, the Kingdom’s Minister of Energy and Minister of Industry and Mineral Resources.
The Kingdom has been positioned at the forefront of the energy sector, whether the focus is on oil, gas, petrochemicals, renewable energy or any other, and I am confident that it will continue to be so for many decades to come. Indeed, SABIC is proud that it has been part of this historic journey and we look forward to continuing contributing to it in the years ahead.
Q: SABIC just marked its 50th Anniversary, has divested non-core operations, is finalizing the SABIC Fujian Petrochemical Complex development, and recently signed a Project Development Agreement with Rongsheng Petrochemical. How important has 2026 been for setting up SABIC for 2027 and beyond?
A: In addition to holding a seminal value, the year 2026 has been nothing short of historic for SABIC.
This year, SABIC marked its Golden Jubilee, commemorating a journey that started in 1976 by a landmark Royal Decree issued by King Khalid bin Abdulaziz Al Saud, then the King of the Kingdom of Saudi Arabia. This milestone constituted a turning point in the history of the Kingdom and the petrochemical industry, as it led to the birth of what soon became a national champion and a global industry leader.
SABIC was founded on the principle of value creation through transforming resources that had been wasted otherwise into useful materials, so one could argue that the company was born with a sustainability mindset. If we were to summarize SABIC’s success journey, the first five decades demonstrated a robust vision, infinite ambition and firm commitment that have paved the way for more decades of success, growth and achievements.
Several key growth projects also moved forward. SABIC’s affiliate Ar-Razi received feedstock allocation from the Kingdom’s Ministry of Energy, allowing us to build a methanol plant in Jubail, with a production capacity of 1.8 million tons per year. The SABIC Fujian Petrochemical Complex, with an expected annual production capacity of up to 1.8 million tons of ethylene, is progressing as planned and has now entered the final phase towards start-up, which is scheduled for the end of 2026.
The SABIC Agri-Nutrients Company has also recently finalized a final investment decision (FID) for a key project that will help increase the company’s urea production capacity to 7.4 million metric tons per annum, an increase of around 54% compared to current production levels.
SABIC additionally signed several agreements and memorandums of understanding in 2026, as part of the company’s continued focus on identifying key opportunities that supports the company’s pursuit of sustainable growth and long-term value creation. These include partnerships with Lenovo, CEER and Rongsheng Petrochemical.
Looking ahead, we aim to continue supporting Saudi Vision 2030 and the National Industrial Strategy of the Kingdom, in support of the Saudi economy and the local community. I am indeed optimistic about the future of SABIC.
Q: You took office as CEO in April, what are your key priorities for SABIC?
A: My priorities revolve around three pillars, which together define SABIC’s overall strategy.
Firstly, the Portfolio Optimization Programme, with the objective of assessing the performance of our assets and operations worldwide in line with our strategic priorities and industry’s best practices, boosting sustainable value creation for shareholders over the long term and facilitating capital reallocation towards more profitable opportunities.
Secondly, the Transformation Programme, which aims at enhancing the Company’s financial performance, with the primary objective of generating a positive financial impact of $3 billion in EBITDA by 2030.
The programme has two primary goals: First, it aims at generating $1.4 billion through cost reductions, which includes optimizing general and administrative expenses, reducing manufacturing costs, and decreasing spending through efficient procurement and supply chain management. Second, generating $1.6 billion by maximizing value creation through enhanced production reliability and efficiency, as well as excellence in commercial operations.
Thirdly, Selective Growth, which focuses on carefully choosing and pursuing opportunities for growth that pave the way for a brighter and more promising future for SABIC. Among the programme’s key projects are the SABIC Fujian Petrochemical Complex in China and the methyl tertiary butyl ether (MTBE) plant at our affiliate Petrokemya in Jubail.
These integrated efforts seek to strengthen our competencies and focus on areas where we have a clear competitive advantage to achieve robust value creation, sustainable growth and long-term success. Accordingly, a detailed roadmap and a robust monitoring framework have been developed to track the progress of these strategic programmes.
Q: The last few years have been difficult for the petrochemicals sector as a whole, with overcapacity impacting margins. How do you see this evolving in 2027?
A: The petrochemical industry has undergone structural changes in the last few years. These changes, in summary, have revolved around the introduction of new sources of supply, changes in demand and increased complexities in some regions. Influencing factors range from policies to technological advancement, highlighting the high degree of complexity of our industry’s operational environment.
However, I am optimistic about the prospects of petrochemicals for 2027 and beyond, as the industry continues to deliver vital products for our lives – a fact that is supported by numerous evidence – and provide significant contributions to the global economy and the international community.
For instance, our sector contributes around 7% of global gross domestic product (GDP), or around $6 trillion, directly or indirectly, while it supports 120 million jobs roughly worldwide, providing income to numerous households worldwide. Additionally, 90% of everyday products contain at least one type of chemicals. These figures reaffirm the industry’s vital position globally.
Sabic’s Operations Are Centered In The Jubail Downstream Hub
Q: 2026 has brought unique headwinds of its own, with the Strait of Hormuz effectively closed for much of the year. How has SABIC navigated the supply chain disruption?
A: While uncertainties stemming from recent developments continue to pressure markets, SABIC continues to be focused on its strategic priorities to deliver value across the chain, taking stock of our rich and longstanding history of more than 50 years.
In this context, 2026 witnessed several success stories, of which we are truly proud, especially with regard to supply chain management – the sector’s operating backbone – demonstrating our continued operational excellence and firm commitment to supporting the needs of our customers across the globe.
For example, the close collaboration with our partners and the utilisation of the newly launched Red Sea Express container service has facilitated the export of 1,494 standard units (TEU) of SABIC products in September 2026 through King Fahd Industrial Port in Yanbu, helping us maintain reliable customer service.
Moreover, the volume of polymer products shuttled from the Kingdom’s East to the West more than doubled by the end of the second quarter of the year. The SABIC Agri-Nutrients Company completed its first shipment of bagged and solid bulk urea via the west coast by the second quarter of 2026, further strengthening its global supply network and supporting global food security.
Q: How are technological innovations transforming the industry, and what advancements should we be looking out for next?
A: Technology is the lifeblood of the petrochemical industry, playing a critical and enabling role throughout its history, including in pushing boundaries and enhancing processes. Thus, new technologies are often seen as influential and transforming factors, such as artificial intelligence (AI).
Statistically, early adopters of AI have realised up to 30% reduction in unplanned downtime and up to 15-20% in energy consumption optimization. Furthermore, AI-powered systems analyse an extensive amount of data and parameters, such as pressure and temperature, in real time.
From a practical perspective, technology can help our industry in boosting safety, enhancing operations and improving sites and facilities management. At SABIC, we see advanced technology rather as an opportunity, enhancing our customer service through the use of automation and big data analytics across various facilities.
With advanced technology expected to play a critical role in our industry in the future, it is imperative that companies embrace technology in all aspects of business to improve effectiveness and efficiency, among other benefits.
*Interview conducted via email by Managing Editor Jamie Ingram
