Saudi Arabian Fertilizer Company, the first petrochemical company in Saudi Arabia, was established under Royal Act no. M/13 dated 11-05-1385H – 1965 as joint venture between the Government and the citizens of Saudi Arabia, it had a capital amount of (100 million) SR. Initially the government owned 51% of the shares in the company with the remainder in private sector, when the company showed the growth and success, the government granted 10% of its shares to the company’s Saudi workforce. This was done to encourage national industries and to recognize the hard work and dedication of the employees. The capital of the company was increased several times and its current capital is SR 2500 Million which is equivalent to 250 million shares of SR 50 each share. Saudi Arabian Basic Industries Corporation (SABIC) owns 42.99% with 57.01% being held by the private sector. Construction of Ammonia / Urea plant in Dammam was started September 1966 and commercial production for Urea & Ammonia was started March 1970 with capacity of (202,000 MT annually) of Ammonia and  (330,000 MT annually) of Urea fertilizer.
Inline with company strategy of diversifying income sources; in 1979 SAFCO constructed Sulfuric acid plant with a production capacity of 100,000 per year. Sulfuric acid is used to meet Saudi Arabia’s (as well as some other Arab Gulf states) desalination needs, and the requirements of other products such as chemical cleaners, medicine, insecticides and phosphate fertilizers.