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SABIC Launches Its Second Sukuk Issue

The Saudi Basic Industries Corporation ( SABIC ), after having obtained Saudi Capital Market Authority approval, has today begun issuing its second Shariah Compliant Sukuk. The Sukuk issuance will be available to investors in the GCC. The Sukuk will be issued in denominations of SAR 10,000 and will be subject to a minimum holding of SAR 50,000.

SABIC has mandated HSBC Saudi Arabia Limited and Riyad Bank as Lead Managers and Book runners for the Sukuk issuance, which features a Sukuk structure approved by SABB Amanah's Shariah Supervisory Committee.

Road shows started in Dubai on July 11, 2007 and will be followed by road shows in Bahrain on July 12, Riyadh on July 14 and Jeddah on July 15, 2007. The Sukuk offering is expected to be subscribed principally by institutional investors, consisting of banks and financial institutions, fund asset managers, pension and insurance companies and other institutional investors. Individuals are also eligible to purchase the Sukuk through either of the two joint lead managers.

As such, it is expected that the Sukuk will contribute towards the development of vibrant capital markets in the Kingdom, complementing the equity markets and benefiting the wider economy of the Kingdom.

SABIC successfully launched its debut Sukuk in July 2006. Further details including the subscription application form and offering circular, are available on SABICs website: www.sabic.com

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About SABIC
Saudi Basic Industries Corporation ( SABIC ) is one of the world's 10 largest petrochemicals manufacturers. The company is among the world's market leaders in the production of polyethylene, polypropylene, glycols, methanol and fertilizers as well as the fourth largest polyolefin producer.

SABIC 's profit rose to a record SR 20.3 billion (US$ 5.4 billion) in 2006, a 6 percent increase on 2005. Sales revenues for 2006 totaled SR 86.3 billion (US$ 23 billion), the highest revenues achieved by the company since its inception. Current assets at the end of 2006 were SR 74 billion (US$ 20.3 billion).

SABIC operates six interlinked strategic business units: Basic Chemicals, Intermediates, Specialty Products, Polymers, Fertilizers and Metals. The company has significant research resources and has dedicated Research and Technology centers in Riyadh and Al-Jubail, Saudi Arabia; Geleen, The Netherlands, Houston, USA and Vadodara in India. SABIC has more than 19,000 employees worldwide.

SABIC has two large production sites in Saudi Arabia - in Al-Jubail and in Yanbu - comprising 19 world-scale complexes. Some of these complexes are operated with multi-national joint venture partners such as ExxonMobil, Shell and Mitsubishi Chemicals. SABIC 's overall production has increased from 27 million metric tons in 2001 to 49.1 million metric tons in 2006.

Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70 percent of SABIC shares with the remaining 30 percent held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.

SABIC 's other global hubs are headquartered in Singapore for Asia Pacific, with a sales office network and logistic hubs throughout the region; and in Sittard, The Netherlands for Europe. In Europe, the company employs around 3,200 people, has a European sales offices network, logistic hubs and three petrochemical sites in Europe: at Geleen (The Netherlands), Teesside (United Kingdom) and at Gelsenkirchen (Germany). SABIC Europe produces 2.5 million metric tons per annum of polyolefins and 5.1 million metric tons of basic chemicals.

With the recently agreed acquisition of GE Plastics (deal remaining subject to applicable regulatory clearances but expected to be closed by the 3^rd quarter 2007), SABIC worldwide employees will increase to 30,000 with a presence in well over 100 countries, adding high-performance plastics to the product range of SABIC .

Othman Al-Humaidi
General Manager
Corporate Communications

© Press Release 2007