SABIC highlights support to downstream industries

Going by world experience, Small and Medium Enterprises (SMEs), are what drive the economies of most economically successful countries, creating jobs that are meaningful and sustainable, said Sultan bin Battal, SABIC vice president, corporate strategy and Planning,
He was addressing a sustainability conference organized by the Gulf Petrochemicals and Chemicals Association (GPCA) in Dubai.
The Third GPCA Sustainability Conference was held under the theme, “Addressing Today’s Challenges: Creating a Sustainable and Resilient Future.”
The event addressed pressing sustainability issues relevant to the region.
Elaborating on SABIC’s support to downstream industries and SMEs in Saudi Arabia, Bin Battal said that SMEs take advantage of the products produced by core industries — like petrochemicals — to address the very specific needs of a multitude of end-users that require products and/or services.
“At SABIC, we believe it is critical to have a holistic and integrated perspective of the chemical value chain to help develop and drive the chemical sector downstream — which will create SMEs and jobs that in turn form a sustainable economy.”
To that end, SABIC is supporting the development of an ecosystem along the chemical value chain under what SABIC calls the “push-pull” Strategy.
The “push-pull” Strategy aims to help create new SMEs and associated jobs. And it does so by coordinating efforts to invest in assets, products and innovation in Saudi Arabia’s chemical industry (that is, the “push”), to establish key selected advantaged industries in Saudi Arabia (that is, the “pull”) and to help develop SMEs and related capabilities (that is, the “Core Engine” of the ecosystem), Bin Sultan said.
SABIC’s investments and efforts have already resulted in the creation of downstream businesses and associated SMEs and jobs in Saudi Arabia.
For example, they have helped develop a strong plastics downstream value chain with over 850 converters and 65,000 jobs.
As a result, most of the plastic-based finished products used today in Saudi Arabia in the areas of durable and non-durable packaging, construction and more are created by Saudi-based SMEs.
Bin Battal cited the examples of the SABIC Academy, a center of excellence in business training, and the Home of Innovation, a center for collaboration and business development, as examples of the company’s many associated programs to help develop SMEs and SMEs’ capabilities.
In addition, SABIC’s Local Content Development Program supports locally established manufacturers and locally established service providers to become SABIC’s preferred suppliers.
Also Bin Battal highlighted the importance of the creation of the Saudi Arabian Industrial Investments Company by the Public Investment Fund, Saudi Aramco and SABIC.
This company will create key industries in ?Saudi Arabia that are considered to have a natural structural competitive advantage: maritime, transportation, oil and gas equipment, and power and water and electrical equipment.
In turn, these industries will create a pull force for the creation of SME and jobs in both product and service sectors.
“Our countries must create significant numbers of SMEs… for the chemical industry in our region, the creation of SMEs and sustainable jobs is a huge responsibility,” he said.
A wide range of interest groups, including chief sustainability officers, health, safety and environment personnel from chemical companies, NGOs, and government representatives attended the event.
SABIC was the sponsor of a gala dinner on the second day of the conference.

Source: Arab News