LONDON: Saudi Basic Industries Corp. (SABIC) is targeting investments in Africa as the petrochemicals giant taps rising demand for plastics worldwide.
The Riyadh-headquartered chemicals maker reported a 5.3 percent rise in third quarter net income to SR6.1 billion ($1.62 billion) on Sunday, which it attributed to better sales prices and volumes.
The world’s fourth-biggest petrochemicals company is looking for future investment opportunities in Africa, which is a promising market to maintain sales growth, Reuters reported citing its chief executive.
Yousef Al-Benyan also told reporters that the outlook for business in the US, Asia and China was still broadly positive despite some challenges relating to high energy prices.
The vast Saudi petrochemical industry is expected to experience a wave of consolidation this year with SABIC expected to be at the center of that process.
Saudi Aramco, the world’s biggest national oil company, is working on buying a stake in SABIC, Aramco CEO Amin Nasser told the Future Investment Initiative in Riyadh last week.
Hoever, anti-trust regulations will mean that the company’s planned acquisition of a controlling stake in SABIC is expected to take time, he said.
Petrochemicals are set to account for more than a third of the growth in world oil demand to 2030, and nearly half the growth to 2050, adding nearly 7 million barrels of oil a day by then, the IEA said.
“Our economies are heavily dependent on petrochemicals, but the sector receives far less attention than it deserves,” said Fatih Birol, the IEA’s executive director.
“Petrochemicals are one of the key blind spots in the global energy debate, especially given the influence they will exert on future energy trends. In fact, our analysis shows they will have a greater influence on the future of oil demand than cars, trucks and aviation.”
Demand for plastics – the key driver for the petchem industry – has outpaced all other bulk materials (such as steel, aluminum, or cement), nearly doubling since 2000, the agency estimates.
SABIC eyes Africa expansion as profits rise
SABIC eyes Africa expansion as profits rise
- Prices and volumes rise in third quarter
- Global demand shows positive trend
Saudi Arabia’s industrial output rises 10.4% in November: GASTAT
RIYADH: Saudi Arabia’s industrial output rose at its fastest rate in months, climbing 10.4 percent year on year in November, supported by stronger manufacturing activity and higher oil production, official data showed.
The Industrial Production Index increased to 114.4, up from 103.6 a year earlier, according to the General Authority for Statistics, though the index slipped 0.7 percent from October.
The latest figures highlight continued momentum in the Kingdom’s industrial sector as Saudi Arabia pursues economic diversification under its Vision 2030 agenda.
In its latest report, GASTAT stated: “Preliminary results indicate an increase of 10.4 percent in the IPI in November 2025 compared to the same month of the previous year, supported by the rise in mining and quarrying activity, manufacturing activity and water supply, sewerage and waste management and remediation activities.”
The sub-index of mining and quarrying activity increased by 12.6 percent year on year in November, supported by Saudi Arabia’s decision to raise oil production to 10.1 million barrels per day, compared to 8.9 million bpd a year earlier.
Manufacturing activity rose by 8.1 percent compared to November 2024, driven by a 14.5 percent increase in the production of coke and refined petroleum products. The manufacture of chemical products also recorded a 10.9 percent annual rise.
In contrast, the sub-index of electricity, gas, steam, and air conditioning supply declined by 4.3 percent year on year, while water supply, sewerage and waste management and remediation activities rose by 10.2 percent.
On a month-on-month basis, the overall IPI fell by 0.7 percent in November.
Mining and quarrying activity rose by 0.5 percent from October, while manufacturing activity edged up by 0.3 percent.
However, electricity, gas, steam, and air conditioning supply recorded a sharp monthly decline of 28.6 percent. Water supply, sewerage and waste management and remediation activities fell by 3.1 percent over the same period.
Overall, the index of oil activities advanced by 12.9 percent year on year in November, while non-oil activities increased by 4.4 percent.
Compared to October, oil activities rose by 0.4 percent, while non-oil activities declined by 3.4 percent.
The IPI measures changes in industrial output based on the International Standard Industrial Classification framework and covers mining, manufacturing, utilities, and waste management sectors.
