Volatility is the Saudi Arabian petrochemical industry - Dissertation Example

In the era of growing globalization, it is important to take appropriate steps for retaining one’s position amongst international competitors. This is the reason why Saudi Arabia, like many of its peers had been contemplating measures for expanding their respective productive capacities. However, Saudi Arabia is immensely dependent upon revenues from oil for its income which helps the country to stick to its strategic plans. Given the fluctuating nature of the same, it is essential to attach some certainty in the revenue figures in order to initiate a long term plan such as expansion of oil production capacity.

A possible way through which this could be accomplished is that of attracting foreign direct investment funds. The national government has put forth a high degree of effort in this aspect recently, after the concept had been popularized and successfully implemented in Egypt from 2004. Normally private institutions are found to be more interested in adopting measures for encouraging FDI given their aim of instilling a more business-friendly environment and an edge over its peers. This is not the case in an economy which is crowded by public enterprises that does not move in the line of profit, which is why no such innovations had been entertained in Saudi Arabia.

However, the national government having recently realized its mistake and has submitted to adopting measures for improving its productivity potential (New Zealand Trade & Enterprise, 2011). ). These statistics definitely speak out for the popularity.. Comparison between markets Returns and Stock Returns of Advanced Petrochemical Company 40 4.1.2 Alujain Corporation 40 Chart 2. Comparison between Market Returns and Stock Returns of Alujain Petrochemicals 41 4.1.3 Methanol Chemicals Limited 41 Chart 3.

Comparison between Market Returns and Stock Returns of Methanol Chemical Company 42 4.1.4 Nama Chemicals Company 43 Chart 4. Comparison between Stock Returns of Nama Chemicals Company and Market Returns 43 4.1.5 National Industrialization Company 44 Chart 5. Comparison between Stock Returns of National Industrialization Company and Market Returns 44 4.1.6 National Petrochemical Company 45 Chart 6. Comparison between Stock Returns of National Petrochemical Company and Market Returns 45 4.1.7 Rabigh Refining and Petrochemicals Company 46 Chart 7.

Comparison between Stock Returns of Rabigh Refining and Petrochemical Company and Market Returns 46 4.1.8 Sahara Petrochemicals 47 Chart 8. Comparison between Market Returns and Stock Return of Sahara Petrochemical Company 48 4.1.9 Saudi Arabia Fertilizers Company 48 Chart 9. Comparison between Market Returns and Stock Return of Saudi Arabia Fertilizers Company 49 4.1.10 Saudi Basic Industries Corporation 49 Chart 10. Comparison between Market Returns and Stock Return of Saudi Basic Industries Corporation 50 4.1.11 Saudi Industrial Investment Group 50 Chart 11.

Comparison between Market Returns and Stock Return of Saudi Industrial Investment Group 51 4.1.12 Saudi International Petrochemical Company 52 Chart 12. Comparison between Market Returns and Stock Return of Saudi International Petrochemical Company 52 4.1.13 Saudi Kayan Petrochemical Company 53 Chart 13. Comparison between Market Returns and Stock Return of Saudi Kayan Petrochemical Company 53 4.1.14 Arabian