Mohammed H. Al-Mady

1
Role of Primary Industrial Projects in the
National Economy

• By
• Mohammed H. Al-Mady
• Vice Chairman Managing Director

2
Agenda

• Global Petrochemical Trends.
• Migration to The Best Cost Locations.
• Evolution to Higher Value Downstream Products.
• Impact on Saudi Arabian Economy.
• Saudi Arabias Investment Prospects.
• Saudi Arabias Current Situation.
• Future Saudi Arabia Business Development
  Prospects.
• Partnership Financial Track Record

3
Agenda

• Global Petrochemical Trends.

4
Agenda

• Global Petrochemical Trends.
• Migration to The Best Cost Locations.

5
Chart 1
FOR PAST 15 YEARS, GLOBAL PETROCHEMICAL INDUSTRY
MIGRATING TO DEVELOPING REGIONS...
DEVELOPING REGION CAPACITY HAS BEEN EXPANDING 4x
FASTER THAN IN TRADITIONAL MAJOR MARKETS.
6
Chart 2
INDUSTRY MIGRATION TO DEVELOPING REGIONS PARTLY
REFLECTS THEIR FASTER ECONOMIC GROWTH ...
PROJECTED TO CONTINUE FOR AT LEAST NEXT DECADE.
7
Chart 3
INDUSTRY MIGRATION ESPECIALLY ENCOURAGED BY THE
DEVELOPING REGION'S ENERGY RESOURCES ...
PARTICULARLY IN MID-EAST AND SAUDI ARABIA.
8
Chart 4
INDUSTRY TRENDS SEEM FAVORABLE FOR MID EAST
COMPARED TO OTHER DEVELOPING REGION PRODUCERS
AND SAUDI ARABIA SEEMS WELL PLACED WITHIN MID
EAST.
9
Chart 5
MIGRATION TO DEVELOPING REGIONS EXPECTED TO
CONTINUE
WITH MID-EAST AND SAUDI ARABIA AS MAJOR
BENEFICIARIES.
10
Agenda

• Global Petrochemical Trends.
• Migration to The Best Cost Locations.
• Evolution to Higher Value Downstream Products.

11
Chart 5
MIGRATION TO DEVELOPING REGIONS EXPECTED TO
CONTINUE
WITH MID-EAST AND SAUDI ARABIA AS MAJOR
BENEFICIARIES.
12
Agenda

• Global Petrochemical Trends.
• Migration to The Best Cost Locations.
• Evolution to Higher Value Downstream Products.
• Impact on Saudi Arabian Economy.

13
Chart 6
PRIMARY MANUFACTURING HAS GROWN RAPIDLY...
...WITH AN INDIRECT 'MULTIPLIER' EFFECT ESTIMATED
AT 5-8x ON DIVERSIFYING ECONOMY AS A WHOLE.
14
Chart 7
CHEMICAL INDUSTRY EXPANSION PROVIDES SOLID
FOUNDATION FOR MANUFACTURING GROWTH...
...BY UTILIZATION OF 'STRANDED' GAS RESOURCES.
15
Chart 8
CHEMICAL INDUSTRY EXPANSIONS HAVE 'BEGUN' TO
DIVERSIFY AND EXPAND TRADE...
16
Agenda

• Global Petrochemical Trends.
• Migration to The Best Cost Locations.
• Evolution to Higher Value Downstream Products.
• Impact on Saudi Arabian Economy.
• Saudi Arabias Investment Prospects.

17
Agenda

• Global Petrochemical Trends.
• Migration to The Best Cost Locations.
• Evolution to Higher Value Downstream Products.
• Impact on Saudi Arabian Economy.
• Saudi Arabias Investment Prospects.
• Saudi Arabias Current Situation.

18
Chart 4
INDUSTRY TRENDS SEEM FAVORABLE FOR MID EAST
COMPARED TO OTHER DEVELOPING REGION PRODUCERS
AND SAUDI ARABIA SEEMS WELL PLACED WITHIN MID
EAST.
19
Agenda

• Global Petrochemical Trends.
• Migration to The Best Cost Locations.
• Evolution to Higher Value Downstream Products.
• Impact on Saudi Arabian Economy.
• Saudi Arabias Investment Prospects.
• Saudi Arabias Current Situation.
• Future Saudi Arabia Business Development
  Prospects.

20
Agenda

• Global Petrochemical Trends.
• Migration to The Best Cost Locations.
• Evolution to Higher Value Downstream Products.
• Impact on Saudi Arabian Economy.
• Saudi Arabias Investment Prospects.
• Saudi Arabias Current Situation.
• Future Saudi Arabia Business Development
  Prospects.
• Partnership Financial Track Record.

21
(No Transcript)
22
Chart 10
20 YEARS AGO, SEVERAL GOALS ESTABLISHED FOR SABIC
AND PRIMARY INDUSTRIAL DEVELOPMENT IN THE
KINGDOM...
20 YEARS LATER, GOALS ARE NOT MUCH DIFFERENT.
WHAT IS DIFFERENT IS THE KINGDOM'S ABILITY TO
SHOW INVESTORS A TANGIBLE TRACK RECORD OF
INDUSTRIAL DEVELOPMENT SUCCESS.
23
(No Transcript)