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Aramco CEO to Asharq Al-Awsat: SABIC Deal to Achieve Highest Possible Value on Each Oil Barrel

Saudi Aramco confirms that the acquisition will enable SABIC to invest in growth projects on a very large scale
Saudi Aramco confirms that the acquisition will enable SABIC to invest in growth projects on a very large scale
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Aramco CEO to Asharq Al-Awsat: SABIC Deal to Achieve Highest Possible Value on Each Oil Barrel

Saudi Aramco confirms that the acquisition will enable SABIC to invest in growth projects on a very large scale
Saudi Aramco confirms that the acquisition will enable SABIC to invest in growth projects on a very large scale

Saudi Aramco's Chief Executive Amin Nasser revealed that the company has completed its purchase of a 70 percent stake in petrochemicals company Saudi Basic Industries Corp (SABIC) as part of its downstream strategy.

The strategy is linked to factors including climate change and the need to find sustainable markets for demand, especially in the petrochemical sector, Nasser noted.

He told Asharq Al-Awsat that the executed deal will provide opportunities to promote harmonization and complementarity between the Saudi Aramco outputs of hydrocarbons that are used at SABIC factories to produce petrochemicals.

This leads to generating growth opportunities and achieving the highest possible value of each barrel produced by Aramco.

Nasser added in the answers received by Asharq Al-Awsat that it is important to look at this acquisition deal on a long-term basis.

The largest percentage of oil use today - according to Nasser - takes place in the transport sector, whether land, sea or air, which, with the growing climate change challenge, is forced to tap into markets outside the transport sector.

The petrochemical sector, on the other hand, is promising.

Nasser, in press statements, had expressed that Saudi Aramco will use cash and debt to pay its dividend of $18.75 billion for the first quarter of this year.

“It will be a combination of both,” Nasser told reporters on a conference call.

“We would like to use our free cash definitely most of time, but other debt instruments from banks or bonds are also available for us as we have a strong balance sheet,” he said.

Nasser was speaking a day after Aramco completed its purchase of a 70 percent stake in SABIC from Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), for $69.1 billion and extended the payment period by three years to 2028.

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Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
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Saudi Arabia Makes History with Adoption of Riyadh Treaty on Design Law

Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)
Photo of the Riyadh Diplomatic Conference on the Design Law Treaty (Asharq Al-Awsat)

Saudi Arabia has made history by uniting the 193 member states of the World Intellectual Property Organization (WIPO) to adopt the Riyadh Treaty on Design Law. This landmark achievement, realized after two decades of deliberation, underscores the Kingdom’s leadership in enhancing the global intellectual property system.

The announcement came at the conclusion of the Riyadh Diplomatic Conference on the Design Law Treaty, a rare event for WIPO, which has not held a diplomatic conference outside Geneva for more than a decade. It was also the first such event hosted in Saudi Arabia and the Middle East, representing the final stage of negotiations to establish an agreement aimed at simplifying and standardizing design protection procedures across member states.

Over the past two weeks, intensive discussions and negotiations among member states culminated in the adoption of the Riyadh Treaty, which commits signatory nations to a unified set of requirements for registering designs, ensuring consistent and streamlined procedures worldwide. The agreement is expected to have a significant positive impact on designers, enabling them to protect their creations more effectively and uniformly across international markets.

At a press conference held on Friday to mark the event’s conclusion, CEO of the Saudi Authority for Intellectual Property Abdulaziz Al-Suwailem highlighted the economic potential of the new protocol.

Responding to a question from Asharq Al-Awsat, Al-Suwailem noted the substantial contributions of young Saudi men and women in creative design. He explained that the agreement will enable their designs to be formally protected, allowing them to enter markets as valuable, tradable assets.

He also emphasized the symbolic importance of naming the convention the Riyadh Treaty, stating that it reflects Saudi Arabia’s growing influence as a bridge between cultures and a global center for innovative initiatives.

The treaty lays critical legal foundations to support designers and drive innovation worldwide, aligning with Saudi Arabia’s vision of promoting international collaboration in the creative industries and underscoring its leadership in building a sustainable future for innovators.

The agreement also advances global efforts to enhance creativity, protect intellectual property, and stimulate innovation on a broader scale.

This achievement further strengthens Saudi Arabia’s position as a global hub for groundbreaking initiatives, demonstrating its commitment to nurturing creativity, safeguarding designers’ rights, and driving the development of creative industries on an international scale.

The Riyadh Diplomatic Conference, held from November 11 to 22, was hosted by the Saudi Authority for Intellectual Property and attracted high-ranking officials and decision-makers from WIPO member states.