Farabi Petrochemicals: Driving Growth, Innovation, and Sustainability from Saudi Arabia to the World

Following the inauguration of its fourth integrated Linear Alkyl Benzene (LAB) plant in Yanbu Industrial City, Farabi Petrochemicals Company has reinforced its position as the world’s largest integrated LAB producer and a leading contributor to Saudi Arabia’s Vision 2030 objectives. The new $950 million facility, built adjacent to Aramco’s refineries, marks a new chapter in Farabi’s journey of growth, innovation, and sustainability.
In this exclusive feature, Eng. Mohammed Al Wadaey, CEO of Farabi Petrochemicals, shares insights into the company’s strategic expansion, global partnerships, and long-term ambitions to strengthen Saudi Arabia’s presence in the global chemicals sector.
A Milestone for Farabi and Saudi Vision 2030
“The commissioning of our Yanbu LAB-4 plant makes us the world’s largest LAB producer, an achievement realized in just 19 years,” says Al Wadaey. “Our global market share has grown from 2% in 2006 to 18% today, which reflects the strength of our vision, people, and operations.”
He adds that this milestone directly supports the Thriving Economy pillar of Saudi Vision 2030 while also contributing to the Vibrant Society and Ambitious Nation pillars by creating high-value career opportunities for Saudi professionals and attracting top global talent.
“Farabi’s story is one of ambition and innovation,” Al Wadaey continues. “It demonstrates how a Saudi company can achieve world-class excellence while advancing national goals.”
A Strategic Partnership with Unilever
Farabi’s renewed MoU with Unilever - its partner for more than two decades - underscores the company’s global leadership. “Unilever is a world leader in home care, operating in 190 countries and serving 3.4 billion people daily,” explains Al Wadaey. “Our partnership provides Farabi a direct route to high-growth markets, especially across developing and emerging economies.”
He notes that the collaboration not only reinforces Farabi’s competitive advantage but also strengthens Saudi Arabia’s position within the global chemicals value chain. “This partnership has proven instrumental in helping us expand capacity faster than our competitors while maintaining consistent product quality and supply reliability.”
Beyond LAB: Expanding into Specialty Chemicals
Farabi’s growth strategy extends well beyond LAB into specialty and downstream chemicals. “Since 2020, we’ve invested heavily in diversification, adding value to by-products, pursuing import substitution, and localizing advanced technologies,” says Al Wadaey.
Today, Farabi’s portfolio includes fuel treatment additives, lubricants, heat-transfer fluids, oil-field chemicals, and surfactants for mining and metalworking industries. “We are well positioned to serve major domestic players such as Aramco, SABIC, Ma’aden, and the Saudi Electricity Company,” he adds. “With more qualifications underway, we expect to achieve regional leadership in the coming years.”
Sustainability at the Core
“Since 2013, sustainability has been at the heart of Farabi’s strategy,” emphasizes Al Wadaey. “We are continuously improving efficiency, reducing greenhouse-gas emissions, and aligning with the Kingdom’s target of achieving net-zero by 2060 under the Saudi Green Initiative.”
Farabi has implemented an energy management system, adopted liquid-fuel displacement, and is exploring renewable-energy options. Its new units utilize cutting-edge, energy-efficient technologies, while the R&D team focuses on decarbonization, waste reduction, and circularity. “Sustainability and innovation are inseparable for us, they drive our competitiveness and our contribution to a greener economy,” he says.
Empowering Saudi Talent
“People are the foundation of our success,” Al Wadaey affirms. “We have introduced a range of talent development initiatives - such as our Job Qualification, Professional Development, and Talent Management programs - to attract, train, and empower Saudi professionals.”
These programs combine hands-on experience, mentoring, and structured career progression. “They ensure that our people are equipped not just to perform but to lead Farabi’s growth journey,” he adds. “Their passion and dedication are what make our achievements possible.”
Looking Ahead
Farabi’s growth strategy encompasses both vertical and horizontal expansion. “Vertically, we aim to sustain our global leadership in LAB and continue expanding capacity in key markets,” Al Wadaey explains. “Horizontally, we are developing our specialty-chemicals portfolio, targeting 35–40% of total revenue in the coming years.”
He concludes, “Our ambition is to remain a trusted partner, a responsible producer, and a national champion advancing Saudi Arabia’s industrial future.”