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PETROCHEMICALSExhibit 55: Comparison of P/B and RoE, 2007 Exhibit 56: Comparison of P/B and RoE, 200860706040SAFCO5040SAFCORoE (%)20NICSipchemSIIGSABICRoE (%)3020SipchemSABICSPC APCP/BYanbu0Alujain-202 3 4 5 6 7100-10-20NICSIIGAPCKayanSPCYanbuRabigh0.5 1.5 2.5P/BSource: Bloomberg, Reuters, Tadawul, NCBC ResearchSize of the bubble represents market cap. as on 31 Dec 2007Source: Bloomberg, Reuters, Tadawul, NCBC ResearchSize of the bubble represents market cap. as on 31 Dec 2008Saudi Kayan Petrochemical Company recorded the highest average daily trading volume in2007-08.Exhibit 57: Average daily trading volume of stocks (‘000s) , Jan 2007 – Dec 200820,00019,49615,00010,0005,0004,7367241,924 1,1942,0025,0902,718 2,012 1,826 2,206 13,7575,9210SABICSAFCOSIIGSPCYanbuNamaSipchemNICAlujainAPCKayanRabighChemanolSource: Reuters Knowledge, TadawulThough oversupply situation islikely to further depressmargins, low cost structureremains a huge positiveWith hydrocarbon prices trending lower, the outlook for petrochemical prices also looks bleak.Moreover, as massive capacity expansion projects are in progress in the Middle East, they areexpected to trigger an overcapacity situation once they go on-stream in 2011-12. This, in turn,will likely depress utilization rates further, exerting pressure on prices. We expect the Saudipetrochemical sector to experience margin erosion, although to a much lesser extent vis-à-visglobal peers, given access to cheap feedstock advantage and higher economies of scale.Moreover, in the long term, we expect demand to regain momentum once the global economyrecovers, with major growth coming from the Asian countries, particularly China and India.Overall, although the outlook for 2009 remains negative based on declining demand and prices,as seen in 4Q-08, we believe that the long-term outlook for the Saudi petrochemical sectoris positive owing to its feedstock advantage, joint venture opportunities with globalpeers, expanding production base, and proximity to the high-growth Asian and MiddleEastern markets. However, allocation of low cost feedstock for the upcoming new productionfacilities would be a challenge for Saudi players.JUNE 2009SAUDI ARABIA FACTBOOK48