Money and business

20 million tons of UAE production expected from petrochemicals annually

The UAE continues to enhance its position in the petrochemical sector, taking advantage of huge investments and expansion projects that aim to diversify its economy and enhance local production to maximize the benefit of oil, while the state has clear strategies to enhance its global position in the petrochemical industry, through implementing ambitious future projects.
These projects are based on a long -term vision to diversify the economy, enhance added value, and achieve self -sufficiency in chemical production, while keeping pace with the global trend towards sustainability and reducing carbon emissions.
The “Interioral Strategic Analysis” Center in Abu Dhabi said that the UAE is witnessing a remarkable diversity in its projects in the industrial and petrochemical sector, where major initiatives are distributed across several emirates to achieve industrial integration and enhance the state’s position in global markets.
Abu Dhabi is the main center for the petrochemical industry in the country, as major companies such as ADNOC are implementing huge strategic projects. Dubai is working to enhance its position as a regional industrial platform and a logistical center that serves global export operations and areas such as Jabal Ali, which host a number of companies specialized in manufacturing chemical products, such as chlorine and its derivatives, were developed, in addition to developing logistical infrastructure to facilitate transport and export operations.
“According to the Gulf Federation of Petrochemicals and Chemicals” Jebka “, the UAE has acquired about 18.6 million tons of the total Gulf production of petrochemical during the year 2021 with the support of expansions in the petrochemical industries, especially in Abu Dhabi and according to previous directions and current investments, it is expected that the UAE production of petrochemicals will reach 20 million tons Annually. “
It is expected that the UAE will achieve 8-10% annually in the petrochemical sector during the next 5 years, and the state aims to increase the production of poly ovelines and specialized chemicals to keep pace with the growing demand globally.
Some indicators highlight the growth of the sector, the most important of which are: Bruges achieved profits of $ 1.23 billion during 2024, an increase of 24% compared to 2023. Its sales increased to 5.3 million tons, which is the highest level reached by the company.
The increase in production is driven by major expansion projects, such as the “Enhanced” project in Ruwais, the investments of “Borouge”, and the trend towards the production of advanced Petrochemical materials with added value, and the “ADNOC” acquisition of international chemical companies enhances the sector’s growth.
“The ENRERGONAL” added: The sector in the UAE witnessed many strategic developments that strengthened the role of the state as a major player in the industry regionally and globally, most notably: the Abu Dhabi National Oil Company (ADNOC) completed the acquisition of the acquisition of the German company “Cofisro”, which specializes in the production of advanced chemicals, with a value of $ 13 billion, which enhances the UAE capabilities in producing specialized chemicals and opening new markets to Its products.
In partnership with the Austrian company OMV, ADNOC announced the integration of their assets into the petrochemical sector to establish “Bruges Group International”, with a market value of $ 60 billion with the aim of expanding poly Octins production operations, making the group the fourth largest company in this sector in the world.
In November 2024, ADNOC 1924 established contracts worth $ 196.2 million on 11 local companies, with the aim of enhancing dependence on products manufactured inside the Emirates.
“Interrogunal” stated that the UAE has witnessed a remarkable development in the petrochemical sector with the implementation of several strategic projects to enhance its productive capabilities and expand its products, the most prominent of which were: infrastructure projects for the “promotion” system for chemicals and transition fuel: where it announced “strengthening”, the joint project between “ADNOC” and “ADQ”, on the award of contracts worth 7.34 billion dirhams To implement engineering, purchases and construction work for a number of basic infrastructure projects in the industrial city of Al -Dhafra.
These projects include: a port dedicated to chemicals to facilitate the export of “methanol” and “ammonia” low carbon and the new industrial chemicals produced for the first time in the Emirates and the chemical station that: it includes storage warehouses, pipelines, an internal pipeline, and the storage of liquid products.
The project comes within the “strengthening” efforts of the creation of a local supply chain for low -carbon chemical materials, and to support ADNOC strategy for growth and expansion in the field of chemicals, with an ambition to become among the five largest international companies producing them.
“Enhanced” plans to start production operations in 2027, with the aim of producing 4.7 million tons annually of chemicals by 2028. The first stage includes the production of 6 chemicals locally for the first time in the Emirates, namely: caustic materials, ethylene chloride, vinyl chloride, polyvinyl chloride, ammonia and methanol in order to reduce dependence on importing these materials, promoting national content, support Local industries such as building materials, agriculture, and health care.
The low -carbon ammonia production project comes within the “strengthening” projects, to produce low -carbon ammonia with a capacity of one million tons annually to meet the increasing demand for transitional fuel and low -carbon chemical materials in the regional and global markets and also “strengthening” the construction of the methanol factory in the industrial city of Royce.
“These projects show the UAE’s commitment to enhancing its capabilities in the petrochemical industry, developing a local supply chain, supporting economic diversification in the country, and the UAE has a distinctive geographical location that allows it to export petrochemical products to Asian, European and African markets easily.
It strengthened partnerships with China, India, and Europe helps in developing petrochemical projects and benefiting from major consumer markets, and expansion comes globally, as the UAE plans to invest billions of dollars in the coming years to enhance its productive capabilities in emerging markets, especially in Asia and Europe.
China is one of the most prominent markets for Emirati petrochemical, as it imported about two billion dollars from the UAE, representing 12% of the total Gulf petrochemical exports to China, the value of the imports of African markets of petrochemicals amounted to 249 million dollars from the Emirates, representing 2.6% of total imports.

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