The Ministry of Commerce has announced that a new company has been set up, the Saudi International Petrochemicals Company. Based in Riyadh, the company has a capital of SR 500 million (U.S. $ 133.33 million) divided into 10 million shares, each valued at SR 50 (U.S. $ 13.33). The 73 founding members of the joint stock company, which was approved my ministerial decree on December 13, 1999, have already fully paid up their shares. The company's shares are not to be circulated for two complete fiscal years, in line with Article (100) of the companies system.
The Saudi International Petrochemicals Company is concerned with investment in industrial projects for chemicals and petrochemicals, particularly the production of methanol. The company will undertake the marketing of its products, and construct the buildings required for its activities. The duration of the company is 50 years effective from the date of the ministerial decree, but can be extended by an extraordinary meeting of its general assembly. The company will be managed by a board of directors, comprising 11 members appointed by its general assembly for a period of three years. The period of the first board of directors, however, will be five years.