In its sectoral report, Dhaman reveals that 5 countries acquired 76% of projects and 73.8% of Capex

“Dhaman”: Arab countries attracted 461 foreign projects worth $163 billion in the chemicals sector over 22 years

Low risks and high Low risks and high incentives for investment in four Arab countries in 2024 according to Fitch Rating

The Arab Investment & Export Credit Guarantee Corporation (Dhaman) revealed that the chemicals sector attracted 461 projects implemented by 313 foreign and Arab companies with Capex of more than $163 billion during the period between January 2003 and June 2024, i.e. nearly 22 years.

In its second sectoral report on petrochemicals and chemicals sector in Arab countries for 2024, issued by the corporation at its headquarters in the State of Kuwait On August 11, 2024, Dhaman said five Arab countries, notably UAE, Saudi Arabia, Egypt, Morocco and Qatar attracted 352 projects, making up 76% of the total, with Capex of more than $120 billion, accounting for 73.8% of the total, creating 68.5 thousands jobs, representing 68.4%.

The report covers four main pillars of the sector: 1- the evolution and future of the petrochemical sector capacity until 2028, 2- foreign trade in chemicals for 2023, 3- foreign projects in the sector, 4- assessment of the sector’s investment and business risks. It showed that the U.S. took the lead as the most important investor in the Arab region in the chemicals sector with 85 projects, making up 18% of the total, and Capex of $56.2 billion, representing 34%.

The report noted that the top 10 companies accounted for roughly 15% of the number of new projects, 42.5% of the Capex, and 32.2% of the new jobs created. The American Dow Chemical came first in the number of projects and Capex with 11 projects and Capex exceeding $23 billion, accounting for 14.1% of the total, while Chevron Philipps Chemical was ranked first in the number of new jobs by creating over 6,000 jobs, representing 6.2% of the total.

Regarding investment and business risks and incentives in the petrochemical sector in six Arab countries according to Fitch Rating for 2024, they were monitored through two main

indicators: risks of (country) and (industry) and incentives of (country) and (industry). Based on the indicator’s 2024 results, Saudi Arabia was at the front of the list as the best Arab country due

to lower risks and higher incentives in the petrochemical sector, followed by UAE, Qatar and Egypt respectively, while Algeria was at the tail end.

The report predicted a slight rise in the Arab region’s petrochemical production capacity to 167.4 million tons per annum in 2024, accounting for around 12.1% of the global total. Yet, it is forecast to keep hiking by 30.7% to 219 million tons annually by 2028.

The report expected the Arab region’s ethylene production capacity to stand at 27.3 million tons per annum in 2024, making up roughly 12% of the global total, amid forecasts of a 57% rise to 42.8 million tons annually by 2028. The annual propylene production capacity of Arab countries is also anticipated to stand at 7.8 million tons in 2024, making up 10.5% of the global total, hiking by 54% to 12 million tons per year by 2028.

As for foreign trade in Arab countries’ chemical sector, the report showed a 6% drop to $257.7 billion in 2023, as a result of a 10% fall in Arab chemical exports and a 1.2% decline in imports in the same year.

It indicated that China was at the front as the region’s top chemical exporter with $14.4 billion or 12.1% of overall Arab chemical imports, and also led as the top importer with 14% of the region’s overall chemical exports with $19.8 billion.

It added that plastic products of all types topped the list of Arab chemical exports in 2023 with $53.6 billion or more than 38.5% of the total. Medicinal and pharmaceutical products were at the forefront of Arab chemical imports in the same year with $30.5 billion or more than 25.8% of the total.