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SABIC Purchases Clariant’s 50% Share in Scientific Design

Subject to regulatory approval, expected in mid-2022, the transaction will give SABIC full ownership of Scientific Design
Subject to regulatory approval, expected in mid-2022, the transaction will give SABIC full ownership of Scientific Design
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SABIC Purchases Clariant’s 50% Share in Scientific Design

Subject to regulatory approval, expected in mid-2022, the transaction will give SABIC full ownership of Scientific Design
Subject to regulatory approval, expected in mid-2022, the transaction will give SABIC full ownership of Scientific Design

Saudi Arabia’s SABIC has signed an agreement to purchase Clariant’s 50 percent stake in specialties company Scientific Design, currently a 50/50 joint-venture with SABIC.

Subject to regulatory approval, expected in mid-2022, the transaction will give SABIC full ownership of Scientific Design, which is a leading licensor of high-performance process technologies and catalysts producer.

The move is aimed at securing a greater share of the Specialties market. Last year, SABIC repositioned its Specialties division as a stand-alone strategic business unit to unlock organic and inorganic growth opportunities that are independent of feedstock dynamics.

SABIC Vice Chairman and CEO Yousef Al-Benyan said: “Catalysts are the foundation of our business. The acquisition of Scientific Design will strengthen our non-cyclical technology-oriented specialty business and move us closer to our long-term goal of becoming a global Specialties leader.”

“This is a growing global market and the Middle East region alone sources nearly $1.5 billion worth of catalysts per year. We recognize the opportunity to help meet increasing catalyst demands, increase security of supply and the level of innovation with the sector.”

With its key manufacturing plant and business headquartered in New Jersey, US, Scientific Design has operated as a joint venture for almost 20 years following SABIC’s 50 percent acquisition of the business in 2003. Employing more than 170 people globally, it is a leading licensor of high-performance process technologies and a developer of catalysts that are used in over 100 plants across more than 30 countries.

Scientific Design is a recognized leader and a strategic fit for SABIC that can strengthen and complement the high-performance capabilities of SABIC’s Specialties business. For almost 20 years, it has thrived as a SABIC joint venture securing a position at the forefront of innovation and sustainability in the chemical industry. By fully aligning mutual strengths SABIC can realize new growth potential.

SABIC’s Specialties business produces highly differentiated products which include specialty engineering thermoplastic resins and compounds, composites, thermosets & additives, and additive manufacturing solutions as well as catalyst and process technologies.

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Saudi Arabia’s 2025 Budget Projects Revenues of $315.5 Bn

The Saudi government affirmed its commitment to adopting strategic expansionary spending policies that support economic diversification and sustainable growth (Asharq Al-Awsat)
The Saudi government affirmed its commitment to adopting strategic expansionary spending policies that support economic diversification and sustainable growth (Asharq Al-Awsat)
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Saudi Arabia’s 2025 Budget Projects Revenues of $315.5 Bn

The Saudi government affirmed its commitment to adopting strategic expansionary spending policies that support economic diversification and sustainable growth (Asharq Al-Awsat)
The Saudi government affirmed its commitment to adopting strategic expansionary spending policies that support economic diversification and sustainable growth (Asharq Al-Awsat)

Saudi Arabia is forecasting total revenues of SAR1.184 trillion ($315.5 billion) for 2025, with expenditures expected to reach SAR1.285 trillion ($342 billion).

This would result in a projected deficit of SAR101 billion, driven by expansionary spending policies to support economic growth, according to the preliminary budget statement.

The economy is anticipated to grow by 4.6%, a rise from just 0.8% in 2023, with non-oil sectors expected to expand by 3.7%.

Finance Minister Mohammed Al-Jadaan reiterated the commitment to increase spending on essential services and execute strategic projects. He stated that the positive economic outlook reflects Saudi Arabia’s dedication to its ambitious plans.

For the current year, the Kingdom expects revenues and expenditures of SAR1.23 trillion and SAR1.35 trillion, respectively, which could lead to a deficit of SAR118 billion.

According to the preliminary budget statement from Saudi Arabia’s Ministry of Finance, total revenues for the fiscal year 2025 are expected to be around SAR1.184 trillion, rising to about SAR1.289 trillion by 2027.

Total expenditures for 2025 are estimated at approximately SAR1.285 trillion, increasing to around SAR1.429 trillion by 2027.

The statement highlighted that, due to ongoing economic developments and various financial initiatives, Saudi Arabia expects a budget deficit of about 2.3% of GDP for the fiscal year 2025. This deficit is part of efforts to improve stability and sustainability in the state budget.

It noted growth in GDP, primarily driven by non-oil sectors, which have bolstered industries like tourism, entertainment, transportation, logistics, and manufacturing.

This growth has improved quality of life, supported the private sector, and lowered unemployment to historic lows, positively impacting forecasts from international organizations and credit rating agencies.

For 2024, the report projects a real GDP growth rate of 0.8%, with non-oil sectors expected to grow around 3.7%.

Recent drops in interest rates are likely to boost demand and further support economic growth. Preliminary estimates also suggest that inflation could reach about 1.7% by the end of 2024.