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RIYADH: The gross domestic product of Gulf Cooperation Council countries rose 3.3 percent at constant prices to $456.3 billion by the end of 2024, according to a new report.

Non‑oil activities accounted for 70.6 percent of the region’s GDP at constant prices in the final quarter, while oil activities contributed 29.4 percent, Oman News Agency reported, citing the Gulf Statistical Center.

“The contribution of non‑oil activities to the GCC GDP at constant prices reached 70.6 percent by the end of the fourth quarter of 2024,” ONA said.

The GDP growth aligns with broader trends across the Gulf, where nominal GDP reached $587.8 billion, growing 1.5  percent year on year, with non-oil sectors contributing 77.9  percent of the total growth.

Qatar recorded the highest real GDP increase at 4.5  percent, followed by the UAE at 3.6  percent, and ����ֱ�� at 2.8  percent, highlighting non-oil expansion as the main driver across the bloc.

Real GDP across the GCC rose 2.4 percent, with non‑oil GDP expanding by 3.7 percent and oil GDP contracting by 0.9 percent due to voluntary OPEC+ production cuts.

Non‑oil sectors such as manufacturing, wholesale and retail trade, construction, finance, real estate, and public administration collectively underpinned this growth, with manufacturing alone contributing 12.5 percent and retail trade nearly 9.9 percent of nominal GDP.

����ֱ��’s economy grew 1.3 percent, with fourth‑quarter real growth of 4.4 percent compared to the same period in 2023. Non‑oil activities grew 4.6 percent, outpacing a 4.5 percent contraction in oil output as government spending increased by 2.6 percent, Reuters reported.

Strategic programs like the National Industrial Development and Logistics Program contributed SR986 billion ($262.8 billion) to non‑oil GDP in 2024, representing 39  percent of the nation’s non‑oil output, with overall non‑oil activities accounting for 55  percent of total GDP.

The GCC’s pivot away from hydrocarbon dependence is supported by major investments in tourism, logistics, manufacturing, and finance, combined with regulatory reforms and infrastructure expansion.

National reforms such as Saudi Vision 2030, the UAE’s Economic Vision, Qatar’s National Vision 2030, and Oman’s Vision 2040 are all central to this shift.

RIYADH: Chemicals production company Saudi Basic Industries Corp. announced the distribution of interim cash dividends amounting to SR4.5 billion ($1.19 billion) for the first half of the year. 

Shareholders owning company shares as of the eligibility date of Aug. 19 will receive a dividend of SR1.50 per share, representing 15 percent of the unit’s par value. 

The distribution is scheduled for Sept. 9, as SABIC emphasized its commitment to distribute competitive dividends in the long term despite the challenges facing the global petrochemical markets. 

SABIC’s decision, despite reporting quarterly losses, underscores its financial resilience and confidence in the long-term strength of the sector. 

The move aims to reassure investors of consistent returns and signals sector-wide stability, influencing peers across ����ֱ��. 

By balancing shareholder payouts with strategic reinvestment, SABIC reinforces its commitment to economic diversification and sustainable growth, aligning with broader national objectives to attract foreign capital and bolster market confidence during global uncertainties.

“Amid ongoing market challenges in the chemical industry, we took a disciplined decision to adjust the dividend in line with current conditions,” said SABIC CEO Abdulrahman Al-Fageeh.

“We remain firmly committed to a balanced capital allocation approach, ensuring competitive dividend distributions across the cycle while supporting long-term value creation,” he added. 

Meanwhile, SABIC reported several operational achievements for the second quarter of the year. 

The company was recognized at the seventh King Abdulaziz Quality Award ceremony, where three of its affiliates — Sharq, Gas, and Ibn Zahr — secured gold, silver, and bronze awards, respectively, for their excellence in operational performance, innovation, sustainability practices, and product efficiency. 

SABIC was also honored with the Best Polymer Producers Award in the Linear Low Density Polyethylene category by the Polymers for Europe Alliance and the European Plastics Converters Association. 

SABIC received the Excellent Collaboration Award for 2024 from UK-based DENSO Corp., recognizing its contributions to sustainable automotive solutions, particularly through innovations in bio-based and recycled polypropylene materials. 

SABIC is also reviewing strategic options for its subsidiary, National Industrial Gases Co., including the possibility of an initial public offering, as part of efforts to streamline its portfolio and sharpen its focus on core petrochemical operations. 

Al-Fageeh said the evaluation aligns with SABIC’s strategy to unlock shareholder value and adhere to global best practices in asset optimization within the petrochemical industry. 

The company is also progressing with key expansion projects, including the MTBE facility in Jubail, which has reached over 95 percent completion and is set to commence trial operations in the third quarter. 

Additionally, SABIC introduced 58 new products in the first half of the year, including an innovative platform designed for high-performance thermoplastics applications to replace traditional materials, reduce costs, and enhance design flexibility across sectors like automotive, energy, and infrastructure. 

SABIC continued to advance its digital transformation initiatives, deploying over 490 artificial intelligence models across its manufacturing operations to enhance energy efficiency, feedstock planning, and emissions reduction. 

The company also introduced its artificial intelligence guidelines to ensure a structured and responsible deployment of AI technologies across its global operations. 

Despite a resilient revenue performance, SABIC’s financial results for the quarter reflected significant pressures. 

Quarterly sales reached SR35.57 billion, down by 0.4 percent compared to the same period last year but up 2.8 percent sequentially. 

The company maintained steady sales volumes, although lower average selling prices impacted profitability. 

Gross profit for the quarter fell to SR4.42 billion, down 38.5 percent year-over-year, while operational losses widened to SR1.88 billion. 

The company reported a net loss of SR4.07 billion, compared to a net income of SR2.18 billion in the same quarter last year.

The loss was attributed to impairment charges and provisions of SR3.78 billion related to the closure of a cracker facility in Teesside, UK, and lower contributions from associates and joint ventures, particularly in Europe. 

SABIC incurred a SR517 million increase in finance costs driven by the fair valuation of derivative equity instruments and a SR284 million zakat expense. 

For the first half of 2025, SABIC’s revenue grew by 3 percent year-over-year to SR70.16 billion, while net losses reached SR5.28 billion, compared to a net profit of SR2.43 billion in the same period of the previous year. 

The company introduced adjusted financial metrics from the second quarter, reporting an adjusted earnings before interest, taxes, depreciation, and amortization of SR5.22 billion, a 40 percent increase from the previous quarter, resulting in an EBITDA margin of 15 percent. 

Adjusted income from operations improved to SR1.94 billion from SR0.49 billion in the first quarter, while adjusted net income reached SR0.48 billion compared to an adjusted net loss of SR0.07 billion in the prior quarter. 

Looking forward, SABIC reiterated its focus on long-term value creation through operational excellence, transformation, and selective growth. 

The company also maintained its disciplined approach to capital investment, with full-year expenditure guidance projected in the range of $3 to $3.5 billion. 

As of 12:25 p.m. Saudi time, SABIC’s share price had declined by 1.65 percent during intraday trading.