SABIC GOVERNANCE FRAMEWORK

CORPORATE GOVERNANCE STRUCTURE

SABIC is always committed to high standards of governance which is achieved through effective strategic planning, risk management, transparency, and social and environmental responsibility.

Our Corporate governance goes beyond meeting compliance requirements. SABIC has developed its own corporate governance framework (the 'Framework'), as shown in the diagram above, which sets out roles, responsibilities, methods of decision making and accountability in line with the Board approved delegation policy. It also includes the main governance bodies of the Company, and clarifies how they interrelate, integrate, and coordinate their activities.

SABIC robust corporate governance arrangements are aligned with applicable laws and regulations issued by the regulators including the Capital Market Authority (CMA) as well as the relevant international best practices.

The Framework is further supported by a comprehensive range of policies, guidelines and procedures to ensure that the business is conducted ethically and managed with effective oversight and control by the Board. The Framework also embodies the shareholders' rights and mechanisms for them to exercise such rights fairly and in accordance with the relevant regulations and global best practices. This includes enhancing communication with stakeholders and providing effective tools for such communication.

SABIC believes that governance, through its Framework and its governance bodies, is a key enabler towards achieving its goals, promoting accountability and transparency, enhancing its ability to sustain and maintaining strategic relationships with the various stakeholders.