Aramco’s chemicals JV Sadara sees losses of $228m as higher feedstock costs bite 

The losses were caused by lower average selling prices and higher production costs (File)
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Updated 07 November 2022
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Aramco’s chemicals JV Sadara sees losses of $228m as higher feedstock costs bite 

RIYADH: Sadara Chemical Co., a joint venture between oil firm Saudi Aramco and US company Dow Chemical Co., suffered huge losses in the first nine months of 2022 on the back of higher feedstock prices.

Losses of the giant JV reached SR893 million ($238 million), compared to a net profit of SR2.9 billion in the same period the year before, a bourse filing showed. 

This was coupled with revenue drops of SR12 billion during the nine-month period, a decline of 11 percent from the same period in 2021. 

The losses were caused by lower average selling prices and higher production costs due to higher feedstock prices, resulting in margin compression; despite this, Sadara continued to deliver higher volumes, it said. 

In addition, the company realized a modification gain of SR1.05 billion from debt reprofiling. 


Saudization rates in marketing, sales professions announced

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Saudization rates in marketing, sales professions announced

RIYADH: Saudi Arabia’s Ministry of Human Resources and Social Development has announced the issuance of two decisions to increase Saudization rates in marketing and sales professions.

This comes as part of the ministry’s efforts to enhance the participation of national talent in the labor market, raise the level of Saudization in specialized professions, and provide stimulating and productive job opportunities for Saudi citizens across the Kingdom.

The first decision stipulates raising the Saudization rate to 60 percent in marketing professions in the private sector, effective Jan. 19, 2026. It applies to establishments with three or more employees in marketing professions, with a minimum wage of SR5,500 ($1,466). 

The targeted professions include: marketing manager, advertising agent, and advertising manager, as well as graphic designer, advertising designer, and public relations specialist. They also include advertising specialist and marketing specialist, as well as public relations manager and photographer.

The decision will be implemented three months after the announcement date to allow establishments sufficient time to prepare and implement it.

The second decision stipulates raising the Saudization rate to 60 percent in sales positions within the private sector, effective Jan. 19, 2026. This applies to establishments with three or more employees in sales roles, including: sales manager, retail sales representative, and wholesale sales representative as well as sales representative, IT and communications equipment sales specialist, and sales specialist. They also include a commercial specialist and a goods broker.

The decision will take effect three months after the announcement date to allow targeted establishments time to fulfill the requirements and achieve the Saudization target.

The entity clarified that private sector establishments will benefit from a package of incentives offered by the Ministry of Human Resources and Social Development, including support for recruitment, training and development, and employment, as well as job stability and priority access to Saudization support programs and programs of the Human Resources Development Fund.

The ministry also confirmed that its decision to raise Saudization rates in marketing and sales professions was based on analytical studies of labor market needs, in line with the number of job seekers in related specializations and the current and future requirements of the sales and marketing sectors.

It noted that implementing these decisions would enhance the attractiveness of the labor market, contribute to increasing quality job opportunities, and promote job stability for Saudi nationals.

The ministry further published the procedural guide for the two decisions on its website, which includes details of the targeted professions, the mechanisms for calculating Saudization rates, and the required compliance steps.

It urged all covered establishments to comply with the implementation to avoid penalties and to take advantage of the grace period provided for preparation and fulfillment of the requirements.