Saudi stocks surpassed 6,000 points for the first time in six months, led by Saudi Basic Industries Corp (SABIC) and Saudi International Petrochemical Co (Sipchem) as the companies signed an agreement to cooperate on new petrochemical projects. SABIC and Sipchem rose to their highest this year after they agreed to work together on projects in Jubail Industrial City. SABIC will process chemicals and provide Sipchem with ethylene olefin, while Sipchem will provide SABIC with carbon monoxide. Saudi Arabia's Tadawul All Share Index rose for a fourth day, adding 3.75 percent to 6,019.69, the highest since Nov. 5. SABIC rose 9.62 percent to SR65.5, its highest since Nov. 11 and Sipchem gained 9.8 percent, its highest since Nov. 8. Saudi Arabia, the world's largest oil exporter, is boosting investments in projects as the government seeks to expand petrochemical and power production. SABIC, 70 percent owned by the Saudi government, and Sipchem will receive feedstock for their projects from the Ministry of Petroleum and Mineral Resources. SABIC is working on new petrochemical projects costing SR12 billion ($3.2 billion) in Saudi Arabia, which will add 623,000 tons of new capacity. Sipchem is implementing SR3 billion in projects in the Kingdom.
