1. By Mohammed H. Al-Mady Vice Chairman & Managing Director Role of Primary Industrial Projects in the National Economy

2. Agenda Global Petrochemical Trends. Migration to The Best Cost Locations. Evolution to Higher Value Downstream Products. Impact on Saudi Arabian Economy. Saudi Arabias Investment Prospects. Saudi Arabias Current Situation. Future Saudi Arabia Business Development Prospects. Partnership Financial Track Record

3. Agenda Global Petrochemical Trends.

4. Agenda Global Petrochemical Trends. Migration to The Best Cost Locations.

5. FOR PAST 15 YEARS, GLOBAL PETROCHEMICAL INDUSTRY MIGRATING TO DEVELOPING REGIONS... …DEVELOPING REGION CAPACITY HAS BEEN EXPANDING 4x FASTER THAN IN TRADITIONAL MAJOR MARKETS. Chart 1

6. INDUSTRY MIGRATION TO DEVELOPING REGIONS PARTLY REFLECTS THEIR FASTER ECONOMIC GROWTH... …PROJECTED TO CONTINUE FOR AT LEAST NEXT DECADE. Chart 2

7. Chart 3 INDUSTRY MIGRATION ESPECIALLY ENCOURAGED BY THE DEVELOPING REGION'S ENERGY RESOURCES... …PARTICULARLY IN MID-EAST AND SAUDI ARABIA.

8. Chart 4 INDUSTRY TRENDS SEEM FAVORABLE FOR MID EAST COMPARED TO OTHER DEVELOPING REGION PRODUCERS… …AND SAUDI ARABIA SEEMS WELL PLACED WITHIN MID EAST.

9. Chart 5 MIGRATION TO DEVELOPING REGIONS EXPECTED TO CONTINUE… …WITH MID-EAST AND SAUDI ARABIA AS MAJOR BENEFICIARIES.

10. Agenda Global Petrochemical Trends. Migration to The Best Cost Locations. Evolution to Higher Value Downstream Products.

11. Chart 5 MIGRATION TO DEVELOPING REGIONS EXPECTED TO CONTINUE… …WITH MID-EAST AND SAUDI ARABIA AS MAJOR BENEFICIARIES.

12. Agenda Global Petrochemical Trends. Migration to The Best Cost Locations. Evolution to Higher Value Downstream Products. Impact on Saudi Arabian Economy.

13. Chart 6 PRIMARY MANUFACTURING HAS GROWN RAPIDLY......WITH AN INDIRECT 'MULTIPLIER' EFFECT ESTIMATED AT 5-8x ON DIVERSIFYING ECONOMY AS A WHOLE.

14. Chart 7 CHEMICAL INDUSTRY EXPANSION PROVIDES SOLID FOUNDATION FOR MANUFACTURING GROWTH......BY UTILIZATION OF 'STRANDED' GAS RESOURCES.

15. Chart 8 CHEMICAL INDUSTRY EXPANSIONS HAVE 'BEGUN' TO DIVERSIFY AND EXPAND TRADE...

16. Agenda Global Petrochemical Trends. Migration to The Best Cost Locations. Evolution to Higher Value Downstream Products. Impact on Saudi Arabian Economy. Saudi Arabias Investment Prospects.

17. Agenda Global Petrochemical Trends. Migration to The Best Cost Locations. Evolution to Higher Value Downstream Products. Impact on Saudi Arabian Economy. Saudi Arabias Investment Prospects. Saudi Arabias Current Situation.

18. Chart 4 INDUSTRY TRENDS SEEM FAVORABLE FOR MID EAST COMPARED TO OTHER DEVELOPING REGION PRODUCERS… …AND SAUDI ARABIA SEEMS WELL PLACED WITHIN MID EAST.

19. Agenda Global Petrochemical Trends. Migration to The Best Cost Locations. Evolution to Higher Value Downstream Products. Impact on Saudi Arabian Economy. Saudi Arabias Investment Prospects. Saudi Arabias Current Situation. Future Saudi Arabia Business Development Prospects.

20. Agenda Global Petrochemical Trends. Migration to The Best Cost Locations. Evolution to Higher Value Downstream Products. Impact on Saudi Arabian Economy. Saudi Arabias Investment Prospects. Saudi Arabias Current Situation. Future Saudi Arabia Business Development Prospects. Partnership Financial Track Record.

21. Chart 9 PAST FINANCIAL RESULTS WERE GENERALLY SATISFACTORY… …EVEN THOUGH 1987-1999 WAS A VOLATILE PERIOD …FOR MANY GLOBAL PETROCHEMICAL COMPANIES.

22. Chart 10 20 YEARS AGO, SEVERAL GOALS ESTABLISHED FOR SABIC AND PRIMARY INDUSTRIAL DEVELOPMENT IN THE KINGDOM... … 20 YEARS LATER, GOALS ARE NOT MUCH DIFFERENT. WHAT IS DIFFERENT IS THE KINGDOM'S ABILITY TO SHOW INVESTORS A TANGIBLE TRACK RECORD OF INDUSTRIAL DEVELOPMENT SUCCESS.