Saudi Kayan Petrochemical Company (Tadawul: 2350) is a SABIC subsidiary operating a fully integrated petrochemical complex at Al-Jubail, producing ethylene, polyethylene, polypropylene and specialty chemicals. Saudi ethane feedstock — among the cheapest globally — gives Saudi Kayan a structural cost advantage of $200–400/t over European naphtha crackers.
Historical Cycle Returns
| Cycle | Signal | 2350 buy (SAR) | 2350 sell (SAR) | Return | Duration |
|---|---|---|---|---|---|
| COVID recovery | PMI recovery (2020–21) | SAR 10 | SAR 20 | +100% | 18 months |
| Ukraine | Energy crisis (2022) | SAR 14 | SAR 22 | +57% | 12 months |
| GFC recovery | PMI 52+ (2009) | SAR 5 | SAR 18 | +260% | 24 months |
Saudi Ethane Feedstock — The Gulf Advantage
Saudi Kayan sources ethane from Saudi Aramco at regulated prices far below global LNG-equivalent costs. This gives it ethylene production costs $200–400/t below European naphtha crackers — a structural margin advantage that widens when oil prices spike (raising European naphtha costs while Saudi gas prices stay fixed).
SABIC Integration
Saudi Kayan is 35% owned by SABIC and operates as part of SABIC's integrated chemicals ecosystem at Jubail, providing offtake agreements and commercial network access that reduces market risk.
Key Data
| Metric | Value |
|---|---|
| Exchange | Tadawul Saudi Arabia |
| Ticker | 2350.SR |
| Primary signal | PMI + ethylene margin |
| Feedstock | Saudi ethane (lowest cost globally) |
| Parent | SABIC (35%) |
| Best cycle return | +260% (GFC recovery, 24 months) |
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Join the Waitlist — Free →Frequently Asked Questions
What is Saudi Kayan's cost advantage?
Saudi ethane feedstock at regulated prices far below global market gives ethylene production costs $200–400/t below European naphtha crackers.
Is Saudi Kayan profitable?
It has had loss periods when ethylene margins collapsed (2015–16, 2019). The low feedstock cost means it is typically profitable above $200/t ethylene margin.
How does Saudi Kayan relate to SABIC?
SABIC owns 35% of Saudi Kayan and provides technical, commercial and feedstock integration. Saudi Kayan is a SABIC downstream ethylene monetisation vehicle.