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Product category: Oil, Gas, Petrochemical Industry News
News Release from: SABIC | Subject: Al-Mady FT Keynote speech
Edited by the Processingtalk Editorial Team on 09 May 2008

SABIC keynote at FT China - Middle East
Summit

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Saudi Basic Industries Corporation (SABIC) Vice Chairman and CEO, Mohamed Al-Mady, gave the keynote speech at the Financial Times China-Middle East Summit, held in Riyadh on 5 May

Speaking on the subject of "Saudi Arabia and China: Natural Partners in the Global Economy" Al-Mady said that the large Saudi Arabian hydrocarbon resources made the Kingdom a "natural strategic trading partner" for the dynamic industrial and economic growth in China He said that the rapidly growing Chinese population provides important markets for the Saudi Arabian growing petrochemical industry

"Saudi Arabia and China are indeed natural trading partners supported by cooperative political ties.

The geographic location of the partners permits an economic pathway for two-way trade," he said.

"With China's growing demand for oil, it is quite natural for China and the Saudi Arabia to trade in crude oil and refined products".

Saudi Arabia is the number one supplier of crude oil to China, providing some 528,000 barrels per day in 2007 and targeting for larger volumes in the future.

Making a comparison between the economies of the West and the East, Al-Mady said "Economic growth statistics and trade balance data indicate that economic momentum is shifting eastward.

China alone has been experiencing GDP growth of 10-12% for a number of years and experienced a positive trade balance of USD265 billion in 2007.

Saudi Arabia, Al-Mady said, has benefited from the growing demand for energy products: crude oil, natural gas, LPG, and refined products while China has benefited from its large exports of manufactured products.

On the growing SABIC business in China, he pointed to the recent Heads of Agreement with Sinopec worth USD1.7 billion to build petrochemical plants in Tianjin.

"This will be the first SABIC joint venture in China and we hope this will lead to more joint ventures and a strong relationship with Sinopec in the important China market," he said.

Speaking about SABIC and globalisation, Al-Mady said that the company made a decision some years ago, to transform itself from a strong regional player to a major global player.

More recently the company strategic plan to the year 2020 sets a target for SABIC to be among the very top tier of companies in the industry, he said.

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