Prioritizing the Head over the Tail, Necessitate Saudi Enterprises to Go more Positive, abroad

There are distinctive major Saudi companies that work efficiently and sustainably, to be in tandem with globalization trends, attain leadership and to secure competitive edge, in the foreign market, by providing them with high-quality products, that are in high demand in various sectors.

In this intervention, I will review three giants Saudi conglomerates (National Champions) and their role, in laying rock-solid grounds to attain world leadership.

Among the most important of these companies is the Saudi Basic Industries Corporation (SABIC), which enjoys a strong and growing presence in the world, including the two Americas hemisphere, where the company’s regional center is located in Houston, Texas, US.

In addition, it has 14 factories spread across other 6 US states.

It has factories in Canada, Argentina, Mexico, and Brazil, too.

SABIC also owns as many as five research and development centers, in various locations, in the US, including a large technology center, in Houston, as well as administrative offices throughout the region.

Coming to the old continent, SABIC has also branches in the Netherlands, with a strong workforce of as much as 6,000 employees.

The company has 10 manufacturing sites and 40 offices with another 3,000 employees, in Asia, including China, India, Japan, South Korea, Singapore and Thailand.

Established in 1977 with the aim of investing and transforming the Kingdom’s hydrocarbon and mineral resources into industrial products, with high added value.

Thus, SABIC contributes to the development of the agricultural, construction and manufacturing sectors, as well as diversifying the sources of national income and strengthening fundamentals of the Saudi economy.

SABIC is the 5-th largest petrochemical company, in the world, and among the largest state-owned enterprises, in the Middle East, in general, and the Gulf, in particular.

It is listed on Tadawul, the Saudi stock exchange.

For many years, SABIC has, successfully, managed to, fairly and squarely, sit in the “Financial Times” list, among the 500 largest companies, in the world, in terms of market value. In 2017, SABIC ranked 4th in the world, among the chemical industry heavy weights, according to the annual ranking of “Fortune Global 500” list. About 70% of SABIC shares are owned by the Saudi oil conglomerate, Aramco.

When we turn to Saudi Aramco, the largest global energy entity, administering oil and natural gas activities, as well, and enjoying strong presence in the three major energy markets: Asia, Europe and North America.

its shares have, recently, risen with the soaring crude as well as products prices, in global markets, increasing its market value in the Year 2021, to about $2 trillion.

Subsequently, Saudi Aramco ranked 3rd in the classification of international companies, in terms of market capitalization.

Aramco’s vision is demonstrated in its commitment to support energy efficiency and effectively address the global challenge of reducing emissions, towards realizing the NZE.

It also provides the world market with energy products’ mix, in a sustainable manner, with the aim of changing the world for the better, through the production of gas and oil, in a smarter way.

Especially with the adoption of the technologies of the 4th industrial revolution.

King Salman Energy City “SPARK”, launched by Saudi Aramco, is the 1st industrial city to achieve a sustainable gold rating, with a distinction, by creating a world-class sustainable ecosystem.

Going, retrospectively, to the largest Saudi companies, we must mention the Saudi Arabian Mining Company “Maaden”, almost the fastest growing mining company, in the world.

It is also the largest multi-commodity mining company, across the Middle East and North Africa.

Ma’aden occupies a prominent position among the top 10 global mining companies’ exclusive club, supported by its market value.

In just a decade, the company has jumped from 128th to the top 11 among the largest mining companies, in the world.

In June of 2018, the Public Investment Fund raised (PIF) raised its stake in Ma’aden, to about 65%.

It is focusing on producing and marketing precious as well as basic products, including gold, copper, phosphates, aluminum and industrial minerals, on a global level, and increasing return on investment.

There are many other giant projects undertaken by Ma’aden, such as the 3rd phosphate project, which will have a total investment of about $6.4 billion, until 2025.

That would be a real feat, placing Saudi Arabia in the second place as the largest producer of phosphate, in the world.

In addition, such a enterprise will also contribute to the stability of the global food security system (in terms of providing agriculture sector with enough fertilizers and composts.)

Maaden is also continuing to study potential acquisition opportunities, abroad, by building its expertise in exploring minerals, such as copper and base metals on a global scale, with an eye-catching example: latest acquisition of Meridian, in Africa.