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SABIC Profits Exceed 16%

SABIC press conference in Riyadh
SABIC press conference in Riyadh
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SABIC Profits Exceed 16%

SABIC press conference in Riyadh
SABIC press conference in Riyadh

Saudi Basic Industries Corp. (SABIC) announced Sunday that its full-year profit rose about 16.87 percent to $5.7 billion.

Speaking at the press conference to announce the company’s financial results of 2018, Chief Executive Yousef al-Benyan indicated that SABIC expects to face challenges this year due to uncertainty over the impact of a global trade war on the United States and China.

“We’ve seen stabilization for some of the prices, still there are some challenges ahead of us,” Benyan stated.

Benyan also announced that SABIC’s biggest shareholder, the Public Investment Fund (PIF), is in talks to sell its majority stake to Aramco, describing the move as “positive”. Any further details are a matter for PIF and Aramco, he added.

“We are part of the global economic system, we are always affected by challenges but we are able to adapt to these challenges in the best way.”

The CEO also indicated that SABIC is still working on achieving its 2025 strategy visions through various alliances with international companies. He added the company will determine later if it needs to increase its 24.99 percent stake in Switzerland’s Clariant after the two companies decided to merge their high-performance materials businesses.

He said SABIC will continue to raise its presence in Africa, as it is seen as a very promising market.

He pointed out that a decline in petrochemical prices had significantly impacted the profitability in the fourth quarter compared to profits in the previous period of the year.

Benyan noted that SABIC's year-end pricing challenge did not discourage its focus on continued business transformation and operational excellence while achieving long-term strategic growth objectives.

Total revenue reached $45 billion, an increase of 12.9 percent from the previous year. Earnings per share reached $1.9, an increase of 17 percent over last year. Net profit for the fourth quarter was $ 850 million, down 12.43 percent from the same period last year and a decrease of 46.88 percent compared to the third quarter of 2018.

The company said that the results reflected an improvement in the average selling price of SABIC products, as well as the success of the corporate-led transformation initiatives to enhance their competitiveness globally.

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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)

Dr. Abdul Hakim Elwaer, Assistant Director-General of the Food and Agriculture Organization (FAO), stated that the organization will take an active role at COP16, the UN conference on combating desertification, scheduled to take place in Saudi Arabia in early December.

In remarks to Asharq Al-Awsat, he expressed confidence that the conference—the first of its kind in the Middle East—would produce significant outcomes.

Elwaer’s comments came during a roundtable organized by FAO’s regional office in Cairo, attended by a select group of media representatives. The session focused on FAO’s participation in the upcoming conference and the importance of the Rio Trio —the integrated framework of the three major UN conventions addressing climate change, biodiversity conservation, and desertification.

Fida Haddad, FAO’s Program Officer for Land Rehabilitation and Climate Change, highlighted the interconnectedness of the three conventions and noted that COP16 would place a strong emphasis on land and water rehabilitation and their sustainable management.

Haddad pointed out that approximately 90% of the Middle East is affected by arid conditions. Despite this, local communities and Arab governments have made notable progress in addressing desertification and drought. She also announced that, for the first time, FAO has successfully placed food systems on the COP16 agenda, enabling discussions on how land rehabilitation can enhance food supply chains and systems.

Elwaer underscored FAO’s central role in achieving the second Sustainable Development Goal (SDG): eradicating hunger. He emphasized that FAO actively engages in the UN conventions on climate change, biodiversity, and desertification, which collectively contribute to this mission.

FAO’s focus, according to Elwaer, is on transforming food and agricultural systems to become more inclusive, efficient, and sustainable, aiming for better production, nutrition, and livelihoods. He highlighted the organization’s success in integrating these priorities into the agendas of the three conventions and collaborating with host countries on joint initiatives.

He further noted that Saudi Arabia’s hosting of COP16 is particularly significant for the region, which faces pressing challenges such as water scarcity, desertification, and food insecurity. The conference presents an opportunity for Middle Eastern nations to highlight these issues, explore solutions, and ensure their inclusion in global environmental discussions, not only at this event but in future COP sessions, he underlined.

Elwaer emphasized the growing global attention on desertification, as it is now impacting regions previously unaffected, such as southern Europe and parts of Latin America. These areas are witnessing alarming declines in arable land and forests, prompting them to seek lessons from the Arab world, which has developed resilience strategies to combat desertification over centuries.

FAO will have a strong presence at COP16, with two dedicated pavilions—one in the Blue Zone for official delegations and another in the Green Zone to engage civil society and conference participants, he said.

He added that in collaboration with Saudi Arabia and the UN, FAO will lead coordination on Food Day and Governance Day, scheduled for December 5 and 6, respectively. The organization will also participate in other specialized sessions throughout the conference.