Magazine July 2005

Transcription

Magazine July 2005
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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
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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
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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.
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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
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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.
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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.
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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
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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
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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
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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
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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
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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
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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
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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.
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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
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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
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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.”
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King Fahd’s
Achievements
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Events and
achievements during
King Fahd’s reign
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King Fahd’s
Achievements
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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
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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
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- 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.
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- 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.
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- 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,
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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.
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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.
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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
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Fahd’s
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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
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&
SABIC
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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
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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.
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& SABIC
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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.
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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.
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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
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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
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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
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Crown
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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
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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