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SABIC Declares SAR 1.1 per Share Dividend for First Half 2026
On July 28, Saudi Basic Industries Corp. (SABIC) announced that its board of directors has approved a cash dividend of SAR 1.1 per share for the first half of 2026. The dividend represents an 11 % payout relative to the company’s share price and will be paid to shareholders who hold the stock on the ex‑dividend date of August 11, 2026, with the cash distributed on September 1, 2026.
The decision follows the release of SABIC’s first‑half financial results to the Saudi Exchange (Tadawul) on the same day. In a statement, the company noted that, even as geopolitical tensions in the region persist and logistics challenges continue to affect supply chains, it remains focused on delivering sustainable long‑term value to its shareholders.
"The dividend decision is part of a measured and balanced approach to capital allocation," the board said. "We aim to maintain competitive shareholder payouts throughout the business cycle while preserving the financial flexibility needed to navigate uncertainty, invest in strategic priorities, and support long‑term value creation."
The SAR 1.1 per share dividend is lower than the company’s previous half‑year payouts. In March 2026, SABIC paid SAR 1.50 per share for the first half of that year, and the same amount was paid for the first half of 2025. Earlier in 2024, the dividend was SAR 1.70 per share, and in 2023 it was SAR 1.60 per share. The most recent dividend of SAR 1.80 per share was paid for the second half of 2023. The board said the reduction better aligns the company’s capital structure with its current operating environment and supports future growth.
Market data shows SABIC’s market capitalization at roughly SAR 150 billion, with a dividend yield of 5.85 %. The company’s return on average assets stands at –8.36 %, while return on average equity is –15.37 %. Over the last three financial years, the consolidated cash dividend per share averaged SAR 0.90, and the average dividend yield was 10.89 %. Across five years, the average dividend per share rose to SAR 1.00, with a yield of 17.94 %. These figures illustrate SABIC’s long‑term dividend policy and its capacity to generate cash flow, even as recent earnings have shown volatility due to market conditions.
SABIC is the second‑largest public company in Saudi Arabia and the Middle East, with 70 % of its shares owned by Saudi Aramco. The company operates in petrochemicals, chemicals, industrial polymers, and fertilizers, and it is listed on Tadawul under the ticker 2010. Its operations are integral to the region’s industrial base and are subject to the broader economic and geopolitical dynamics that affect the global chemical market. Exposure to commodity price swings and supply‑chain disruptions has prompted a focus on resilience and diversification of its product portfolio.
The dividend decision will shape shareholder expectations and could influence SABIC’s capital‑allocation strategy for the remainder of 2026. By reducing the payout, the company signals a willingness to retain earnings that can be deployed toward strategic investments or to strengthen its balance sheet amid uncertain market conditions. The board indicated that future dividend decisions will be revisited as the company’s financial performance and market outlook evolve, reaffirming its broader strategy of balancing payouts with investment in research and development and capacity expansion.
Shareholders who hold SABIC shares on the ex‑dividend date of August 11 will receive the dividend on September 1. The company will announce its next dividend for the second half of 2026 on a date to be determined, likely in the first quarter of 2027. Investors and analysts will monitor the upcoming earnings reports and any changes in SABIC’s capital‑allocation policy for further clues about the company’s financial trajectory. The timing of the dividend payment and the company’s future capital‑allocation decisions will be closely watched by market participants, as they can signal SABIC’s confidence in its cash‑flow generation and strategic priorities.
The decision follows the release of SABIC’s first‑half financial results to the Saudi Exchange (Tadawul) on the same day. In a statement, the company noted that, even as geopolitical tensions in the region persist and logistics challenges continue to affect supply chains, it remains focused on delivering sustainable long‑term value to its shareholders.
"The dividend decision is part of a measured and balanced approach to capital allocation," the board said. "We aim to maintain competitive shareholder payouts throughout the business cycle while preserving the financial flexibility needed to navigate uncertainty, invest in strategic priorities, and support long‑term value creation."
The SAR 1.1 per share dividend is lower than the company’s previous half‑year payouts. In March 2026, SABIC paid SAR 1.50 per share for the first half of that year, and the same amount was paid for the first half of 2025. Earlier in 2024, the dividend was SAR 1.70 per share, and in 2023 it was SAR 1.60 per share. The most recent dividend of SAR 1.80 per share was paid for the second half of 2023. The board said the reduction better aligns the company’s capital structure with its current operating environment and supports future growth.
Market data shows SABIC’s market capitalization at roughly SAR 150 billion, with a dividend yield of 5.85 %. The company’s return on average assets stands at –8.36 %, while return on average equity is –15.37 %. Over the last three financial years, the consolidated cash dividend per share averaged SAR 0.90, and the average dividend yield was 10.89 %. Across five years, the average dividend per share rose to SAR 1.00, with a yield of 17.94 %. These figures illustrate SABIC’s long‑term dividend policy and its capacity to generate cash flow, even as recent earnings have shown volatility due to market conditions.
SABIC is the second‑largest public company in Saudi Arabia and the Middle East, with 70 % of its shares owned by Saudi Aramco. The company operates in petrochemicals, chemicals, industrial polymers, and fertilizers, and it is listed on Tadawul under the ticker 2010. Its operations are integral to the region’s industrial base and are subject to the broader economic and geopolitical dynamics that affect the global chemical market. Exposure to commodity price swings and supply‑chain disruptions has prompted a focus on resilience and diversification of its product portfolio.
The dividend decision will shape shareholder expectations and could influence SABIC’s capital‑allocation strategy for the remainder of 2026. By reducing the payout, the company signals a willingness to retain earnings that can be deployed toward strategic investments or to strengthen its balance sheet amid uncertain market conditions. The board indicated that future dividend decisions will be revisited as the company’s financial performance and market outlook evolve, reaffirming its broader strategy of balancing payouts with investment in research and development and capacity expansion.
Shareholders who hold SABIC shares on the ex‑dividend date of August 11 will receive the dividend on September 1. The company will announce its next dividend for the second half of 2026 on a date to be determined, likely in the first quarter of 2027. Investors and analysts will monitor the upcoming earnings reports and any changes in SABIC’s capital‑allocation policy for further clues about the company’s financial trajectory. The timing of the dividend payment and the company’s future capital‑allocation decisions will be closely watched by market participants, as they can signal SABIC’s confidence in its cash‑flow generation and strategic priorities.
