Saudi Basic Industries Corporation

Saudi Basic Industries Corporation or Sabic as it is widely known, is the largest non-oil company in the Middle East and represents around five per cent of the world's petrochemicals market.

These are good times for any company related to the energy sector, and Sabic is no exception. First quarter profits for 2003 rocketed 358% to $372 million on a 21% increase in production volume.

Founded in 1976 to develop heavy industries in the kingdom, Sabic also regularly ranks as the most valuable company in the Middle East by market capitalization and is the top quoted stock on the Saudi Stock Exchange, although 70% of its equity is still state-owned.

Not surprisingly the company's fortunes have been linked to the abundant oil and gas feedstock available in Saudi Arabia, the world's No1 oil exporter. There has also been huge capital investment in Sabic plant and equipment which is often to the highest world standards.

Sabic intends to grow by five to ten per cent per annum over the next four years. It has a $2bn olefins complex under construction in Jubail and is planning another massive olefins installation for Yanbu.

The company also made the largest-ever foreign acquisition by a Saudi group last year with the acquisition of DMS Petrochemicals, and seems likely to make further investments abroad with China an obvious target.

This year has certainly started well, and could be a record year for Sabic. But 2002 was also remarkable for a 60% rise in profits to $759 million and 18% growth in sales to $9 billion.