Sabic has partnered with nine more global companies to promote the introduction of industry-leading technologies into Saudi Arabia, create new jobs, and help the ongoing localisation drive.

During the annual meeting of Sabic Home of Innovation at the Riyadh Techno Valley, the participants were updated on the performance and achievements of the Home of Innovation in 2017, and were briefed on its 2018 strategy. They were introduced to Sabic’s Nusaned initiative, which was launched earlier this year to support Saudi Arabia’s local content development plans and contribute to the realisation of Saudi Vision 2030.

Yousef Al Benyan, Sabic vice chairman and CEO, stressed the importance of the Home of Innovation meeting in enhancing its role as a platform to help localise global technologies and strengthen business relationships to attract both local and global investments.

Al Benyan: stressing on localisation

Al Benyan added that the success of the initiative can be clearly gauged from the fact that more participants have joined hands with Sabic to contribute towards Saudi Arabia’s aim of transforming into a knowledge economy. This is in line with Sabic’s 2025 strategy that views innovation as a key element in developing new businesses and help advance Saudi Arabia’s growth plans, he said.

The meeting discussed the opportunities offered by the Home of Innovation to its global participants, as part of a cooperative matrix involving 42 companies from nine countries. The initiative provides them an attractive investment environment and an opportunity to take part in mega projects in various sectors in Saudi Arabia, such as construction, energy, transportation, and consumer goods.

The new participants later visited the Home of Innovation Demonstration House and learned about advanced energy-efficient solutions that help save up to 40 percent of the energy consumed by it.

Since its launch in May 2016, the Home of Innovation has helped in creating more than 20 investment opportunities. It received more than 4,000 visitors and held more than 30 workshops on key subjects ranging from business, innovation, and investment.

Earlier, Al Benyan also said that Sabic is studying opportunities to access the African market and set up new plants there as it seeks to seize investment opportunities overseas.

“We are studying feasibility of some opportunities to set up plants in Africa...there are three countries being considered,” Al Benyan told a news conference.

Away from Africa, the company has merger and acquisition targets in the United States, Europe and some parts of China, he said, adding that he hoped some of these deals would materialise this year.

Sabic, the world’s fourth-biggest petrochemicals company, reported a 5.4 per cent rise in net profit for the first quarter ended March 31.

Net profit rose to SR5.51 billion ($1.47 billion) from SR5.23 billion a year earlier. Gross sales rose 15 per cent to SR41.86 billion while production rose 7 per cent.

The company’s results are closely tied to oil prices and economic growth as its plastics, fertilisers and metals are used extensively in the construction, agriculture, industrial and consumer goods
sectors. Al Benyan said the positive outlook for the global economy and a rise in oil prices as well as the kingdom’s expansionary budget would help the petrochemicals sector.

In February, sources told Reuters Sabic had recently secured a $3 billion bridge loan to meet its ongoing financial requirements.