How much volatility is the Saudi Arabian petrochemical industry exposed to - Dissertation Example

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. Saudi Arabia is intrinsically dependent upon petroleum and petrochemical industry for its revenues and income. The nation’s huge oil reserves have assisted it in getting developed as one of the largest producers and exporters of petroleum and petrochemical goods. Precisely, the nation accounts for 20 percent of global petroleum reserves in the world and exports US$ 157.41 billion worth of the fuel.

Importance of the sector behind the development of the nation could be well perceived from the fact that it contributes around 75 percent to government budget, 45 percent to the GDP and constitutes of 90 percent of Saudi Arabia’s export earnings (Organisation of the Petroleum Exporting Countries, 2009). This high degree of dependence of Saudi Arabia upon its oil reserves bore fruit to the nation during the Arab-Israeli war of 1973 which increased oil prices to a peak thus facilitating the process in which Saudi Arabia became one of the fastest growing economies in the world (U.S. Department of State, 2011).

Such instances had been common for Saudi Arabia as it had been for other oil producing nations in the world. However, oil prices are susceptible to high degrees of fluctuations, which is the reason why it is important to assess the extent of volatility that the industry is exposed to.