Major Projects and Expansions Mutlaq H. Al-Morished Chief Financial Officer, SABIC

1. Major Projects and Expansions Mutlaq H. Al-Morished Chief Financial Officer, SABIC

2. Major Projects & Expansions • Yansab • Sharq • Saudi Kayan Yansab, Saudi Kayan, and Sharq expansion will add 3 ‘state-of-the-art’ world-class crackers to SABIC’s existing 8 crackers in the Kingdom

3. Yansab • Yansab will be a ‘state-of-the-art’ world-scale petrochemical complex with a highly competitive cost base • Yansab will cost approx. US$ 5 billion • The commercial operations shall commence in Q2-2008 • Yansab financing will come from a combination of equity (30%, $1.5 billion) and a non-recourse project debt (70%, $3.5 billion) • Yansab’s landmark IPO (35% of equity) completed in January, 2006 • Equity from all shareholders fully funded

4. Yansab • The shareholdings structure of Yansab: The 4% holding of SIIC (wholly owned subsidiary of SABIC) is dedicated for the SABIC employees’ stock grant plan • The $3.5 financing is in place with globally the largest ever Islamic tranche of $850 mln for any green-field petrochemical project financing

5. Yansab • This ‘grass-root’ integrated petrochemical complex includes a cracker facility with associated olefin derivative production • The design capacity and product slate comprises: • Ethylene Plant 1,300 kta Propylene Unit 400 kta • Ethylene Glycol Plant 700 kta LLDPE Plant 400 kta • HDPE Plant 400 kta Polypropylene Plant 400 kta • Butene-1/Butene-2 115 kta MTBE Unit 20 kta • Pygas Extraction Unit 240 kta • SABIC will be the provider of R&T, marketing and shared services • The overall project progress is on track

6. Yansab – Contractual Framework Arrangements in all critical areas in place

7. Saudi Kayan • The grass-root petrochemical complex will be globally the largest of its kind with a diversified product portfolio –in line with SABIC 2020 Strategy to have 20% of product portfolio in specialty chemicals by 2020 • The shareholdings of Saudi Kayan: SABIC with 35% equity stake will maintain effective management control

8. Saudi Kayan • The IPO processing in progress • The financing process based on 60:40 debt to equity in progress • All process technologies have been selected • Olefins Cracker and Utilities & Off-sites contracts awarded • SABIC will be the provider of R&T, marketing and shared services • The overall project progress is on track

9. Saudi Kayan 3,600 kta

10. Sharq • Sharq’s 3rd expansion includes a world-class cracker with 1,300 kta capacity and the following additional capacities to come on-stream in 2008: • EG 700 kta • PE (LLDPE/HDPE) 800 kta • The expansion cost is about $3.7 bln to be financed by internally generated cash and debt of $2.4 bln • EPC contracts already signed • The level of internal funding reflects Sharq’s ability to generate strong cash flows • The financing of $2.4 bln from JBIC* and banks already in place * Japan Bank of International Cooperation

11. Other SABIC Expansions …… Besides the crackers at Sharq,Yansab,and Saudi Kayan… SABIC’s other in-Kingdom expansions SABIC’s capex program already in place exceeds $25 billion

12. Yansab, Saudi Kayan, Sharq …. contribute to SABIC’s production target milestones MT From 6 MT in 1985 to 47 MT in 2005……. …..SABIC is on track to produce 60 MT by 2008 and 80 MT by 2012 Years

13. THANK YOU Thank you