Al-mady gives keynote speech at financial times china-middle east summit
Saudi Basic Industries Corporation (SABIC) Vice Chairman and CEO, Mohamed Al-Mady, gave the keynote speech at the Financial Times China-Middle East Summit, held in Riyadh on May 5.
Speaking on the subject of “Saudi Arabia and China: Natural Partners in the Global Economy,” Al-Mady said that Saudi Arabia’s large hydrocarbon resources made the Kingdom a “natural strategic trading partner” for China’s dynamic industrial and economic growth.
He said that China’s rapidly growing population provides important markets for Saudi Arabia’s growing petrochemical industry. “ Saudi Arabia and China are indeed natural trading partners supported by cooperative political ties. The geographic location of the partners permits an economic pathway for two-way trade,” he said.
With China’s growing demand for oil, he said, it is quite natural for China and the Saudi Arabia to trade in crude oil and refined products. Saudi Arabia is the number one supplier of crude oil to China, providing some 528,000 barrels per day in 2007 and targeting for larger volumes in the future.
Making a comparison between the economies of the West and the East, Al-Mady said “Economic growth statistics and trade balance data indicate that economic momentum is shifting eastward. China alone has been experiencing GDP growth of 10-12% for a number of years and experienced a positive trade balance of $265 billion in 2007.
Saudi Arabia, Al-Mady said, has benefited from the growing demand for energy products: crude oil, natural gas, LPG, and refined products while China has benefited from its large exports of manufactured products.
On SABIC’s growing business in China, he pointed out to the company’s recent Heads of Agreement with Sinopec worth $1.7 billion to build petrochemical plants in Tianjin. “This will be SABIC’s first joint venture in China and we hope this will lead to more joint ventures and a strong relationship with Sinopec in the important China market,” he said.
Speaking about SABIC and globalization, Al-Mady said that the company made a decision some years ago, to transform itself from a strong regional player to a major global player. More recently the company’s strategic plan to the year 2020 sets a target for SABIC to be among the very top tier of companies in the industry, he said.
© 2008 Al Bawaba (www.albawaba.com)
