BMI's Executive Summary

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Market Overview

Investment in the UAE chemicals and petrochemicals industry has been growing at 10-15% per annum. This growth has been fuelled by the country's construction sector, which has been on an upswing in recent years. The UAE has also established a number of free trade zones (FTZs), wherein companies are allowed 100% foreign ownership. Imported raw materials and equipments sourced in the FTZ are exempted from corporate tax and customs duty.

Chemicals Performance In 2006 and 2007

In 2006, the manufacturing sector accounted for almost 16% of the emirate's non-oil GDP and about 11.2% of total emirate employment. The sector's GDP grew by 136% from AED10.5bn in 2001 to AED24.8bn in 2006 on annual growth rate (CAGR) of 19%.

The chemical and plastic industry sector accounted for 11% of the total investments in the manufacturing sector. It is estimated that Gulf countries will invest US$120bn in the oil and gas sectors between 2006 and 2010. Saudi Arabia leads with planned investments of US$50bn. The UAE has US$19bn in planned investments.

Industry Developments

In November 2007, The International Petroleum Investment Company, a subsidiary of the government of Abu Dhabi, announced that it will invest $5bn in Pakistan to build an oil refinery, which will produce up to 200,000 barrels of diesel per day. In January 2007, it was reported that UAE-based Dana Gas had completed its acquisition for US$950mn of Centurion Energy International, after shareholders approved the deal. Centurion's shares were de-listed from the Toronto and London stock markets on 11 January 2007. In November 2006, Bayer MaterialScience and Dubai-based Pearl Insulation Materials Industries established a polyur-ethane systems house joint venture in Dubai.

Investment Climate

The UAE received foreign direct investment (FDI) of US$18.68bn in 2006, a 10% increase from the AED61.91bn (US$16.85bn) in 2005. A major chunk of the foreign direct investment went to Dubai which had 62% of total FDI in 2006 followed by Abu Dhabi at 24% and Al-Shariqa at 10%. Financial services attracted 34.4% of total investment in 2006, followed by construction at 29%.

Contents

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Chapter 1 - Executive Summary

Market Overview

Industry Developments

UAE Plastics Segment

UAE Chemicals Industry SWOT

UAE Economic SWOT

UAE Business Environment SWOT

Chapter 2 - Market Overview

Table: Investment in UAE Chemicals Industry (US$mn)

Chapter 3 - Industry Forecast Scenario

Table: Urea Capacity in Arab/Persian Gulf Region (in ’000 tonnes)

Plastics Industry

Table: UAE Polymers Capacity (’000 tonnes annual average)

Plastic Imports, Exports And Re-Exports

Plastics Growth And Outlook

Chapter 4 - Industry Trends And Developments

Business Environment

Regulatory Developments

Industry Developments

Chapter 5 - Macroeconomic Forecast

Table: Economic Indicators

Chapter 6 - Company Monitor

Ruwais Fertiliser Industries

Abu Dhabi Polymers Company (Borouge)

Chapter 7 - BMI Forecast Modelling

How we generate our industry forecasts

Chemicals & Petrochemicals Industry

Cross checks

Competitive Landscape for Middle Eastern & African Chemicals: Sample of  
Companies Ranked

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Rankings and Competitive Landscapes by production and sales; market share and change on previous year; number of employees, ownership structure and year established. Also includes analysis of company expansion, export and investment strategies.