Saudi industrial giant Saudi Basic Industries Corporation's (Sabic) first-half net profits more than quadrupled to SR2.06 billion ($549 million) partly on higher petrochemical prices.

c had posted a net profit of SR488 million in the first six months of 1999.

The company said in a statement its affiliate, Saudi Arabian Fertiliser Company (Safco) posted SR86 million in net profits in the first half of 2000 against SR24 million in losses in the same period last year.

Managing director Mohammed Hamad Al-Mady attributed the rise in Sabic's net profits to higher world petrochemical prices, increased output and lower operating costs.

Al-Mady said the company had cut administrative costs and other expenses by six per cent in the second quarter of 2000 compared to a year earlier.

Sabic's second-quarter production rose by 11 per cent to 13.6 million tonnes year on year and sales increased by 8 per cent to 10.6 million tonnes.

Sabic recently launched two petrochemical plants producing a total of 900,000 tonnes per year (tpy) of ethylene glycol.

The projects for Eastern Petrochemical Company (Sharq) and Yanbu Petrochemical Company (Yanpet) were built at a cost of around $700 million.

Sharq, a 50-50 venture between Sabic and a consortium of Japanese firms led by Mitsubishi Corporation, has a production capacity of 1.4 million tpy of ethylene glycol.

Yanpet, a joint venture between Sabic and Mobil Corporation of US, has a production capacity of 800,000 tpy.

Meanwhile, a report quoted Prince Abdullah bin Faisal bin Turki, the governor of the General Investment Authority (GIA), as saying that the government is ready to sell its 70 per cent stake in Sabic.

Addressing an investment forum in London, he said Saudi Arabia had recently established the authority as part of its efforts to attract more investment, to maintain a high rate of economic growth, and to create more jobs for young Saudis.

More than 400 economic and financial experts from the UK, Saudi Arabia, the European Commission and the World Bank attended the forum.

Saudi officials and experts at the forum said the Kingdom had readied itself for globalisation and the challenges of the new millennium.

The government has already approved most of the laws that offer incentives and provide the best guarantees foreign investors can get anywhere in the world, they said.