This report aims to provide a comprehensive overview of Saudi Basic Industries Corporation (SABIC), highlighting its strategic operations, global presence, and contributions to the chemical and materials industry within the Gulf Cooperation Council (GCC) region and beyond. The purpose is to understand how SABIC has grown into a leading multinational corporation, sustaining competitive advantage through innovation, diversification, and alignment with both national and regional economic objectives. The report also considers how essential human resource (HR) practices support organisational strategy and performance, and identifies key HR challenges that may influence talent management, workforce engagement, and the company’s ability to maintain a skilled and motivated workforce. By examining SABIC’s structure, product portfolio, financial performance, strategic initiatives, and HR considerations, the report provides a foundation for understanding its role in industrial development and economic growth across the GCC region.

2.0 Company Selection and Background

For this report, I have selected Saudi Basic Industries Corporation (SABIC), a multinational diversified chemicals company headquartered in Riyadh, Saudi Arabia. SABIC was established in 1976 through Royal Decree and has since grown to become one of the largest petrochemical manufacturers in the GCC region and globally (SABIC, 2019). The company plays a central role in the industrial and economic development of Saudi Arabia, while also contributing significantly to the broader GCC chemical and materials industry.

SABIC has a total of over 32,000 employees in its various offices all over the world, with about 3,300 of its metals department, Hadeed employees. The company is present in more than 140 countries and is running over 60 manufacturing and compounding plants all over the world (SABIC, 2019). Its technology and innovation operations can be assisted by a global network of technology and innovation centres, in which the corporation has more than 11,000 patents and pending applications. Innovation and technological progress of these centres also nudge development of products and help SABIC to sustain its competitive advantage in a shifting international market.

The main industry of SABIC is the chemicals and materials sector (SABIC, 2019). It is organised in a number of strategic business units such as Polymers, Chemicals, Specialties and Agri-Nutrients. The company also has a Metals business, which belongs to the Hadeed division of the company. Such a diversified structure helps SABIC to cater to different market segments as well as maintain balanced growth in the lines of business.

The products that the company deals with are commodity and high-performance plastics, industrial chemicals, fertilisers, and advanced materials. The applications of these products in these industries include automotive, packaging, agriculture, construction, electrical and electronics, hygiene, and healthcare. With such a wide range of portfolio, SABIC is engaged in global supply chains and sustainable industrial development through high-quality and value-added materials.

Although SABIC headquarters in the corporate setting is in Riyadh, it has a significant industrial presence in Al-Jubail on the Arabian Gulf and Yanbu on the Red Sea which are two of the largest industrial centres in Saudi Arabia (SABIC, 2019). In addition to the domestic presence, SABIC has created a global presence which consists of manufacturing, sales, storage and technology centres in the Americas, Europe, Middle East, Africa and the Asia-Pacific region. The global network is what enables the company to reach its customers all around the world and cooperate efficiently in terms of innovation and sustainability undertakings.

Finally, SABIC is always among the largest and most profitable chemical companies in the world. Its yearly revenues, in the last few years, have been averaged at SAR 140141 billion (around USD 3738 billion). The operating profits of the company (before interest, taxes, depreciation and amortisation or EBITDA) are usually between SAR 19 -20 billion (SABIC, 2019). Additionally, SABIC is partly owned by the state, and about 70 percent of the shares are owned by Saudi Aramco- the national oil company and the rest 30 percent are publicly traded in Saudi Stock Exchange (Tadawul). This ownership structure enhances the integration SABIC has on the Saudi Arabian energy industry as well as long-term strategic stability.
3.0 Strategic Alignment

The Human Resource Management (HRM) practises in SABIC are well aligned with its general strategic goals that aim at achieving innovation, sustainability, operational excellence and talent development. Being one of the largest chemical manufacturers in the world, SABIC understands that its employees are the best asset it has, and successful HRM is the key to success at the organisational level (CIPD, 2024). The HR strategy is aligned with the mission of the company providing the Chemistry that Matters through having a skilled and engaged and innovative workforce in a position to propel its global growth and transformation.

3.1 Talent Acquisition and Workforce Planning

The talent acquisition strategy enables SABIC to acquire and retain highly qualified people who can contribute in its global operations. The corporation aims at hiring diversified talents, in terms of their geographical locations and their areas of expertise, and matching the talent requirements with business (Eshete & Birbirssa, 2024). The workforce planning process is one that expects SABIC to meet the future demands with regards to technological development, market growth and sustainability objectives. Graduates and professionals in the area of science, engineering and digital workers are commonly addressed in recruitment programmes because they support the decision-making of SABIC in terms of innovativeness and long-term competitiveness. This is a proactive strategy that will maintain a flow of talent that can be depended on to meet the changing strategic orientation of the organisation.

3.2 Learning and Development

The HR strategy of SABIC is based on continuous learning and professional growth, which is proven by Vulpen (2020). The company also invests a lot on training of employees by providing them with Global Learning Centres and Leadership Development Programmes. Such programmes increase technical skills, management power and multiethnic cooperation. SABIC Learning and Development model facilitates the Vision 2030 focus on human capital development by training Saudi nationals and international employees on leadership positions. Leadership programmes like the Future Leaders and the Leadership Way develop innovative mindsets that enable the employees to align to the new technologies and market forces. This learning investment gives SABIC the power to provide innovative and sustainable solutions to the industries.

3.3 Performance Management

The performance management system at SABIC is aimed at matching individual objectives with corporate aims. It makes use of clear performance reviews with a focus on accountability, productivity and innovation. Employees are not only assessed based on their results but also the way they bring out the core values of SABIC which include; Inspire, Engage, Create and Deliver. This performance culture is based on values that promote a culture of teamwork, continual enhancement, and ethics. Managers collaborate closely with employees to establish quantifiable performance metrics, give regular feedback, and acknowledgment of results (People & Rice, 2025). This kind of congruency between performance goals and the strategic focus makes sure that every strata of the organisation will work in line with the global aspirations of SABIC.

3.4 Employee Engagement and Retention

SABIC HRM philosophy relies on employee engagement. The company promotes a culture of inclusiveness that appreciates diversity, free flow of communication, and self-care of employees. The idea of engagement surveys and feedback systems is applied in order to define areas to improve and create initiatives that make the job more satisfying (CIPD, 2024). SABIC has competitive remuneration, career development and flexible working conditions that have ensured the company has high retention rates. Such practises do not only enhance morale but help in productivity, innovations as well as loyalty, which are critical components of sustainable organisational growth.

3.5 Diversity and Inclusion

At SABIC there is the encouragement of diversity and inclusion as the sources of creativity and innovation. The company appreciates the fact that diverse workforce has different perspectives which enhances decision making and problem solving. HR programmes are in favour of gender diversity, cultural inclusivity, and equal opportunities. The programmes that target the promotion of female involvement in leadership are in line with the global best practises, as well as the Vision 2030 of Saudi Arabia. Incorporating the idea of inclusion into its HR policies, SABIC improves its international image and provides the culture of respect and teamwork.

3.6 HR’s Role in Organisational Change, Innovation, and Growth

As a driver of organisational change and innovation, HR assumes strategic position in SABIC. It plays the change partner role in aligning the workforce transformation and goals of digitalisation and sustainability. To respond to market changes in the global market, HR professionals initiate projects that facilitate agility, upskilling, and resilience (Moltke, 2025). HR keeps the employees prepared to adopt a new technological and organisational innovation through strategic strategic planning of its workforce, leadership development, and the engagement programmes. People strategy combined with corporate strategy will make HRM at SABIC sustainable, operating at the highest level of performance, and remaining competitive at the global scale.

4.0 HR Challenges and Gaps

Although SABIC has a robust presence in the world and well developed human resource…

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