Saudi Advanced Industries Company (SAIC), established in 1987, as a Saudi Public Joint Stock Company with an authorized capital SR 108 million (in 2007 SAIC increased its Authorized capital from SR 108 million to SR 432 million). SAIC came into existence primarily in response to a call for the private sector to invest in the economic offset program. Thus, one of SAIC’s primary goals has been to be a vehicle for the private sector to participate in projects promoted under that program.
However, SAIC’s role is not limited to investment in economic offset projects; instead, SAIC has diversified to include, but not limited to, the transfer of advanced technology through participation in technically-oriented industrial projects with technology holders and/or with other Saudi industrial companies, as well as to become involved in the promotion and development of industrial projects.
AlSalam Aircraft Co.
Alsalam Aircraft Co. was formed in 1988 under the Saudi Arabian Economic Offset Program. Alsalam is a limited liability company with the ownership structure consisting of Boeing Industrial Technology Group (BITG) (50%), Saudi Arabian Airlines (25%), Saudi Advanced Industries Company (10%), Gulf Investment Company (10%), and the National Industrialization Company (5%). It is located in Industrial Park at the King Khalid International Airport north of Riyadh, the capital of Saudi Arabia. Operating from its state-of-the-art facilities, Alsalam provides comprehensive technical services to operators of wide body and narrow body commercial aircraft, business jets and VIP aircraft. These services include maintenance and modifications, system upgrades, aircraft painting, and VIP aircraft interior design and refurbishments.
Arabian Industrial Fibers Co.(Ibn Rushd )
Ibn Rushd was established in February, 1993 as a limited liability company and thereafter converted to a joint stock company in December, 1995. SABIC, promoter of the project, owns about 49% of the shares of the company and remaining shared among several companies in the region.
The complex is located in Yanbu Industrial city and it consists of 3 integrated plants, namely:
Ibn Rushd produces different types of aromatic products. Paraxylene and Benzene are the two basic products. In addition, there is a possibility of producing other series such as Ortho-xylene and the Meta-xylene. The liquidated petroleum gas is used as a primary feedstock in a process that depends on a modern technology called Cyclar.
In this phase the Purified Terephthalic Acid (PTA) is manufactured from Paraxylene and Acetic acid.
Polyester staples are produced by the reaction of PTA with the ethylene glycol through several production lines giving way to producing different types of polyester that include:
- Staple fiber for textiles
- Filament yarn
- Carpet fiber
- Bottle grade resin
Gulf Salt Co.
Gulf Salt Co. was established in 1995 incorporating the most state-of-the-art technology and expertise available in the field of salt refining. The strategic location of the refinery in the Eastern Province of Saudi Arabia enables the company servicing of clients in the region, with their high purity salt products within the shortest delivery time frame.
Industrialization & Energy Services Co (TAQA).
Industrialization & Energy Services Co., is a Saudi joint stock company established in May 2003, owned 40% by the Saudi Government and the remainder by several Saudi private sector companies. The objectives of the company are to establish industries and/or services related to petroleum, metals, petrochemicals, electrical and water desalination industries, either directly or through establishment of subsidiaries specialized in relevant sector(s)
Yanbu National Petrochemicals Co.(YANSAB)
Yanbu National Petrochemicals Company is a Saudi Joint Stock company established in May 2005. The project is a SR 15 billion venture, promoted by SABIC, to manufacture a wide range of basic chemical, intermediate and polymer products. SABIC holds 55% of the company shares and the remaining by other companies and individuals.
The complex is under construction in Yanbu and is expected to be operational in the beginning of year 2008. Initial annual production capacity will go beyond 4 million metric tons yearly (mty) of petrochemical products. YANSAB will apply the latest state-of the art and cutting-edge technologies in its production operations. The complex will apply for the first time a new technology for the manufacture of HDPE and other technologies for conversion of pure aromatic compounds into benzene. Once operational, this mega project will employ 1,500 employees, benefiting Saudi citizens.
YANSAB will be one of the world's largest plants. It plans to produce 1.3 million MTY of ethylene; 400,000 MTY of propylene; 900,000 MTY of high density polyethylene (HDPE) and low density polyethylene (LLDPE); 400,000 MTY of polypropylene (PP); 700,000 MTY of mono ethylene glycol (MEG); 250,000 MTY of benzene, xylene and toluene compound.
Obaikan Glass Company
Obaikan Glass Company (OGC), is a Saudi closed joint stock company established in September 2007, owned 40% by the Saudi Advanced Industries company (SAIC) of the company capital of 200 million Saudi riyals, Obaikan glass company will be specialized in the manufacture of flat glass with production capacity amounting to 800 tons per day which is equivalent to 292 thousand tons a year of various types of flat glass.
SABIC creates new venture capital arm to invest in companies with innovative technologies
The Saudi Basic Industries Corporation (SABIC) has announced the launch of a new global corporate venture capital arm, SABIC Ventures, in the Netherlands, with the primary goal of seeking out innovative technologies and businesses consistent with the company’s global strategy.
SABIC Ventures aims to build up a portfolio of technology options for the company’s future businesses. It will do this by investing directly both in seed stage, early stage and late stage companies. The new organization will both lead investment, co-lead and invest alongside venture capitalists.
Commenting on the launch of the organization, Mohamed Al-Mady, SABIC Vice Chairman and CEO, said that SABIC Ventures has been developed as an investment vehicle to accomplish profitable growth. “SABIC aspires to be the preferred leader in chemicals. We will accomplish this through organic growth by investing in new assets and expanding current assets; mergers and acquisitions in targeted areas; and new business creation. Venturing provides growth opportunities for new businesses.”
SABIC Ventures will be funded by an Innovation Fund, which will be managed by the organization. The Fund will cover investments in start-up companies. Amongst the areas which have been designated for investments are advanced materials and composites; alternative feedstocks for chemicals and materials; and alternative energy and cleantech. At the same time, the organization will be constantly exploring new areas of interest.
The targeted countries for sourcing venturing investments are the USA, Europe and Asia. “The organization will have a global reach. We are building a global organization with deal flow and investment management support from all over the world,” Al-Mady said.