Basic industries development by SABIC: eight years' experience
This article offers background information on Saudi Basic Industries Corporation (SABIC) and puts into perspective the implications of Saudi Arabia's entry into the world petrochemical industry. Established in 1976 as a wholly owned government corporation, SABIC has been charged with the planning and construction of hydrocarbon-based industries for conversion of the Kingdom's abundant gas and gas-liquid reserves into a host of petrochemical and plastic products, on an economically viable basis, for domestic and international markets. In addition, these products will provide the essential linkage between the nations' hydrocarbon resources and the privately owned secondary industrial sector within Saudi Arabia which should be encouraged by SABIC's efforts. Ultimately, 75% of the total shares in SABIC will be sold to private citizens. During early 1984, 30% of SABIC stock was offered for sale and resulted in an oversubscription of more than $500 million. Saudi Arabia was confident that it had the will, the capital, and raw materials required to execute its plan. Nonetheless, officials were realistic enough to recognize the limits of the Kingdom's capabilities in bringing into production over $12 billion worth of petrochemical plants. In the face of this challenge and in support of free enterprise and free trade, the joint-venture approach has been utilized to achieve SABIC's aims.
- OSTI ID:
- 5067615
- Journal Information:
- J. Energy Dev.; (United States), Journal Name: J. Energy Dev.; (United States) Vol. 10:2; ISSN JENDD
- Country of Publication:
- United States
- Language:
- English
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ASIA
CHEMICAL PLANTS
FINANCING
INDUSTRIAL PLANTS
JOINT VENTURES
MARKETING
PETROCHEMICAL PLANTS
PLANNING
SAUDI ARABIA
TRADE