Middle East gets on their toes to become the impending chemical industry with a rocket pace by taking industrial development and diversification proceedings, studied by Frost & Sullivan.
It has been an official announced of bringing heavy investment above$ 770 billion in the Middle East region for the period 2011 – 2020, which will boost up the chemical industry towards great expansion, stated Frost & Sullivan in the latest report. According to report, GCC region will be allocated more than 53 percent of the entire investment, while, the remaining outlay will mainly be consigned to Iran and Iraq. Moreover, oil and gas sector including other related industries like refinement, midstream operations and petrochemicals are likely to designate above 65 percent of the total investment, claimed in Frost & Sullivan report.
The face of Middle Eastern chemical industry is predominantly comprised on petrochemical, polymers and fertilizers, which stand out as the largest sub-division in the industry controlling 60 percent of the market. The rest of the segments typically include coatings, construction chemicals, paints, water treatment chemicals, etc.
The report further portrayed the reflection of region’s Chemical industry with worth $ 160 billion in 2013, which will certainly grow at an ever high pace in contrast to Global growth during 2011 to 2020. The biggest segments such as Fertilizer and petrochemical represented a compound annual growth rate (CAGR) of 8.3 percent and 7.6% respectively, and expected to hit the split of 75 percent of chemical industry in 2020. According to Aparajith Balan, program manager of Chemicals and Materials in Middle East and North Africa, “Middle East especially GCC region is thinking out of the box by producing value added chemicals, and stepping out to break the conventional autocratic bulk chemicals and petrochemicals segments. Heavy investments assignments are in progress to enhance the productivity of forte chemicals, and encourage the other value –added segments encompass performance polymers, specialty chemicals and intermediates.”
As a result of various mega projects running in the region, the construction chemicals and materials will also glimpse a great demand in 2020 that consist of, adhesives and sealants , concrete admixtures, flooring compounds, waterproofing compounds, and paints and coatings, etc
There will be a sparkling future for chemical industry in terms of growth in Middle East region. The key sectors such as Petrochemicals, fertilizer and downstream plastic conversion will make a considerable inclusion in revenue and set to be major driving forces for growth.
