Magazine July 2005
Transcription
Magazine July 2005
News 2 Give glad tidings to those who are patient, those who when afflicted with calamity say “Truly to Allah we belong and truly To Him we shall return” SABIC employees extend their deepest and heartfelt condolences to Custodian of the Two Holy Mosques KING ABDULLAH BIN ABDULAZIZ AL-SAUD and Crown Prince SULTAN BIN ABDULAZIZ AL-SAUD and All members of the Royal Family, citizens of Saudi Arabia and the Arab and Islamic nations May Allah bless his soul and give grace to his family and to all of us Condolence News 3 The late King Fahd Praise be to Allah. From the bottom of our hearts, we pray to Allah to be merciful to the late King Fahd bin Abdulaziz and to place him with the prophets, martyrs and faithful believers. It is a very delicate matter to speak of someone as important as the late King Fahd. He was a one-man nation. He followed the steps of his wise ancestors, kings Abdulaziz, Saud, Faisal and Khalid, may Allah be merciful to them all. With his wisdom, knowledge and insight, he led his nation to its present respected position in the Arab, Islamic and international arenas. By the grace of Allah, the country was able to harvest the fruits of his innumerable accomplishments. He was able to overcome all obstacles and difficulties and make unprecedented historic achievements that are worthy of the pride of everyone. The physical evidence of King Fahd’s accomplishments can be seen in all cities, villages and settlements in the Kingdom. Indisputably, the most important of these accomplishments were the massive expansion projects at the two holy mosques. At the Royal Commission for Jubail and Yanbu (RCJY), the evidence of the late King’s achievements is seen mainly in the two industrial cities of Jubail and Yanbu, the names of which cities are indelibly linked to the name of King Fahd bin Abdulaziz. Today, we harvest the fruits of his initiative at these, the two industrial cities as well as at other places around the Kingdom. His loss is a grievous blow and the entire nation is in pain at the demise of this great leader. However, our pain is eased by the legacy he has left behind. While we pray to Allah to be merciful to him, we also pray to Allah to support his successor, Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz and his Crown Prince. May Allah guide them along the path of righteousness. _ Prince Saud bin Abdullah bin Thunayan Al-Saud Chairman of the RCJY, Chairman of SABIC Condolence News 4 4 A humane leader and a pioneer in the kingdom’s industrial march Late King Fahd bin Abdulaziz was a pioneering figure in the Kingdom’s industrial march, ever since he was the Crown Prince. He was the first chairman of the Royal Commission for Jubail and Yanbu (RCJY), which was established to undertake the development of Jubail and Yanbu cities. These cities have grown to rank among the most advanced industrial centers of the world with ultramodern infrastructure. The establishment of the RCJY coincided with Saudi Aramco’s Master Gas System and the establishment of the Saudi Basic Industries Corporation (SABIC), which formed the third flank of the golden development triangle. SABIC was entrusted with the task of managing and generating investments to tap the Kingdom’s hydrocarbon resources for the benefit of the coming generations. The investments were to be in basic industrial products and were to eventually include both transitional and complementary industries. During his tenure, the industrial sector was given due attention and encouragement and both basic and transitional branches of this sector recorded high growth rates within a record period of time. They helped to diversify the sources of income, change the Saudi economy into a multi-faceted one, and improve the country’s balance of payment. National industrial products have largely satisfied the requirements of the local market. Their high quality has also enabled them to compete in international markets. The Kingdom now ranks among leading industrial countries of the world, not only in oil-related industries, but also in petrochemicals, fertilizers, steel and iron. During his prosperous era, the Kingdom grew in stature to be among the world’s By Mohamed H. Al-Mady top industrial nations and SABIC advanced to rank tenth among international petrochemical companies. It has also grown to acquire the first rank worldwide in producing urea; the second in producing ethylene glycol, MTBE, and methanol; the third in polyethylene; the fourth in polyolefins in general; and the sixth in polypropylene. During King Fahd’s glorious reign, industrial cities were, by and large, equally distributed around the Kingdom, thus helping create industrial awareness among the citizens. His government created an atmosphere conducive to investments, attracting both national and foreign capital. It also paved the way for the Kingdom to bring in the most advanced technologies from different parts of the world. The late King believed that human resources were the real wealth of the country. Based on this belief, he worked tirelessly to build human resources with long-term investments. In addition to his concern for industrial development, he was greatly concerned with care for human development. He always believed that industry was the pivot around which other productive sectors revolved. The industrial sector qualified and trained tens of thousands of nationals who took on the responsibility of running large industrial, marketing and technological complexes. During his prosperous era, the Saudi community was transformed from being a consumer society to a producer and importer, not only in terms of industries but also technology. Truly, late King Fahd was not only a pioneer in industrial and human development, but also the backbone behind modern Saudi Arabia. The country has marched on and today ranks among the world’s powerful and influential nations. Today, the Saudi people have pledged loyalty to Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz and Crown Prince Sultan bin Abdulaziz. SABIC endorses this pledge of loyalty and appreciates the care and concern of the leadership in providing the necessary support for the company’s rapid growth. News Contents 8 3 The late King Fahd By Prince Saud bin Abdullah bin Thunayan Al-Saud, Chairman of the RCJY, Chairman of SABIC 4 A humane leader and a pioneer in the kingdom’s industrial march By Mohamed H. Al-Mady 8 Late King Fahd…The history of a nation The Saudi nation will live on to appreciate the great deeds of their leaders, recording their achievements in letters of gold. Late King Fahd, Custodian of the Two Holy Mosques, is one such leader whose accomplishments have been relayed around the world by the media 20 Events and achievements during King Fahd’s reign 20 30 SABIC - an industrial revolution Since its creation, SABIC has spent billions of Saudi riyals in buying local crude materials. The act has allowed the company in consolidating its activities, connecting them to the natural national economic resources 42 Sabic -The future of Saudi industry 48 Abdullah bin Abdulaziz inaugurates the launch of new projects In a festive national ceremony on 5 July, King Abdullah bin Abdulaziz (then Crown Prince) laid the cornerstone for Yanbu City II. The ceremonies were held on the west coast in the Yanbu Industrial city. The attendees included Prince Miteb bin Abdulaziz, Minister of Municipal and Rural Affairs and Prince Miqren bin Abdulaziz, Governor of Madinah, in addition to a number of princes and high ranking officials 5 Contents News 6 6 54 General Supervisor: Mohamed Al-Mady, Vice-Chairman and CEO Editor-in-Chief: Mohammad Al-Motawa, General Manager, Corporate Communications Managing Editor: Abdul Mohsen bin Abdul Rahman Alaskar Contributor: Dhari M. Al-Shammari (SHARQ) Contributions to SABIC magazine are welcome and may be sent to: vinodm@sabic.com Articles and letters received may be edited for length and clarity. Saudi Basic Industries Corporation PO Box 5101, Riyadh 11422, Saudi Arabia 54 King Abdullah: A promising new era The people of Saudi Arabia have pledged their allegiance to the Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz Al-Saud and Prince Sultan bin Abdulaziz Al-Saud, Crown Prince and Deputy Prime Minister 60 Prince Sultan bin Abdulaziz Charitable Foundation 60 Every effort has been made to report accurate information in the material contained within this publication. However neither SABIC nor the publishers hold out any guarantee as to its accuracy, neither do they indemnify any loss arising through the use of the information. The content, views or opinions expressed herein do not necessarily reflect the view of SABIC or the publisher. SABIC magazine is published on behalf of Saudi Basic Industries Corporation by: � � PO Box 301292, Riyadh 11372, Tel: +966 (1) 462 3632, Email: simd@gbc-me.com Senior Magazine Editor: Isaac Hamza Arabic Editors: Ali Fawaz, Mohammad Bedair Head of Design: Jim Simpson Graphic Designer: Hussain Mohamed Al-Bakri © 2005 Gray Business Communications Reprinting in whole or in part is prohibited by law except with the prior written approval of the Publisher. News 7 30 SABIC represents the principal foundation of the basic industries sector in Saudi Arabia. In the past three decades since the company was established, this sector has witnessed great in-depth changes, both qualitative and quantitative. Tribute News 8 8 Late King Fahd... The history of a nation By Mohammed Al-Kanaan Nations which do not record the deeds of their founders are doomed to a marginal historical existence and will not be long remembered nor will they be included among great nations. People who do not mourn with blood and tears when their leaders pass away do not deserve a place on the roster of worthy nations. Living nations today record with pride the deeds of their great leaders who contributed so much to history and civilization. King Fahd represents the history of a wellestablished people and an important era of a nation. Saudi citizens have the right to be proud of the historic record of their great king who, over a period which exceeded two decades, was the leader of the nation’s gigantic development program which brought the nation to a flourishing modernity. The Saudi nation will live on to appreciate the great deeds of their leaders, recording their achievements in letters of gold. Late King Fahd, Custodian of the Two Holy Mosques, is one such leader whose accomplishments have been relayed around the world by the media. We have a firm belief in destiny as decreed by Allah but this does not prevent us from greatly admiring the accomplishments of King Fahd in the development of Saudi Arabia. With firm national solidarity behind him, he led the Saudi people for over two decades in developing a modern society on the desert sand - a fact recognized fully by the world. To remember the late King and his works gives us some relief from the great tragedy of his loss. His memory also urges us to continue on the path which he has laid King Abdulaziz Al-Saud King Fahd bin Abdullaziz Al-Saud News Tribute out for us as we go forward in furthering the development of the country. King Fahd ensured that this nation is both homogeneous and stable and we will maintain our solidarity even in the face of dark circumstances. The death of a great King does not lead to the death of a nation because a well established nation is like a great tree whose roots run deep in the ground but its branches reach the sky. Highlights below of King Fahd’s life not only emphasize his great accomplishments in Saudi Arabia but also his many achievements in the Islamic and international arenas. Fahd’s death announced On August 1, 2005, the Saudi Royal Protocol Office announced to the world that King Fahd had passed away. The announcement was read on behalf of Crown Prince Abdullah bin Abdulaziz and the members of the Royal family. The entire country immediately began to grieve and feel the pain, while remembering his vast accomplishments in the development of the nation visible across the length and breadth of the Kingdom. King Fahd was known to be a generous king, a wise leader and a supreme statesman. The Arab and Islamic worlds were profoundly shocked at the demise of an extraordinary king - one whose name will be permanently engraved on the pages of history for his statesmanlike insights, his wise decisions, his international initiatives and, not least, for his charitable contributions. Fahd’s biography King Fahd was born in Riyadh in 1921 and grew up under the tutorship of his father and founder of the Kingdom of Saudi Arabia, King Abdulaziz, who took special care of him. Abdulaziz instilled in the 9 Tribute News 10 10 young Fahd the meaning of good conduct and the ethics of Islam and the Arabs. Fahd received his preliminary education at the Princes’ School, established by his father at the royal palace, and his higher studies were done at the Saudi Institute in Makkah. Fahd’s appointments In the progress of his life as a prince, leader and able administrator, King Fahd held many leading assignments of which the most important ones are: - In 1953, during the reign of King Saud, he was appointed Minister of Education. - In 1962, during the reign of King Saud, he was appointed Minister of Interior. - In 1967, he was appointed the Second Deputy Prime Minister, in addition to his appointment as Minister of Interior. - In 1975, he was proclaimed Crown Prince to King Khalid bin Abdulaziz. - Upon the death of King Khalid bin Abdulaziz in 1982, he was proclaimed King of the Kingdom of Saudi Arabia by the members of the Royal Family and the Saudi nation. The councils and commissions chaired by King Fahd are: The Council of Ministers, The Supreme Commander of the Armed Forces, The Royal Family Council, The National Security Council, The Supreme Council for Oil Affairs, The Higher Education and Universities Council, The Supreme Council for Youth Welfare, The Higher Committee for Education Policy, The Royal Commission for Jubail and Yanbu, The Royal Commission for the Development of Madinah, The Supreme Commission for King Abdulaziz City for Science and Technology. Fahd’s official visits As a statesman, King Fahd made numerous international visits. Additionally, he headed many official delegations of the Kingdom to international meetings and conferences. Not all can be accommodated here but we News Tribute will attempt to mention a few below. King Fahd: - Participated in the Kingdom’s delegation to San Francisco, USA to attend the ceremonies of the establishment of the United Nations in 1945. The delegation was headed by the then Crown Prince Faisal bin Abdulaziz. - Led the Kingdom’s delegation to the coronation of Queen Elizabeth II, Queen of Britain, in 1953. - Led the Kingdom’s delegation to the extraordinary meeting of the Arab League held in Lebanon in 1960. - Led the Kingdom’s delegation to the thirty-second meeting of the Arab League held at Casablanca, Morocco, in 1965. - Led the Kingdom’s delegation to the extraordinary meeting of the Arab League held in Lebanon in 1966. - Led the Kingdom’s delegation to Britain in 1970 to discuss the present and future status of the Gulf. - Led the Kingdom’s delegation to the USA to sign a cultural and commercial cooperation agreement with the country in 1975. - Led the Kingdom’s delegation to the OPEC meeting in 1975. - Led the Kingdom’s delegation to the following Arab Summit meetings: * Ninth summit held in Baghdad, Iraq, 1978. * Tenth summit held in Tunisia, Tunis, 1979. * Eleventh summit held in Amman, Jordan, 1980. * Twelfth summit held in Fez, Morocco, 1982, which proposed a peace initiative for the Palestinian issue. - Paid a visit to USA in 1985 to activate the Middle East peace process and help find a permanent solution for the Arab/ Israeli conflict. - Led the Kingdom’s delegation to an emergency Arab Summit in Cairo to discuss the results of the Iraqi occupation of Kuwait in 1990. - Led the Kingdom’s delegation to the 11 Tribute News 12 12 Supreme Council of the GCC in its eleventh meeting in Qatar in 1990. - Visited Kuwait after liberation from the Iraqi occupation and attended the twelfth summit of the GCC leaders in 1991. Fahd’s major accomplishments The reign of King Fahd witnessed many Islamic accomplishments besides witnessing the making of crucial decisions on Arab issues as well as the undertaking of wise political actions on international issues. In 1989-1998 the holy mosque in Makkah witnessed a tremendous expansion of the basement, the ground floor, the first floor, the surrounding areas of the mosque and the Al-Safa and Al-Marwa areas. The Ibrahim sanctuary cover, too, was renewed and the Raqoobah Bridge was built to connect the Al-Marwa area with the roof of the mosque. The present usable area now measures 366,168 square meters and can accommodate 820,000 visitors at one time but during high, or festive, season however it can accommodate one million visitors at any given time. The Prophet’s Mosque in Madinah has had also its share of expansion. In 1984, King Fahd gave instructions for the addition of a large building around the mosque on three sides: northern, western and eastern. The mosque itself was expanded to accommodate up to 257,000 worshippers. Other projects which King Fahd accomplished in the sacred precincts include the rehabilitation of the Holy Kaaba, the changing of its cover and the replacement of the marble in the interior. Also, all prayers were to be telecast live began to be telecast by television from both the mosques, Makkah and Madinah. The stoning area too was expanded and the Zamzam well improved. Lastly, the Aqsa Mosque tomb was rehabilitated. In 1984, King Fahd inaugurated the King Fahd Press Complex for Printing the Holy Qur’an. This press helped to expand News Tribute distribution of the Holy Qur’an and the translation of its meanings into many of the world’s languages. Additionally, he gave instructions to build mosques and Islamic centers in many countries. The details of such constructions are: 210 centers; 1259 mosques; 1069 Islamic schools; 200 institutes and 134 international universities. To emphasize his great sense of responsibility to the world of Islam, in 1986, King Fahd decreed that in future he would be officially known by the title of “The Custodian of the Two Holy Mosques.” The title “His Majesty” would no longer be used. The new title is known in Islamic history and it reflects the importance of the two holy mosques to Islam and the Muslims. King Fahd maintained strong position on Arab and Islamic issues, which cannot be forgotten or overlooked. These include: political and financial support for the Palestinian cause and the use of all diplomatic means to recover Arab rights; active intervention in 1981 to alleviate the suffering of the Palestinians in Lebanon; and the support he provided to Afghanistan’s people during the Soviet occupation. Using his international relationships, King Fahd also used his influence to help bring the Bosnian conflict to an end. He provided financial, political and moral support until the Republic of Bosnia and Herzegovina was established. In an unforgettable instance, King Fahd made the decision in 1990 to host international forces during the Iraqi occupation of Kuwait. In 1989, King Fahd hosted the contending parties of Lebanon, which led to the “Taif Convention.” This convention was the major factor that ended the Lebanese civil war. In 1981, King Fahd introduced an initiative at the Arab summit in the Moroccan city of Fez, which outlined a comprehensive and fair solution to the Palestinian issue. A similar initiative was also introduced in 2002 at the Arab Summit 13 Tribute News 14 14 in Beirut. It was presented to the Arab leaders by King Abdullah bin Abdulaziz (Crown Prince Abdullah at the time). The initiative called for a complete Israeli withdrawal against a comprehensive peace with the Arabs. The Arab Summit adopted this initiative and considered it to be a fair means of bringing the Arab-Israeli war to an end whilst establishing peace. Fahd’s national accomplishments In King Fahd’s reign, the Kingdom of Saudi Arabia saw a complete transformation in all areas. The most important of them was education – basic, technical and university – wherein lay the key to all other fields in the development of the nation. Human resources, too, were given priority for development. Thereafter, sound foundations were established for the industrial, agricultural and commercial infrastructures, which have had a major impact on the Saudi community. This impact is reflected in the standards and ways of living of the community which has led to the socio-economic stability of Saudi society. During Fahd’s reign, in 1992, the Political Governance Act, the Council of Consultancy and the Regulations Governing the Regions were promulgated. The transformation of the nation is particularly clear in the tremendous development which has taken place over the past twenty years. Economic reports suggest that the Gross Domestic Product (GDP) has recorded high rates at a progressively increasing annual rate of development, especially with regard to the political transformations which have taken place in the Gulf area. It also explains the excellent performance of the Saudi economy during the prosperous reign of King Fahd. This performance created a high level of stability in prices in general and the rate of exchange of the Saudi riyal in particular. The currency and financial environment News Tribute progressed side by side with the financial and currency policy of the government. A quick glance at the data and figures of Saudi development during the period indicates the following: Education: Number of government schools increased from 9080 in 1981 to 21,809 in 2000. These schools are being supported by eight government universities and a large number of technical institutes and colleges spread across the country. Education was always a top priority with King Fahd and the Saudi government. Health: Number of health centers in the Kingdom increased to 318 hospitals with over 1,700 health centers providing health services throughout the country. Industry: Number of factories rose to 3381, enabling the Kingdom to penetrate world markets particularly with major products like petrochemicals. SABIC leads this field, playing a major role in global economy. Agriculture: Production increased from 1875 thousand tons to 9044 thousand tons, thereby placing the nation in sixth spot in wheat production and first in dates. Besides, the Kingdom also attained self-sufficiency in the fundamental basics of food security including dairy products, eggs and meat. Desalinated water increased to 827 million cubic meters, rising from around 378 million cubic meters. This steady progress continued for more than twenty years. Today, the Kingdom occupies first position worldwide in the desalination of sea water. The number of dams constructed or in the process of construction has reached 200. They provide a storage capacity of over 500 million cubic meters of water ensuring water supply during times of severe shortage. 15 Tribute News 16 16 Transportation and communication: Number of paved roads increased from 64000 kms in 1981 to more than 155000 kms at the end of the reign. The 25 km long bridge that connects the Kingdom of Saudi Arabia to the Kingdom of Bahrain was inaugurated in 1987. Over 174 docks were established at Saudi seaports. Air transportation also witnessed a quantitative change in terms of increasing numbers of airplanes and airports. During the period, 27 airports were constructed, including four international ones. Communications also witnessed a great leap in terms of an increased number of telephone lines that reached approximately three million consumers. Mobile telephones, Internet access and other modern communications services were also made available to the public. Developments in industry, agriculture, transportation, education and health, coincided with the loans facilities granted by the government of the late King. Such financial assistances were established to assist the public. These loan organizations included the Saudi Industrial Development Fund, the Saudi Agricultural Bank and the Real Estate Development Fund, besides others. They contributed to the development of various economic sectors. The total amount given during Fahd’s period exceeded SR 199 billion. The granting of loans, however, continues and has encouraged foreign investment for which the government has provided all necessary facilities. In fact, the Saudi Arabian General Investment Agency (SAGIA) was created to serve this purpose. Community organizations have received their share of King Fahd’s concern. During his reign there was a great expansion in the number of charitable societies, societies for the disabled, and groups dealing with the special needs of some members of society. Presently, there are more than 215 charitable societies with a membership of over 30 thousand. Other national institutions, too, were established during this period, including the King Abdulaziz Center for National Dialogue created to further people’s involvement in society and the National Human Rights Society. Elections were held to choose members of the municipal councils in all regions of the Kingdom. A directive established the Saudi Journalists’ Association. The sports and youth sector also received its share of the royal concern. As a result of his support, without precedent, Saudi News Tribute 17 sports teams were able to perform in international events. This followed the establishment of sports clubs, stadiums and playing fields such as the King Fahd Stadium which was built and equipped according to international specifications. His enterprise resulted in Saudi teams participating in world cup tournaments more than once where they have proudly raised their nation’s flag. King Fahd’s reign also witnessed measures taken to boost tourism. It saw the establishment of the Supreme Tourism Commission, entrusted with the responsibility of attracting tourists to visit Saudi Arabia and enjoy the beauties of nature which it has in abundance as well as its archaeological remains, its heritage, its markets and traces of the long and deeprooted history of the land. Many initiatives, too, were launched in the fields of communications and information technology. Royal Decree No. 7/B/18123 included an e-business plan allowing citizens to be able to electronically do their business with the government, while the government reciprocates by providing its services electronically, too. The Ministry of Communications and IT were entrusted with the mission of establishing e-government with the cooperation of the Ministry of Finance and the Saudi Commission for Communications and IT. The intent was to increase public sector productivity and sufficiency, provide improved services, increase investment revenues and provide all required information precisely and on a timely basis. The above accomplishments by the government have had a stabilizing effect on society while adding to the political security of the nation. Through these accomplishments, the basics for a promising Saudi society were firmly established. Further boost to such strong grounding was provided by highly-trained security forces with a superior level Tribute News 18 18 of proficiency and experience. These forces, in turn, were supported by greatly advanced security institutes and colleges equipped with world-class facilities. The military sectors - the army and the National Guard - were given continuing attention, support and upgrading in order to enable them to be fully capable of protecting the national borders and the internal security of the country. Spoken like a King It is impossible to record all the memorable sayings of a leading personality like that of the late King Fahd. However, listed below are some of his more significant ones. - In a ceremony to inaugurate one of SABIC’s projects in 1984: “It is almost impossible for anyone to precisely explain the greatness of this tremendous accomplishment.” - Addressing pilgrims in 1982: “We Muslims do not call for war or disunity; rather, we call for peace and togetherness. We are not instruments of destruction; rather, we are builders intent on developing society. In general, our nation calls for what is good for the whole of humanity.” - At the opening of the second session of the Majlis Al-Shoura (The Consultative Council) in 1998: “Our country has become one of the leading names in education. Our schools, universities, colleges and technical institutes graduate thousands of men and women every year to serve their religion and country in good faith.” - At the opening ceremonies of the Second Conference for Businessmen organized by the Council of Saudi Chambers of Commerce and Industry in 1985: “As you know, our country is a large one and hence certain achievements in one geographical area may not be known in other areas of the Kingdom. However, the most important projects which are of major significance have now been completed and yet they will never come to an end.” 19 News King Fahd’s Achievements News 20 20 Events and achievements during King Fahd’s reign News King Fahd’s Achievements 21 1957 - Royal Decree issued establishing King Saud University and the then Prince Fahd appointed as Minister of Education and Supreme Chancellor of the University. 1964 - King Faisal bin Abdulaziz pays an inspection visit to the Eastern Province, accompanied by Minister of Interior, Prince Fahd, and Head of the National Guard, Prince Abdullah. 1975 - Royal Decree No. 1/189 appoints Crown Prince Fahd as the Supreme Chancellor of the Islamic University in Madinah. - Crown Prince Fahd also appointed as Supreme Head of the Royal Commission for Jubail and Yanbu. 1981 - Crown Prince Fahd is proclaimed King of the Kingdom of Saudi Arabia. - King Fahd makes a speech in which he outlines the domestic and foreign policies of his government. He also calls for Arab and Islamic unity. - King Fahd and King Hussain bin Talal, King of the Hashemite Kingdom of Jordan, inaugurate the new armed forces hospital in Jeddah. - King Fahd inaugurates King Khalid Hospital and Medical City of the National Guard in Jeddah. 1982 - King Fahd inaugurates the King Abdulaziz Library in Madinah. - King Fahd lays the cornerstone for the King Fahd Complex for Printing the Holy Qur’an in Madinah. - The Council of Ministers issues a resolution forming a Royal Commission chaired by King Fahd to supervise Madinah’s development. - King Fahd visits the Islamic University at Madinah and meets students and faculty. - A public library named the King Fahd National Library is established at the King Fahd Park in Riyadh commemorating the return of King Fahd to the capital. - King Fahd inaugurates a crude oil pipe line, the Petromin refinery and the natural gas storage plant at Yanbu. - King Fahd gives his approval for the establishment of a religious institute for the King Fahd’s Achievements News 22 22 training of imams and preachers in Riyadh. - King Fahd inaugurates the Mahd Al-Dhahab mine 400 km northeast of Jeddah. - King Fahd inaugurates the Maternity Hospital in Dammam. - King Fahd inaugurates the King Fahd Industrial Seaport for the Seaport Authority in Jubail Industrial City. - King Fahd inaugurates the National Hospital in Riyadh. - King Fahd approves the awarding of the contract for Phase I of the Shuaibah Water Desalination Project to supply Makkah and Taif with approximately 40 million tons of water. - King Fahd gives instructions that a committee be formed to study the status of the social insurance program. 1983 - King Fahd orders a donation of US$ 12 million for the supply of food and clothes to the Lebanese war victims. - King Fahd orders a donation of SR 20 million to the World Council for Mosques in Makkah. - King Fahd patronizes the ceremonies at which the first state prize for literature is awarded at the King Faisal Conference Hall. - King Fahd inaugurates the King Khalid International Airport in Riyadh. - King Fahd inaugurates the King Khalid Eye Specialist Hospital in Riyadh. - King Fahd approves the granting of the Medal of Merit to every citizen who donates blood 10 times. - King Fahd in his role as chairman of the Third Islamic Summit held three years earlier in Makkah inaugurates the Fourth Islamic Summit at Casablanca, Morocco. - King Fahd issues orders establishing the first drinking water project at his personal expense for the distribution of water to the pilgrims during the pilgrimage season. - King Fahd receives the sixth King Faisal Award for Service to Islam at ceremonies held at the King Faisal Foundation in Riyadh. - King Fahd inaugurates Phase II of the sea water desalination project in Al-Khobar. News King Fahd’s Achievements 23 - King Fahd inaugurates a number of industrial projects in Jubail. They are: the Plants Chilling project, the Steel Plant project, the Saudi Methanol Company (AR-RAZI) project, and the Royal Commission Institute for Manpower Development project. - King Fahd inaugurates Phase IV of the expansion of the King Abdulaziz Seaport project in Dammam and the ship repair dock. - King Fahd patronizes the graduation ceremonies for the 38th and 39th batches of graduates from the Technical Studies Institute at the Abdulaziz Air Base. - King Fahd inaugurates the largest date palm packing factory in Al-Ahsaa with a production capacity of 500 tons per day. - King Fahd meets with the students of King Saud University in Riyadh. - King Fahd inaugurates the new building of the King Abdulaziz Military College at Ayaina. - The chilled water plant at Makkah, which was a gift of King Fahd, becomes operational and cold water begins to be distributed to visitors to the Holy Mosque. - The King Fahd Mosque in Makkah, built at the expense of King Fahd, is inaugurated. - The Grand Mosque in Taif, built at the expense of King Fahd, is inaugurated. - King Fahd gives instructions to prepare a study for the construction of two tunnels around the Holy Mosque of Makkah to facilitate vehicular traffic. - King Fahd inaugurates the King Faisal Navigation Base in Jeddah. 1984 - King Fahd inaugurates Yanbu Export Refinery Project at a total cost of US$ 2 million with a production capacity of 250 Kbd. - King Fahd inaugurates the MakkahMadinah highway. - King Fahd patronizes the annual festival of the Ministry of Foreign Affairs in its new location at Riyadh. - King Fahd inaugurates the new university campus of King Saud University in Riyadh. It is the first of its kind in the Kingdom. - King Fahd receives letter of appreciation from the United Nations Food and Agriculture Organization (FAO) in appreciation of the Kingdom’s efforts in agricultural development. - Royal Decree no.M/13 is issued approving the Kingdom’s membership to the United Nations Industrial Development Organization (UNIDO). The constitution of UNIDO which was attached to the Decree is also approved. King Fahd’s Achievements News 24 24 - King Fahd approves the Kingdom’s membership to the International Sports Press Association. - King Fahd gives instructions to provide financial assistance to complete the construction of a mosque in Taipei, Taiwan. - King Fahd inaugurates the first annual festival for heritage and culture at Janadriyah. - King Fahd inaugurates the Saudi Businessmen Conference at the King Faisal Conference Hall, Riyadh. - King Fahd, the Supreme Commander of the Armed Forces, inaugurates the King Khalid Military City at Hafr Al-Batin. - King Fahd inaugurates the Hafr Al-Batin General Hospital. - King Fahd inaugurates the expansion of the King Faisal Specialist Hospital and Research Center. - King Fahd patronizes the passing out ceremonies of the first batch of graduates from the King Khalid Military College. - The Minister of Municipal and Rural Affairs signs a contract to execute the Makkah Gate project – King Fahd’s gift – at a total cost of SR 46 million. - King Fahd gives instructions to grant every pilgrim a copy of the Holy Quran printed at the King Fahd press complex. - King Fahd gives instructions for the execution of the Kingdom’s sacrificial meat project. 1985 - King Fahd lays the cornerstone for the new University City for Umm Al-Qura University. - King Fahd inaugurates the Madinah National Hospital. - King Fahd inaugurates the Qubaa’ Mosque in Madinah at a total cost of SR 110 million. - King Fahd patronizes the opening ceremonies of the World Conference on the History of King Abdulaziz. The ceremonies are held at the Imam Muhammad bin Saud Islamic University in Riyadh. - King Fahd patronizes the meeting of the eighth conference of the Arab Cities Organization in Riyadh. - King Fahd inaugurates the National Guard Housing Project east of Riyadh. News King Fahd’s Achievements 25 - King Fahd gives instructions to consider the 28th day of Ramadhan as a world day for national resistance and cooperation with South Lebanon pursuant to a decision of the Lebanese government, supported by the Arab League. - King Fahd’s gift arrives in Amman, Jordan en-route to Jerusalem. The gift is 8,000 square meters of high standard carpet to be used for the Al-Aqsa Mosque, the mosque of Omar bin Al-Khattab, the mosques for women and the Islamic museum. 1986 - King Fahd instructs the princes and ministers to assign a specific day in which to meet with the needy. - King Fahd inaugurates the industrial complex of the Saudi Cable Company in Jeddah. - Al-Qublatain Mosque in Madinah is expanded at the personal expense of King Fahd. The mosque covers an area of 1,190 square meters and accommodates 2,000 worshippers. - King Fahd inaugurates TV center in Madinah. - King Fahd inaugurates expansion of the Qubaa’ Mosque in Madinah. - King Fahd inaugurates the Petromin Shell Refinery of the Petroleum and Minerals Corporation in Jubail with a total production of approximately 30 Kbd. - King Fahd inaugurates the last phase of the University City of the King Fahd University for Petroleum and Minerals (KFUPM), Dhahran. - By Order No. 5780, King Fahd approves the changing of the name of the University of Petroleum and Minerals, Dhahran to the King Fahd University for Petroleum and Minerals (KFUPM). - King Fahd gives instructions to send 100 thousand tons of Saudi wheat as a gift to Syria. - King Fahd inaugurates the King Fahd City for Satellite Communications at Umm Al-Salam in Jeddah, the largest communications center in the Middle East. - King Fahd donates a piece of land to the World Union for the Blind in the Riyadh Diplomatic Quarter. Its regional headquarters was to be built on this piece of land with 50% of the total cost of construction to be paid for by the King. 1987 - King Fahd inaugurates National Guard Housing Project in Jeddah. - King Fahd gifts a complete medical center, King Fahd’s Achievements News 26 26 specializing in the treatment of kidney diseases, to the people of Egypt. The total cost of the project, borne entirely by the King, is US$ 10 million. - King Fahd inaugurates world conference of the Muslim World League held, as customary, in Makkah. - King Fahd approves establishment of an Islamic endowment, the revenue of which is to be used to support Islamic endeavors, besides supporting the efforts of the Muslim World League in its worldwide call to Islam. - King Fahd allocates sum of SR 11 million for the Sunnah Learning Center in Madinah. - King Fahd issues an amnesty of half their sentence for all prisoners who memorize the Holy Qur’an while in prison. - King Fahd inaugurates King Fahd Specialist Hospital in Al-Qasim. - King Fahd inaugurates Hail Central Electricity Project, built at a cost of some SR 2 billion and serving 294 cities and villages. - King Fahd patronizes inauguration ceremonies of the desalination and power generation plant and the water pipeline for Makkah and Madinah. 1988 - King Fahd lays the cornerstones for the projects of the Makkah Construction Company. - King Fahd inaugurates the Sharia Courts Building in Madinah. - The Council of Ministers issue a resolution pursuant to an initiative by King Fahd to transfer the ownership of housing project apartments to citizens against loans from the Real Estate Development Fund. - King Fahd donates the cost of construction of the Palestinian Embassy in the Kingdom. - The Australian city of Adelaide celebrates the completion of the rehabilitation of the oldest mosque in Australia, expenses for which are borne by King Fahd. - King Fahd and Egyptian President Hosni Mubarak inaugurate the King Fahd Center for Kidney Treatment and Operations , donated by King Fahd, at the Al-Qasr Al-Aini Hospital in Cairo. - King Fahd and King Hassan the Second, King of Morocco, opens the Two Holy Mosques exhibition at the International Exhibition in Casablanca. News King Fahd’s Achievements 27 1989 - King Fahd donates the cost of completion of the Al-Miftaha Village in Abha (later known as the King Fahd Cultural Center) to be a cultural center in the Asir Province. - King Fahd inaugurates the expansion and rehabilitation project of the Dhi Al- Halifa mosque in Madinah on an area of 8,800 square meters to accommodate 5,000 worshippers. - King Fahd donates SR 20 million as the contribution of the Kingdom of Saudi Arabia to the restoration of the Alexandria Library. - King Fahd gives instructions that the Kingdom would shoulder the expenses of completing the Islamic Center in Rome, the largest Islamic installation in Europe. 1990 - King Fahd approves the Kingdom’s donation of US$ 10 million for the Organization of the Islamic Conference. - King Fahd approves the Kingdom’s donation of US$ 7 million for the rehabilitation of the Holy Dome of the Rock Mosque in Jerusalem. - King Fahd gives instructions to waive all loans given by the Kingdom to poor countries. 1991 - Royal Decrees are issued regarding the Basic Act of Governance, the Majlis Al-Shoura Act, and the Regulations governing the provinces. 1992 - In a historic event, Afghani leaders meet in Makkah under the sponsorship of King Fahd. A peace convention is signed between the fighting parties. 1993 - Harvard University celebrates the establishment of the King Fahd chair for the study of the Islamic Sharia. The chair was established under instructions of King Fahd. - King Fahd inaugurates the building of the Majlis Al-Shoura. 1994 - King Fahd approves the establishment of the Supreme Council for Islamic Affairs chaired by Prince Sultan bin Abdulaziz. - Crown Prince Abdullah bin Abdulaziz and King Hassan the Second, King of Morocco, open the Al-Akhawayn (Two-Brothers) University in Afram, Morocco, ordered by King Fahd. King Fahd’s Achievements News 28 28 1995 - King Fahd inaugurates a project linking Saudi hospitals by satellite to medical centers in USA. The project begins with the King Faisal Specialist Hospital. 1996 - In a poll conducted by the Al-Azhar University, King Fahd is given the title of: Muslim leader who offered maximum support to Egypt in 1996. The University presents the Al-Azhar plaque and a Letter of Appreciation to King Fahd. 1997 - The Palestinian leader Yasser Arafat awards King Fahd the highest Palestinian medal – the Palestine Star - in appreciation of his role in serving the Palestinian cause. - Prince Salman bin Abdulaziz, Governor of Riyadh, inaugurates the SR 30 million King Fahd Mosque in Gibraltar, constructed at the expense of King Fahd. 1998 - King Fahd donates SR 10 million for the Orphans Charitable Society in Riyadh. - King Fahd patronizes official ceremony to commemorate the millennium of the founding of the Kingdom of Saudi Arabia. The ceremonies see him presenting awards to the sons and grandsons of the first men who entered Riyadh with King Abdulaziz in 1898. He also inaugurates the King Abdulaziz Historical Center at the Governor’s Palace in Riyadh as part of the millennium ceremonies. 1999 - Pursuant to instructions from King Fahd, three contracts are signed: the Tabarja Center Generation Plant; the Generation Plants for the project of connecting Hail with Al-Qasim; and the communications and control system at a total cost of SR 285 millions. - King Fahd gives instructions to build a center for heart diseases at his expense at King Saud University. - Royal Decrees are issued to reorganize the Council of Ministers and to establish the Civil Service Ministry. - Royal Decree establishes Supreme Economic Council. - King Fahd donates SR 2.5 million to procure medical supplies for Al-Ansal Hospital in Madinah. - Philippines receives a financial donation from King Fahd to rehabilitate Al-Shaikh Karim Al-Mahdoum Mosque – the first mosque to be built in the Philippines. - Saudi Arabian Airlines celebrates the beginning of operations at King Fahd International Airport in the Eastern Province. - King Fahd donates SR 18.7 million to Muslims in Chechen. - King Fahd issues instructions to establish News King Fahd’s Achievements 29 Supreme Council for Petroleum and Minerals Affairs. - King Fahd donates SR 2.9 million to support activities of Saudi Red Crescent Society. 2000 - Royal Decree approving foreign investment is issued. - Council of Ministers, chaired by King Fahd, approves establishment of the Supreme Commission for Tourism. - Prince Sultan bin Abdulaziz patronizes, on behalf of King Fahd, the opening ceremonies of Al-Faisaliya project and delivers the 22nd Annual King Faisal Awards. - The Kingdom of Saudi Arabia is granted an UN Award for efforts by the Ministry of Interior in fighting drugs. - Royal Decree approves convention establishing international land and sea borders with Yemen. - Agreement is signed concerning the offshore areas adjacent to the divided area between the Kingdom and Kuwait. - Non-Saudi real estate ownership and investment act is approved. - Crown Prince Abdullah bin Abdulaziz inaugurates King Fahd Islamic Cultural Center in Buenos Aires, Argentina in the presence of the Argentine president. - King Fahd donates SR 20 million as a contribution to the Crown Prince Abdullah bin Abdulaziz computer project. - King Fahd gives instructions to the provincial governors to raise money for the Jerusalem Fund in favor of the heroes of the Intifada. - King Fahd gives instructions to provide a US$ 2 million scholarship fund to the Jerusalem Treasury Agency to support education in Jerusalem and implement other projects. - The Kingdom of Saudi Arabia recommends, during the Arab Summit in Cairo, the establishment of a fund entitled “Al-Quds Intifada Fund” with a capital of US$ 200 million to be used in support of the families of the martyrs of the Palestinian Intifada. - King Fahd gives instructions to allocate US$1,300,000 for the operational budget of the Arabic Islamic Institute in Tokyo, part of the Imam Muhammad bin Saud Islamic University. - King Fahd orders the formation of a Supreme Commission for the Development of Makkah, chaired by the Governor of Makkah. - King Fahd approves licenses to establish two clubs for the deaf and mute, one in Jeddah and the other in Dammam. He also allocates the sum of SR 500,000 as annual support for each club. - Royal order approves the establishment of a charitable institute to be known as the King Khalid Charitable Institute. 2001 - A Royal order is issued to increase the membership of the Majlis Al-Shoura to 120 members. - King Fahd approves the establishment of a separate Ministry of Water. * Source: King Fahd’s website: www.kingfahd.ws King Fahd & SABIC News 30 SABIC - an industrial revolution The extraordinary achievements during King Fahd bin Abdulaziz’s reign Petrochemicals came into existence as an independent sector of the Saudi national economy in the fourth 5-year-plan, which covered the period 1985-1990. By 1990, the annual worth of the production of petrochemicals stood at SR 5.7 billion, up from SR 500 million in 1985 - a remarkable increase of the gross domestic production (GDP). Growth continued at a high rate in the basic industries sector, especially petrochemicals, and has supported the contribution of the industrial sector to the GDP. In fact, SABIC’s overall assets in 2003 exceeded SR 110 billion whereas the valueadded contribution to the GDP in 2002 was only about a little more than SR 10 billion when measured in terms of salaries, wages, rentals, loan assistance, capital depreciations and net profits. Also, exports of chemical and petrochemical products have greatly contributed to the diversification of the resources of the national income. The resultant outcome has supported the commercial balance and the balance of payments while providing the necessary currency to finance the import of goods and services. Not surprisingly, in the last few years, the value of SABIC’s exports to both regional and world markets has doubled. In terms of percentages, the export of petrochemicals has accounted for about 70 percent of the Kingdom’s total non-oil industrial exports over the past twenty years. It is in a sense a reflection of the major role which this sector has played in developing the national industries that are now capable of competing in the world market. SABIC represents the principal foundation of the basic industries sector in Saudi Arabia. In the past three decades since the company was established, this sector has witnessed great in-depth changes, both qualitative and quantitative. Such changes have clearly had a direct impact on the national economy and have supported its massive restructuring. They have also assisted in improving performance in the production and services sectors, diversifying the resources of the national income, localizing technology and assisting the advance of industry in Saudi Arabia for generations to come. King Fahd News & SABIC King Khalid bin Abdulaziz (L) and King Fahd bin Abdulaziz The quantitative changes were reflected in the large increase in national investment. These have led to an increase in actual production capabilities, internal and external sales and increased profitability. During these years, many imported materials were replaced by local products, thus helping provide international currency to support the commercial balance and the Kingdom’s balance of payments. Since its establishment, SABIC has been able to record a history of significant advances in global industry. The road to this success began during the time of King Khalid bin Abdulaziz, continued through the prosperous era of King Fahd bin Abdulaziz, and, is set to carry on into the promising reign of Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz. In order to understand this phenomenal national achievement and how it has added to the progress of the cultural renaissance that has accompanied it since the time of King Fahd, it is necessary to highlight the history of SABIC and its success story. The beginning ... a royal decree In 1976, the Council of Ministers chaired by the King Khalid bin Abdulaziz and King Fahd bin Abdulaziz (Crown Prince at that time) issued Royal Decree No. M/66. This decree ordered for the establishment of the Saudi Basic Industries Corporation (SABIC), which was empowered to invest in the natural hydrocarbon and mineral resources of the Kingdom using gases as fuels and catalysts. Previously, these gases were not used but were simply disposed by being burnt off, thus rendering them harmful to the environment. The introduction of a national gas collection network, however, allowed for the export of these gases in liquefied form to international markets. SABIC’s establishment gave further value to these gases since they became exportable as high-value products. The company’s initiative also enhanced the international demand for liquefied gases and the prices of the remaining surplus gas, after satisfying the needs of the local industries, have increased in the global market. Since its creation, SABIC has spent billions of Saudi riyals in buying local crude materials. The act has allowed the company in consolidating its activities, connecting them to the natural national economic resources. It has enhanced its quantitative growth and Since its establishment, SABIC has been able to record a history of significant advances in global industry. The first building rented by SABIC in Riyadh as its main office 31 King Fahd & SABIC News 32 development to meet the ever increasing demand for these materials. SABIC’s role and presence Within a relatively short period of time, SABIC has succeeded in building an advanced network of 18 gigantic industrial complexes supported by an international marketing network. It has established research and technology centers whose purpose it is to keep SABIC abreast with accelerating world-wide technological developments. SABIC’s famous six SABIC’s businesses are grouped into six strategic business units, supported by corporate departments and a Shared Services organization. These are: Basic Chemicals, Intermediates, Polyolefins, PVC and Polyester, and, Fertilizers and Metals. Basic Chemicals: The largest unit that handles the operations of transforming the Kingdom’s hydrocarbon resources such as methane, ethane, propane and butane into a variety of SABIC’s products. Such products include olefins, oxygenates and aromatic compounds, whether for use by SABIC’s industries or for export to international markets. Intermediates: The connecting link between the basic chemicals and a long list of derivative industries, this unit handles the chemical and fiber intermediate products including ethylene glycol products, caustic soda, ethylene dichloride, purified terephthalic acid, vinyl chloride monomer, hexanol ethylene, di-octyle phthalate and linear alpha olefins. Polyolefins: This unit uses crude ethylene and propylene including polyolefins, polypropylene products, polyethylene (low density, linear low density and high density). As the plastic industries expand on the local, regional and worldwide levels, the use for these products is expected to grow along with them. PVC and Polyester: Handles vinyl polychloride, polystyrene, PET, polyester fiber and melamine. These products provide the basis for a variety of derivative industries, mainly plastics and SABIC’s businesses are grouped into six strategic business units, supported by corporate departments and a Shared Services organization. fiber industries which manufacture pipes, wall covers, thermal insulation, materials for household uses, spare parts, children’s toys, disposable medical supplies, food packing materials, etc. Fertilizers and Metals: The Fertilizer unit deals with the production of ammonia, urea, phosphate and liquid fertilizers that play a vital role in food security both, locally and globally. SABIC is the largest producer of urea in the world. The Metal unit, meanwhile, deals with the manufacture of steel besides overseeing the shares of the Kingdom and SABIC in two aluminum industrial complexes in Bahrain. NewsFahd King & SABIC 33 Mission possible Fully aware of its national mission, SABIC has contributed a great deal towards Saudi national development plans. Its steel and iron products have been widely used in the Kingdom’s construction sector while its fertilizers play a vital role in the Saudi agricultural development programs in helping to transform the desert into green areas. Of course, it needs no saying that its chemical products have contributed greatly to the development of the country’s down-stream derivative industries. SABIC is a significant symbol of the integrity of the various national production sectors and spares no effort to upgrade these industries. The company’s activity is directly connected to basic crude materials and their source of production. As a matter of fact, the number of plastic factories in the Kingdom has increased from 108 in 1985 to approximately 600 at present. SABIC has contributed to the provision of crude materials to nascent factories. It follows from SABIC’s understanding of the importance of the local market and the need to support it as a factor in its strategic depth as well as a major component in the support of Saudi industries generally. It is a part of its strategy to eventually penetrate not only markets in neighboring countries but also remote global markets. The policy has had notable successes. For example, the growth rate of the plastic industry has progressively increased in the Kingdom. This growth has had a direct and indirect impact on the prosperity of many industryrelated activities such as transportation, and storage and packing, in addition to new job opportunities that these activities have created in the local market place. Human resource contributor SABIC has also made a significant contribution to the development of human resources in the Kingdom and has greatly added to the country’s industrial development. The principal objective of economic growth has always been to improve the living standards of the people and escalate their productivity. This may not be achieved without providing job opportunities. Manpower in the chemical and petrochemical industries result in high productivity due to the large amounts of capital which these sectors provide and their adaptability in the use of the most recent technologies. A study conducted in 2001 by specialized international institutions indicates that SABIC King Fahd & SABIC News 34 occupies a high rank among the well-known petrochemical companies not only where manpower productivity is concerned but also in terms of sales and profits per laborer. As such, SABIC has been keen on preparing qualified future industrial generations who are capable of undertaking the responsibility. In its continuous efforts to put together a viable modern industrial community, SABIC and its affiliated companies today employ a total of 16,000 employees. Of these, some 14,000 are Saudi nationals. Furthermore, the ratio of Saudi nationals to non-Saudis has recently increased to 82 percent Saudis and a majority of the engineers and technicians are turning out to be Saudi nationals. FANAR In 2002, the FANAR project was started at SABIC and its affiliates. The giant project consolidates and develops work policies and is aimed at training and qualifying the staff to deal with the most advanced information technologies, employing their skills in ways which serve the company’s ambitions and expectations. It is also aimed at effectively meeting the challenges the company faces in planning, operations, production, sales and marketing, and services in general. In 2002, the FANAR project was started at SABIC and its affiliates. The giant project consolidates and develops work policies and is aimed at training and qualifying the staff to deal with the most advanced information technologies. NewsFahd King & SABIC 35 Lending support SABIC participates financially in many private companies and institutions in the Kingdom. It also shares in the capitalization of many companies in the Gulf and is seeking to become a pioneering symbol of integrity in the GCC countries. It has established a large part of its industries in partnership with internationally renowned companies such as Shell, Mobile, Exxon, Echofuel, Mitsubishi, Taiwan Fertilizers, and others. In furthering the fulfillment of its national responsibilities, SABIC actively seeks out profitable investment opportunities abroad in order to support its internal investments and upgrade its operations. International competition is rigorous and the merger of large economic entities is increasing as the challenges of globalization are progressively growing and the Kingdom determinedly pursues its goal of joining the World Trade Organization. King Fahd & SABIC News 36 The first phase of SABIC’s life has been successfully completed. It has now embarked on a new phase in a drive to maintain and further its accomplishments with the support of the late Custodian of the Two Holy Mosques King Fahd and the Saudi government. This phase, however, differs from the previous one in terms of strategies, objectives and structural changes in the conditions of international world industry. It must now provide technological support for its industries while endeavoring to develop its own technologies and establishing long-term places for its products in the major markets of the world. Meanwhile, the company will seek to make strategic investments while taking into consideration developments in world industry. Also, looking ahead and in light of increasing international competition, SABIC is expected to restructure its operations. Winds of change Across the globe, the business world is witnessing an accelerated series of changes. In the past ten years, around 50 percent of the businesses in United States have been subjected to a restructuring process. In appreciation of these changed and ever evolving circumstances, SABIC, too, has embarked on a major restructuring process. Experts predict that companies which keep pace with international changes and developments in a detailed manner while rapidly investing in available opportunities will be the ones able to maintain their positions besides surviving stiff competition. It is to be expected that the hard work put in would result in a profitable harvest. Well-known international companies are known to invest outside their mother countries. Their concern is to diversify their investments around the world, especially in countries that have an encouraging investment climate. Many such companies are seeking to expand their industrial role by making plans in the Kingdom to gain larger profits. SABIC likewise seeks to utilize the same circumstances abroad, whether in the establishment of new businesses or in establishing partnerships with existing ones. It has developed a strategic plan with clear objectives for the future. The company aims to enhance its competitiveness, support its industrial and marketing operations and develop its technical and technological capabilities by intending to invest in projects that support its marketing News King Fahd & SABIC the market. SABIC is attempting to guarantee its place in the main markets which are nearer to the consumers thus ensuring timely delivery of its products and services to meet the customer expectations. Besides, it is also aiming to provide competitive products by reducing the presence of competitors in the main markets. In furthering the fulfillment of its national responsibilities, SABIC actively seeks out profitable investment opportunities abroad in order to support its internal investments and upgrade its operations. and customer service, while serving the best interests of its present and future products. SABIC is also concerned about monopoly technologies while realizing their importance in relation to its strategic plans, research and technology projects. It is accepted that these technologies would be of tremendous help in the development of production techniques and would reduce the cost of development while maintaining quality besides assisting in the establishment of industrial research centers. The petrochemical giant subjects any plans to invest abroad to elaborate and comprehensive studies in accordance with strict economic and technical standards. The focus is on penetrating the monopoly barriers and protective measures taken by certain countries in order to increase their share of Success breeds success SABIC’s first successful investment came with the purchase of the petrochemicals section of the Dutch company DSM in 2002. DSM is presently operating as SABIC-Europe and has given SABIC the opportunity to own capabilities for technological research and development. The facilities of this company are highly advanced and the work team highly qualified - technically, technologically and administratively. SABIC’s general strategy is aimed at increasing its technical and technological capabilities while upgrading its efficiency in research and development. It had previously established an industrial complex for research and technology in Riyadh, furnishing it with the most advanced laboratory equipment and employing highly qualified personnel from the Kingdom and other countries to work in the complex. It had also established a technological center in Jubail Industrial City. Today, as part of its global efforts, SABIC has established technological centers in USA, India and The Netherlands. In 2003, SABIC gave further evidence of its growing international presence with the purchase of the American Scientific Design Company in equal partnership with Sud Chemi, a German company. SABIC’s research and technology (R&T) SABIC’s R&T activities are directed towards specific strategic objectives. They are: - Updating and upgrading of the technical performance of technologies employed by the company. - Providing technical and technological support for SABIC affiliates. 37 King Fahd & SABIC News 38 The first phase of SABIC’s life has been successfully completed. It has now embarked on a new phase in a drive to maintain and further its accomplishments with the support of the late Custodian of the Two Holy Mosques King Fahd and the Saudi government. - Continuously improving the company products and developing their uses and applications. - Creating long-term relationships with customers with helping them solve their problems related to the production processes. - Developing and inventing in-house future technologies. - Building and upgrading the skills of Saudi manpower in the technical and technological fields. Investments in the technological centers abroad are aimed at many objectives. These include maintaining constant contacts with scientific institutions in the advanced countries, keeping pace with technological developments, attracting highly qualified researchers to benefit from their knowledge in their own countries, obtaining assistance in research efforts to keep pace with world industrial development, and strengthening the company’s relationship with customers. These efforts have had encouraging results by registering hundreds of patents around the world, patents involved with developing technologies and industrial catalysts. Among these is the new technology for producing acetic acid by oxidizing methane gas. It is the first technology of its kind to be established in the Middle East. It took seven years to develop this technology and it differs from the conventional methanol-based technologies. SABIC’s research efforts have also succeeded in developing a new catalyst for butene-1 production in cooperation with the French Petrol Institute. The new catalyst – known as SABCAT-1 – improves the quality of production and reduces the cost. SABIC, in cooperation with Linde A.G. Engineering Company, one of the largest German technological companies has developed a new technology for producing linear alpha olefins. The partners have registered this technology under the trade mark of ALPHA-SABLINE. News King Fahd & SABIC Abdulaziz (then Crown Prince) on April 12, 1999. The purpose of the meeting was to inaugurate the expansion projects of Saudi Methanol Company, AR-RAZI-III and AR-RAZIIV. At the same time, an expansion of the Saudi Arabian Fertilizer Company (SAFCO) was inaugurated. King Abdullah also laid the cornerstone for the expansion of the Eastern Petrochemical Company (SHARQ) and the Jubail Petrochemical Company (KEMYA). SABIC witnessed two other major events between 1983 and 1999, which became significant national occasions. On February 13, 1997 Crown Prince Sultan SABIC industrial profile The first changes in SABIC’s ambitious profile began with the laying of cornerstones in 1976 for certain preliminary projects. These changes continued until the beginning of the industrial harvest of 1983, after which these projects began to bear fruit in the entire country. The initial projects were started in Jubail Industrial City on the shores of the Arabian Gulf. They included the Saudi Methanol Company (AR-RAZI), the Jubail Fertilizer Company (AL-BAYROUNI, formerly SAMAD) and the Saudi Iron and Steel Company (HADEED). These were established by Royal Decree of the Custodian of the Two Holy Mosques King Fahd bin Abdulaziz on March 11, 1984. On January 31, 1989, King Fahd inaugurated the distinguished industrial complex of the Arabian Petrochemical Company (PETROKEMYA) and laid the cornerstone for the expansion of the National Chemical Fertilizer Company (IBN-BAYTAR). During the prosperous reign of King Fahd, the laying of cornerstones and the inauguration of new SABIC projects and industrial complexes became a regular feature. These projects indelibly marked the Arab Gulf and the shores of the Red Sea as up-and-coming industrial centers of international importance. Another meeting at the Jubail Industrial City was held with King Abdullah bin On February 13, 1997 Crown Prince Sultan bin Abdulaziz (then Second Deputy Prime Minister) laid the cornerstone for the flat steel project of HADEED. He also inaugurated production at the expansion projects of the Saudi Petrochemical Company (SADAF) at the Jubail Industrial City. 39 King Fahd & SABIC News 40 bin Abdulaziz (then Second Deputy Prime Minister) laid the cornerstone for the flat steel project of HADEED. Sultan also inaugurated production at the expansion projects of the Saudi Petrochemical Company (SADAF) at the Jubail Industrial City. The second event was SABIC’s international scientific achievement. Prince Salman bin Abdulaziz, Governor of Riyadh, inaugurated the first advanced research center in Riyadh on December 11, 1994. The center provides a base for scientific research and development in the Kingdom as well as the transfer of technology to and from any country. Later, in February 2004, he inaugurated an expansion of this project. Time to remember On October 25, 1999, on the shores of the Red Sea in Saudi Arabia, namely in the Yanbu Industrial City, SABIC experienced a memorable event. It was when Custodian of the Two Holy Mosques King Abdullah (then Crown Prince) inaugurated two projects: YANPET-II – a modern expansion of the Saudi Yanbu Petrochemical Company (YANPET) and the National Industrial Gas Company (GAS) plant. In an event no less important than the other SABIC projects, on March 6, 1999, Prince Sultan inaugurated the plant for producing purified terephthalic acid and The first changes in SABIC’s ambitious profile began with the laying of the cornerstones in 1976 for certain preliminary projects. These changes continued until the beginning of the industrial harvest of 1983, after which these projects began to bear fruit in the entire country. NewsFahd King & SABIC the aromatic compounds plant, both located within the complex of the Arabian Industrial Fibres Company (IBN RUSHD). This complex had earlier been inaugurated by Prince Abdulmajeed bin Abdulaziz, Governor of Madinah (at that time) on June 22, 1996, on behalf of the Custodian of the Two Holy Mosques. All these achievements, which were accomplished during the prosperous reign of King Fahd, received maximum international attention and gave global luster to the name of Saudi Arabia. Today, SABIC fully understands the international challenges it faces and the importance of technological industries. It has therefore established centers on the American continent through the SABIC Research and Technology Office in Houston, Texas, USA. The office was inaugurated by Prince Bandar bin Sultan bin Abdulaziz, the then Saudi ambassador to the USA, on February 6, 2001. Other technological centers were later established in India and Europe. On November 13, 2001, Prince Mohammad bin Fahd bin Abdulaziz, Governor of the Eastern Province, inaugurated SABIC’s main office in the Eastern Province. Then, on May 24, 2005, the company celebrated a significant achievement in Yanbu Industrial City when Prince Miqren bin Abdulaziz, Governor of Madinah, inaugurated the acetic acid plant at the IBN RUSHD. Today, SABIC fully understands the international challenges it faces and the importance of technological industries. 41 Looking News ahead 42 SABIC–the future of Saudi industry News Looking ahead The dawn of October 2, 2002, marked a new chapter in the success story of SABIC. Basking in the glory of its 25th anniversary, SABIC was honored by the presence of Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz (then Crown Prince) at its headquarters. The landmark SABIC building was inaugurated on this day on the highway leading to King Khalid International Airport in Riyadh. A glittering ceremony highlighted the achievements of SABIC since its beginning and unfurled its vision for the future. The occasion was a celebration of the giant steps taken by the country on the path of industrial progress. While Jubail’s Industrial City occupied a pride of place in this success story, Yanbu Industrial City at the Red Sea coast was not far behind. It was a tale of unprecedented success for Saudi Arabia as a nation. A new dawn In the history of SABIC and the Royal Commission of Jubail and Yanbu, December 25, 2004, will not be forgotten. It was the day on which King Abdullah, as then Crown Prince, laid the foundation stone for Jubail-II. On the same day, he also laid the foundation stone for a number of projects of the Royal Commission of Jubail and Yanbu. Some 43 Looking News ahead 44 of them were SABIC projects while others belonged to the private sector. The SABIC projects, which were inaugurated on this day, were: - Expansion of the Saudi Iron and Steel Company (HADEED). - Phase Four of the Saudi Arabian Fertilizer Company (SAFCO). - Phase Five of the Saudi Methanol Company (AR-RAZI). - The first production stage of the Jubail United Petrochemical Company (UNITED). - The urea/ethylene plant of the Arabian Petrochemical Company (PETROKEMYA) and Phase Five of the National Industrial Gases Company (GAS). Abdullah also opened the SABIC Technology Center in Jubail. Listed below is a summary of these projects, which establishes the international standing of Saudi Arabia and the role played by SABIC in enhancing Saudi industry. UNITED Project The United Project was formed on January 31, 2001 with SABIC providing 75 per- News Looking ahead 45 cent of its capital. The remaining capital was provided by the Retirement Pensions Administration (15 percent) and the General Organization for Social Insurance (10 percent). The first stage ended successfully last September with an annual production capacity of a million metric tons of ethylene and 575,000 metric tons of ethylene glycol. Both have entered the production stage, as has the giant urea/ethylene plant, which was set up in PETROKEMYA. It is half-owned by UNITED, which has an annual production capacity of 800,000 metric tons. PETROKEMYA expansion A new project, PETROKEMYA is considered the world’s largest plant meant for the production of urea/ethylene with a capacity expectancy of 800,000 mt/y. The project, equally owned by PETROKEMYA and UNITED, went on stream in 2004 and is expected to fulfill the need of its products both, nationally and internationally. SABIC Technology Center During his earlier visit to the Jubail Industrial City in 2001, Abdullah had laid another significant foundation stone. The SABIC Technology Center was completed in the first quarter of 2004. It is spread across 500,000meters in the Basic Industries Area of the Jubail Industrial City and most of the SABIC industries are located in this area. The center provides technical assistance in combating corrosion; Looking News ahead 46 protecting environment; promoting industrial health; chemical analysis of substances; studying the composition of metal; electronic microscopic analysis; defining the properties of materials; copying manufacturing techniques; and forming flat iron - all of which complement production operations. HADEED expansion The first expansion project added 500,000 metric tons of long steel to HADEED while On October 13, 2002, Jubail Industrial City was transformed into a new model of industrial excellence that opened new horizons for SABIC. News Looking ahead 47 another one added a million metric tons of flat steel. At the end of 2006, the two projects are projected to raise the annual production capacity to 5.5 million metric tons. The present production is 4 million metric tons and is expected to go a long way in fulfilling the needs of the construction industry as well as other industrial sectors. SAFCO: Project Four Set to go on stream for commercial production in the first quarter of 2006, this project will give the Saudi Arabian Fertilizer Company an added capacity of 1.1 million mt/y of ammonia and 1.1 million mt/y of urea. Thus, the total annual production capacity of the company will be around 2 million mt/y of ammonia and 2.6 million mt/y of urea. AR-RAZI: Project Five One of the biggest methanol projects in the world with an annual capacity of 1.7 million metric tons, this project, when it goes on stream in 2007, will enable the total annual production to reach 4.7 million mt/y, making AR-RAZI the largest international company producing methanol from a single location. It will also strengthen the competitive capacity of SABIC in the international methanol markets where it now holds the third place. GAS: Phase Five Regarded as a symbol of the cooperation between SABIC and the private sector in the Kingdom in the field of industrial gases, the new phase of the National Industrial Gas Company (GAS) is projected to meet the requirements of SABIC’s ambitious expansion plans. GAS: Phase Six This project is aimed at fulfilling the needs of the nation’s growing private sector. The company has proposed a giant complex with a daily production capacity of 3600 metric tons of oxygen in order to meet the requirements of Phase Five of AR RAZI. This would mean a total oxygen production of GAS at the Jubail Industrial City reaching 11,000 metric tons per day, in addition to its other productions, which include nitrogen, hydrogen and a mixture of krypton and xenon. The legacy continues On October 13, 2002, Jubail Industrial City was transformed into a new model of industrial excellence that opened new horizons for SABIC. On this day, King Abdullah, laid the foundation for a group of projects in Jubail Industrial City. Among these were some of the SABIC projects including UNITED and SABIC Technology Center. He also inaugurated expansion projects for SHARQ, HADEED, KEMYA, PETROKEMYA and IBN ZAHR. In conclusion, it would be fair to say that rapid pace of growth is a tradition SABIC has inherited from its previous generation. The company is determined to ensure that the legacy continues. Project Inauguration News 48 Abdullah bin Abdulaziz lays cornerstone for YANBU II, inaugurates new SABIC projects In a festive national ceremony on 5 July, King Abdullah bin Abdulaziz (then Crown Prince) laid the cornerstone for Yanbu City II. The ceremonies were held on the west coast in the Yanbu Industrial city. The attendees included Prince Miteb bin Abdulaziz, Minister of Municipal and Rural Affairs and Prince Miqren bin Abdulaziz, Governor of Madinah, in addition to a number of princes and high ranking officials. The Crown Prince also laid the cornerstone and inaugurated a number of projects for the Royal Commission for Jubail and Yanbu (RCJY), SABIC, and other national private sector projects. Reception On arrival Abdullah was received by Prince Mamdouh bin Abdulaziz, Prince Miqren bin Abdulaziz, Governor of Madinah, Prince Saud bin Abdullah bin Thunayan, Chairman of RCJY and Chairman of SABIC, Prince Khalid bin Abdulaziz bin Mishari, Prince Bandar bin Miqren bin Abdulaziz and Prince Turki bin Faisal bin Thunayan, in addition to a number of ministers, the Mayor of Madinah, Abdulaziz Al-Hussaini, Yanbu Governor Ibrahim Al-Sultan and other high ranking civil and military officials. Project News Inauguration At the venue Upon the arrival of Abdullah, the ceremonies began with the national anthem. After a warm welcome and greeting by the attendees, the Crown Prince visited King Fahd Civilization Center where he chaired the RCJY meeting which was attended by Prince Miteb bin Abdulaziz, After a warm welcome and greeting by the attendees, the Crown Prince visited King Fahd Civilization Center where he chaired the RCJY meeting Minister of Municipal and Rural Affairs, Prince Miqren bin Abdulaziz, Governor of Madinah, Dr. Ibrahim Al-Assaf, Minister of Finance, Dr. Hashim Yamani, Minister of Commerce and Industry, the members of the RCJY Board, and a large number of high officials from the RCJY, SABIC, and MARAFIQ. The Crown Prince reviewed the accomplishments of RCJY, SABIC, and MARAFIQ and their future plans. Yanbu II - laying the cornerstone Following the meeting, Abdullah cut the ribbon for Yanbu II monument and laid the cornerstone for RCJY, SABIC and some private sector projects. Muhammad AlJuwasiser, the General Manger of RCJY 49 Project Inauguration News 50 and the SABIC Vice Chairman and CEO, Mohamed Al-Mady, briefed Abdullah on the RCJY projects. Appreciation Following recitations from the Holy Qur’an, Prince Saud bin Abdullah bin Thunayan, welcomed Abdullah and expressed his appreciation for his consistent follow up, support and encouragement of all national activities aimed at diversifying the national income and the employment of technology. He said that this encouragement was a true reflection of the concern of the Custodian of The Two Holy Mosques in all sectors. He further added: “When your Royal Highness gave your blessing to the Jubail II and Yanbu II projects three years ago, the warm interaction of all concerned bodies Prince Saud said that all RCJY staff understood their national duties and thanked everyone involved in these projects who assisted in solving problems encountered on the way. was unprecedented. The government sector offered all possible cooperation, the private sector offered to conduct the necessary studies and plans, and the RCJY staff exerted their fullest efforts to implement the directions of your Royal Highness.” Prince Saud said that all RCJY staff understood their national duties and thanked everyone involved in these projects who assisted in solving problems encountered on the way. He also commended SABIC and other private Project Inauguration Projects inaugurated Abdullah’s visit culminated in the commencement of the commercial production of the new YANPET II project of the Saudi-Yanbu Petrochemical Company (YANPET). The resultant development brought the production of ethylene up to 1.7 million mt/y, ethylene glycol to 800,000 mt/y, polyethylene to 1.2 million mt/y and polypropylene to 310,000 mt/y, in addition to other products such as thermal gasoline, whose production reached 150,000 mt/y. Abdullah’s visit culminated in the commencement of the commercial production of the new YANPET II project of the Saudi-Yanbu Petrochemical Company (YANPET). companies for their efforts in building other industrial complexes. He added how the previous two years had attracted massive investments from influential foreign investors in Jubail and Yanbu. Prince Saud also thanked Prince Miqren bin Abdulaziz, Governor of Medina, for his continued support for the RCJY projects. He also announced SABIC’s donation of SR 5 million for the establishment of a public park in Yanbu in commemoration of this great national occasion. Later, Abdullah was shown a documentary film on RCJY, SABIC and private sector projects. During the event, people who had benefited from the Development Housing Project came to greet and thank him for the services they received through the Prince Abdullah Foundation for His Parents. 51 Project Inauguration 52 With the addition of 150,000 mt/y of ethylene, 120,000 mt/y of ethylene glycol, and 80,000 mt/y of polyethylene, the complex has now become one of the largest petrochemical complexes in the world. Its number of employees too has gone up to 1,500. That visit of the Abdullah also included the inauguration of the Phase II of the National Gas Company (GAS), which now adds a daily production of 1,000 metric ton to the present production of 1,500 metric ton of nitrogen and 800 metric ton to the present production of 1,200 metric ton of oxygen. Abdullah also visited the acetic acid plant, which has a production of 34,000 mt/y. Such level of production covers the total needs of the IBN RUSHD complex and enhances the integrity of its industrial operations by eliminating the need to import materials from abroad. In addition to this, Abdullah laid the cornerstone for the Yanbu National Petrochemical Company (YANSAB), which is the most recent SABIC company and expectedly one of the largest of its kind in the world with a production of more than 4 million mt/y. Its production can be broken down into the following: 1.3 million mt/y ethylene, 400,000 mt/y propylene, 900,000 mt/y polyethylene, 400,000 mt/y polypropylene, 700,000 mt/y ethylene glycol, 250,000 mt/y benzene and xylene/tolowin mixture, and 100,000 mt/y butene-1 and butene-2. The project will allow for 1,500 jobs. King Abdullah News 54 King Abdullah A promising new era News King Abdullah 55 The people of Saudi Arabia have pledged their allegiance to the Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz Al-Saud and Prince Sultan bin Abdulaziz Al-Saud, Crown Prince and Deputy Prime Minister. In so doing, they confirmed their strength, firmness and determination to complete the founder’s mission, one that his sons have continued to pursue. At the same time, their pledge of allegiance was a confirmation of the keenness of the people to preserve the gains which were achieved during the reign of the late King Fahd bin Abdulaziz, who, with the nation’s natural resources and its material and human capabilities, brought the Kingdom to within range of the world’s advanced countries and that too in record time. On August 3, 2005, the Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz Al-Saud, and Prince Sultan bin Abdulaziz Al-Saud, Crown Prince and Deputy Prime Minister, received vast crowds of citizens at the Seat of Governance in Riyadh. Leading them were the princes and the Grand Mufti of the Kingdom, the Supreme Head of the Judiciary, the Chairman of the Majlis Al-Shoura, the ulema, the shaikhs, the ministers, tribal leaders and notables from the provinces. In accordance with the Book of Allah and the Sunna of the Prophet (PBUH), all of them came to present their allegiance to King Abdullah and Prince Sultan. In his first speech delivered after assuming reins of governance, King Abdullah accepted responsibility for the heavy burden of governing and the great trust shown in him. He asked for the assistance of Allah in granting him the strength to continue in the path laid down by the great founder of the Kingdom of Saudi Arabia, King Abdulaziz Al-Saud and which his sons have followed after him. He concluded his speech by promising the Saudi people to take the Qur’an as the constitution and Islam as the pattern of governing. Abdullah said that his prime King Abdullah News 56 mission would be to realize the rights of the people, to establish justice and to serve all citizens without distinction. He asked the Saudi people to help strengthen and assist him in bearing the trust placed upon him and not to withhold advice or lessen their demands. A new era for dialog and combating poverty In the speech of the Custodian of the Two Holy Mosques on the occasion of his assumption of power, King Abdullah confirmed that he would continue to follow the path of reform, which he had begun in the last three years during his time as Crown Prince to King Fahd bin Abdulaziz. During this time, he played a principal role in strengthening the administrative and political reform movement in the Kingdom. The first of these steps towards reform was the setting up of the King Abdulaziz Center for National Dialog. The first seminar of this organization was held in mid-June 2003 during which many intellectual streams of thought were aired although it was difficult to contain them all under any one national roof. The King also firmly established the principle of combating poverty. He established this principle during his historic visit to the poor quarters of the city of Riyadh. This was followed up by programs set up by responsible institutions to fight destitution and everything that stood in the way of development by putting an end to unemployment, which was keeping many young people of the county outside the loop, thereby not allowing them to participate in nation building. Preserving the gains The new phase in the development of the nation will be led by King Abdullah and Crown Prince Sultan. It will honor the reign News King Abdullah 57 of King Fahd and its accomplishments in reform, the most prominent of which was the announcement of the establishment of the National Society for Human Rights that King Abdullah and his Crown Prince are fully supportive off, primarily because of their deep-rooted respect for the Saudi individual and respect of human beings that is firmly implanted in the country’s culture. As a matter of fact, Fahd’s reign witnessed the establishment of the election of the first Saudi Journalists’ Association. The Council of Ministers also approved the participation of citizens in the administration of local affairs via elections, effected through the Municipal Councils according to the laws governing municipalities and villages whereby half of the members of each municipal council were elected. The economic sector also witnessed many reforms which were effected under the banner of King Abdullah in his leadership role in the Supreme Economic Council. Many important resolutions were issued which have had a positive effect on the development of many of the organizations that serve local and foreign investments. King Abdullah also created the Supreme Petroleum Council to supervise the Kingdom’s petroleum policy. Abdullah has also effectively participated in security matters giving his attention to unstable situations both locally and internationally by joining in all international operations organized to confront the phenomenon of “terrorism” and its reverberations. He has made several trips abroad, among which was his visit to the US. On the national level, King Abdullah has given his support to the unity of the nation by lining up the local cadres to confront all forms of terrorism to which the nation might be exposed - whether they be destructive operations, intellectual corruption of beliefs or those wrapped in the guise of social reform and hidden behind hollow slogans destructive to the nation’s values and traditions. International gains Gains in the Arab arena are represented by what has been achieved by the participation of King Abdullah in international conferences and meetings where gains for the Arab nation as a whole have been achieved. The most prominent of these gains (made when he was the King Abdullah News 58 Crown Prince) was the “Prince Abdullah Initiative” of 2002, which especially took into consideration the changes in the Palestine issue as well as the deteriorating situation of the Arab world under the shadow of current international changes. The initiative was the wise expression of an opinion through which Abdullah was able to cleverly read the reality of the situation with worldly wisdom. It was an initiative which was made not just in the spirit of a trade-off but also in the interest of a just and complete Israeli withdrawal in return for complete peace with the Arabs. His many visits to several countries of the world created a bridge across which firm relations has been established between the Kingdom and other nations. The visits also represent the sympathetic political inclination of Saudi Arabia toward relations with other countries and also sympathetic relations between Islamic nations and the rest of the world in the wake of the degeneration of relations following the 9/11 disaster and subsequent events that reflected negatively on the Arab and Islamic world. King Abdullah and the expansion projects of SABIC SABIC has been shown great concern by King Abdullah in many of the expansion projects which it has undertaken over the past few years. At the conclusion of the last project, King Abdullah laid the cornerstone for Yanbu City II and before that for the projects of Jubail II. He also inaugurated many of the projects of the Royal Commission for Jubail and Yanbu, for SABIC and another group of companies in the private sector. He did this because of his sagacious view of the role of the industrial sector in supporting the national economy and considering it as the best way forward of helping the Saudi individual in investments. It includes a number of the basic elements which are involved in serious work. Thus, the efforts of the Custodian of the Two Holy Mosques have created an outstanding record of distinguished national achievements. The founding of King Abdullah Foundation for His Parents for Housing Development King Abdullah has undertaken a number of charitable works as part of his multifarious concerns with comprehensive social development. In these works, he has addressed the basic requirements of a number of social groups in Saudi society who are in greatest need. The most prominent of these works is the King Abdullah bin Abdulaziz Foundation for Parents for Housing Development. This establishment works toward the provision of housing units in rural areas, units which are economical in cost, easy to maintain and capable of both horizontal and vertical extension. They are built according to plans that include the setting up of housing complexes which fill the needs of the intended citizens and is in harmony with their life style and weather conditions, taking into consideration the differences in the geographical situation of the sites. This pioneering institution has taken the reins of leadership in the initiative, thereby making it not only an institution for housing News King Abdullah 59 but also a specialized research unit, a base for scientific information and a source for concerned specialists. Besides, it will be an observation post to provide social, population and environmental information connected to housing in a number of areas in the Kingdom, giving the resident a true and complete developmental picture of the situation from both, the theoretical and practical standpoints. The institution will take into account and deal with the needs of the resident first of all as it studies the surrounding circumstances of his society and the choice of ways and means which are available to him. The choices which will be given to the resident will in effect represent a complete and comprehensive developmental service. in the shadow of his father King Abdulaziz bin Abdulrahman Al-Saud, the founder of the third Saudi state. He received his education from several educators and ulema in the traditional Islamic manner through the “kuttab” school system and in lessons from the ulema sitting in a circle in a mosque around a teacher. Other means of study and education were also employed. Positions held by King Abdullah - Was chosen by King Faisal bin Abdulaziz to be the Head of the National Guard in 1964. - Was appointed by a Royal Decree as the Second Deputy Prime Minister in 1975. - Was chosen to be Crown Prince on June 30, 1982. - Was appointed as First Deputy Prime King Abdullah’s early years Minister and the Head of the National Guard in addition to his post as Crown Prince by a King Abdullah was born in the city of Riyadh in 1924 and was brought up Royal Decree on June 30, 1982. Sources: The Arab International Encyclopedia published by the Works Encyclopedia for Distribution and Publishing Establishment. Some photos of “the Custodian of the Two Holy Mosques, Fahd bin Abdulaziz Al-Saud” from the Arabian Mawsoo’a House for Publishing and Distribution. Crown News Prince Sultan 60 Prince Sultan bin Abdulaziz Charitable Foundation Crown Prince Sultan 61 The Prince Sultan bin Abdulaziz Charitable Foundation was established as the crowning achievement in a series of humanitarian works inspired by Crown Prince Sultan bin Abdulaziz Al-Saud. Initially, what began as a matter of concern for shelter homes designed for the provision of aid to the helpless and sick resulted in the Crown Prince establishing projects with broad and long term objectives. Indeed, the Foundation took over the administration and coordination of a part of these charitable activities, particularly Initially, what began as a matter of concern for shelter homes designed for the provision of aid to the helpless and sick resulted in the Crown Prince establishing projects with broad and long term objectives. those which were useful to the country and its citizens. In order to provide medical, scientific, technical, educational, and social services, the projects were divided into four major groups. Since its establishment in 1995, the mission of this institution has been to provide distinguished humanitarian, social, Crown Prince Sultan 62 The Prince Sultan bin Abdulaziz Charitable Foundation was established as the crowning achievement in a series of humanitarian works inspired by Crown Prince Sultan bin Abdulaziz Al-Saud. educational and cultural services in the Kingdom of Saudi Arabia, in the Arab and Islamic worlds and in all countries of the world. A part of the Foundation’s vision has also been about raising the standards of such services and of playing a unique role while contributing to the effectiveness of Crown Prince Sultan of a center for humanitarian and charitable institutions and projects. The prince hopes to raise the levels of health and rehabilitation services through this commitment. Sultan bin Abdulaziz Science and Technology Center Considered to be one of the most important projects of the Sultan bin Abdulaziz Charitable Foundation, the Center aims to spread and strengthen the principles of knowledge, scientific inventiveness and technology in the Saudi society at large, particularly concentrating on young people recently acquainted to modern sciences. These aims are to broaden the students’ Always concerned about the wellbeing and care provided to the sick and the elderly, Crown Prince Sultan has also been anxious about children in need of special care from an early age. the cultural renaissance which the Kingdom is now experiencing. This it does through the imposing physical plant which it has constructed. Some of the most prominent organizations are: Sultan bin Abdulaziz City for Humanitarian Services Always concerned about the well-being and care provided to the sick and the elderly, Crown Prince Sultan has also been anxious about children in need of special care from an early age. As part of his mission to serve people in need, the Crown Prince laid the cornerstone for the project of the Sultan bin Abdulaziz City for Humanitarian Services in 1996. The project is constructed on an area of one million square meters and is located in an area meant to become the starting point 63 Crown News Prince Sultan 64 The aim of the Sultan bin Abdulaziz Program for Medical and Educational Communications (MEDIUNIT) is to dispense health education in the Kingdom of Saudi Arabia through the use of highly developed technologies whereby medical information and educational services can be transmitted to distant locations both inside and outside the Kingdom. intellectual horizons and enrich their lives with knowledge as well as to create an interest in the various fields of science and technology so that they can become qualified and able to raise themselves and their country to distinguished levels. Sultan Bin Abdulaziz Medical and Educational Telecommunications Program The aim of the Sultan bin Abdulaziz Program for Medical and Educational Communications (MEDIUNIT) is to dispense health education in the Kingdom of Saudi Arabia through the use of highly developed technologies whereby medical information and educational services can be transmitted to distant locations both inside and outside the Kingdom. It is anticipated that such transfers can be accomplished by the mounting of conferences via satellites and the internet. MEDIUNIT would work to connect the service to the furthest region or village in the Kingdom by the use of satellites, optical fibers and digital microwave cables. These services will be possible owing to the availability of these technologies in the greater Arab nation and the exchange of information between the Kingdom and these countries. Sultan Bin Abdulaziz Arab and Islamic Studies Program This program allowed for the signing of longterm contracts with the University of California in America to recruit a distinguished teaching faculty from Saudi Arabia and the Arab world to teach Arabic and Islamic subjects to visiting researchers and graduate students accepted Crown Prince Sultan by the University of California at Berkeley. These programs have also been designed for persons concerned with studies involving the Arab-Islamic world including language, history, sociology and other such scientific fields. Sultan Bin Abdulaziz Special Education Program Within the scope of the concern of the Crown Prince, the Supreme Chairman of the Sultan bin Abdulaziz Charitable Foundation, is the desire to support the efforts of scientific institutes aimed at the development of the curriculum of special education as an academic subject. The aim is also to better understand the problems of those with special needs and develop ways to raise and educate them. To further the cause, a program, too, was established by the Sultan bin Abdulaziz Al-Saud Institute for Special Education in 1996-97 as an integrated academic program within the academic programs of the Arab Gulf University with headquarters in Bahrain. An agreement was signed for scientific cooperation between the university and the Institution with the aim of preparing specialists in the field of educating the physically challenged and then training them. 65 Outside the box 66 Fahd and Abdullah … a prosperous reign and a bright future Tragedy struck Saudi Arabia on August 1, 2005, when Custodian of the Two Holy Mosques King Fahd bin Abdulaziz passed away, leaving behind an era of great accomplishments and pioneering milestones. Late King Fahd can truly be said to be the man of the century, if accomplishments of leaders are indeed measured by the progress and development of the respective countries they lead. When announcing the death of the Custodian of the Two Holy Mosques, the Saudi people were in fact announcing the death of the architect of modern Saudi Arabia. He was the man behind several national achievements and the leader of Saudi Arabia’s rapid development march for more than two decades, during which the Kingdom witnessed many breakthroughs for the betterment of the people. We feel the pain of this great loss, especially when recalling his historical relations with SABIC, beginning from its early days till it became one of the leading petrochemical companies in the world. Such strong relations were manifested in his inauguration of the company’s mega projects. His bonds with SABIC were even stronger when he chaired the Royal Commission for Jubail and Yanbu, the cornerstone of industrial growth in the Kingdom. Today, the two industrial cities of Jubail and Yanbu stand testimony to the fact that the late Custodian of the Two Holy Mosques personally patronized the Kingdom’s industrial march by providing all the necessary facilities to Saudis and by encouraging national innovations and creativity. The late King was also the pioneer of education in the Kingdom. With the coronation of the new Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz and the new Crown Prince Sultan bin Abdulaziz, who are known to be widely experienced in matters of the state, the transition of power has been smooth. It has reflected the coherence of the leadership with the people, winning acclaim from the whole world. Mohammad Al-Motawa Editor-in-Chief News 67 On the occasion of the Pledge of Allegiance SABIC extends its sincere congratulations to Custodian of the Two Holy Mosques KING ABDULLAH BIN ABDULAZIZ AL-SAUD and Crown Prince SULTAN BIN ABDULAZIZ AL-SAUD and Members of the Royal Family and All citizens of the Kingdom of Saudi Arabia