Strengths:

1. SABIC is the 10
th
largest petrochemical company in the world.

1. World's market leaders in the production of polyethylene, polypropylene and other advanced
thermoplastics, glycols, methanol and fertilizers.
2. Comprehensive portfolio of chemical products addressing diverse customer base and global presence in
40 countries
3. Significant research and development with 17 dedicated Technology & Innovation facilities across the
globe.
4. Strong Customer Value Enhancement policies through customized process-oriented solutions
5. Nearly 40,000 employees form a part of the workforce
6. Strong backing by the Saudi govt makes it a strong player





Extremely low cost positions predominantly thanks to competitively priced
feedstock from Saudi Aramco.
Very high and resilient profitability of Saudi petrochemical and fertilizer
plants.
Large-scale plants following completion of a major investment phase.
Sovereign ownership, which helps with raw material supplies, funding, and
infrastructure.
Robust credit metrics and free operating cash flow, and moderate debt.
-existing distribution and sales networks
-domestic market
-skilled workforce
-reduced labor costs
-high profitability and revenue
-experienced business units


Corporate Credit Rating

Weaknesses:
1. Analysts are concerned with SABICs declining market share and deteriorating
profitability ratios.

1. Dumping allegations by countries like India, Turkey hamper brand image
2. Turbulent relationship with subsidiaries on Sublicensing overcharging issues
3. Weak supply chain than can affect the efficiency of SABICs network

Limited geographic diversity with the lion's share of profits stemming from Saudi Arabian production.
Profit volatility and cyclicality related to the petrochemicals industry.
High dividends and group complexity from minority shareholders.
-competitive market
-investments in research and development
-future competition
-small business units
-unknown
-high loan rates are possible
-tax structure