Chemical giant Saudi Basic Industries Corporation (Sabic) has cut output at its European plants as global demand falls with the slowing economy, Sabic's chief executive said on Wednesday.

"We have reduced in Europe," chief executive Mohamed Al-Mady told Reuters on the sidelines of a petrochemical conference in Dubai.

Mady declined to give details on how much Sabic had cut output or for which products. The firm produces petrochemicals, plastics, fertilisers and steel.

Sabic posted its first quarterly decline in profits in more than two years in the third quarter and has said that it expected the slowing economy to hit fourth-quarter results.

Sabic continued to run plants in Saudi Arabia at full capacity, he said. "These are good investments," he said. "They are running on indigenous feedstocks so I think their economics are good."-Reuters