GCC Chemicals Fact Sheet

1
GCC PETROCHEMICALS
& CHEMICALS INDUSTRY
Facts & Figures 2012
GCPA_2012_Facts_Figures_1111.indd 1 12.11.13 18:33
About The Gul f Petrochemi cal s
and Chemi cal s Associ ati on
(GPCA):
The Gulf Petrochemicals and Chemicals Association
(GPCAj is a dedicated and non-proft making
association serving all its members with a variety of
data, technical assistance and resources required by
the petrochemicals and chemicals industry. GPCA's
mission is singular and specifc in that it intends to
support the growth and sustainable development of
the petrochemical and chemical industries in the Gulf
in partnership with its members and stakeholders and
be both a sounding board and a meeting point for
debate and discussion. lt is the frst such association n
to represent the interests of the industry in the Middle
East and it has brought a major dimension to its task by
creating both a forum for discussion and a place where
likeminded people can meet and share concepts and
ideas. Since its inception in March 2006, the GPCA has
earned the enviable reputation for steering the regional
industry towards a whole new level of co-operation
and raising the standard in terms of common ground
interests.

Additional information is available at www.gpca.org.ae
Facts & Figures 2012
GCC PETROCHEMICALS
& CHEMICALS INDUSTRY
GCC Petrochemicals & Chemicals Industry Facts & Figures 2012
Tabl e of
Cont ent s
1. Preface 06
2. About Chemicals Industry 07
3. GCC Chemicals Industry and Economy
in 2012

11
3.1. Contribution of the chemicals industry
to regional and national GDP 13
3.2. Contribution of chemicals industry
to manufacturing output 20
3.3. Industries dependent upon chemicals
industry 21
3.4. Share of Chemicals in non-oil exports
on regional and national levels 22
4. GCC Production Capacity by Product
(2008-2012) 23
4.1. GCC Capacity: Breakdown
by Product Segment 26
4.2. GCC Capacity: Breakdown
by Value-chain 28
4.3. Basic Petrochemicals 29
4.4. Fertilizers 30
4.5. Polymers 32
4.6. Top 10 chemical products produced
in the GCC 34
4.7. Global Share of GCC top 10 Products 35
5. GCC Production Capacity by Country
(2008-2012) 45
5.1. GCC Production Capacity by Country 46
5.2. Basic Petrochemicals: Breakdown
by Country 47
5.3. Fertilizers: Breakdown by Country 48
5.4. Polymers: Breakdown by Country 49
5.5. Fine Chemicals: Breakdown by Country 50

6. GCC Capacity Utilization (2011-2012) 51
6.1. Capacity Utilization by Country 52
6.2. Capacity Utilization by product segment 53
6.3. Worldwide and GCC Capacity
Utilization Comparisons 54
7. GCC Chemicals Industry Growth Pattern
(2012) 55
7.1. Production, Regional Consumption
and International Trade 56
7.2. Chemicals industry growth performance
against total manufacturing 57
7.3. International comparison of GCC
chemicals production growth by
product segment 58
7.4. International comparison of GCC
chemicals production growth by region 59
8. Global Chemicals Industry (2012) 61
8.1. World chemicals output 62
8.2. World chemicals export by Region
and Country 64
8.3. World chemicals import by Region
and Country 66
8.4. World chemicals consumption
by Region and Country 68

9. International Trade (2012) 69
9.1. GCC Export by product segment 71
9.2. GCC Import by product segment 73
9.3. GCC Export by country 75
9.4. GCC Import by country 76
9.5. GCC Export by destination 77
9.6. GCC Import by origin 79
9.7. GCC international trade balance:
breakdown by product segment 80
4
5 04 Gulf Petrochemicals & Chemicals Association
9.8. GCC international trade balance:
breakdown by country 81
9.9. Detailed analysis of GCC exports by
destination 82
9.10. GCC Chemicals trade fows by
major regions 85
10. GCC Intra-Regional Trade (2012) 87
10.1. Intra GCC export by product segment 88
10.2. Intra GCC export in total chemicals
export 90
10.3. Intra GCC export in value terms 91
10.4. Intra GCC import in total chemicals
import 92
11. Employment (2012) 93
11.1. Employment in GCC chemicals
industry 94
11.2. International comparisons of GCC
chemicals employment 96
11.3. Employment in GCC chemicals
industry by occupation 98
11.4. Employment in GCC manufacturing
and chemicals industry 100
11.5. Workforce nationalization in GCC
chemicals industry 101
11.6. GCC employee productivity:
chemicals sector and manufacturing 102
12. Sales Revenue (2012) 103
12.1. GCC Petrochemicals Industry Sales
Revenue by Country 104
12.2. Share of GCC in Worldwide
Chemicals Sales Revenues 106
13. Research and Development (2011) 109
13.1. Number of chemicals patents issued
worldwide and in the GCC 110
13.2. New patent applications in the feld
of chemistry worldwide and GCC 112
13.3. R&D spending 114
5
GCC Petrochemicals & Chemicals Industry Facts & Figures 2012 6
A message from
the Secretary General
l am delighted to introduce our fagship statistical
publication the GCC Petrochemicals & Chemicals
lndustry Facts and Figures" for the year 2012 which
highlight key performance indicators for the GCC
petrochemicals and chemicals industry during the
calendar year of 2012.
Consistent with one of the three pillars in GPCA's
strategy namely the thought leadership", we made
dedicated efforts to enhance the content of the 2012
edition. ln addition to the sections in the previous
edition, this year we have provided information about
GCC intra-regional trade, an overview of the global
chemicals industry and an analysis of the industry's
socio-economic contribution.
This report is produced in-house sourcing the data
and information from our member companies as
well as our regional and international partners. lt is
fair to state that GPCA had been able to realize this
milestone in our journey towards providing credible
data and business intelligence to our members and
stakeholders only through the continued support
from our member companies and stakeholders. Thus,
l would like to thank them all for making key data
and information available to GPCA without which
this report would have not been possible. GPCA is
committed to continuing working with our members
and partners to provide useful reference publications.
Looking forward, GPCA plans to continue investing
in developing relevant industry content in line with
our objective to be the premier provider of industry
knowledge and services to our members and
stakeholders.
Dr. Abdulwahab Al-Sadoun
Secretary General
Gulf Petrochemicals & Chemicals Association 7
About Chemi cal s
I ndustry
2.
9. International Trade (2012)
Chemi cal s Li f e Cycl e
Chemicals industry takes natural raw materials such as oil and natural gas, as well inorganic minerals such
as limestone and salt and converts them into thousands of chemical products. Based on the United Nations
Environmental Program, there are about 248,000 chemical products known to date. Chemicals industry serves
nearly every sector of economy by providing essential inputs in the form of chemical productions or solutions. As
defned by UN Industrial Classifcation System ISIC Rev.3, chemicals industry includes:
ISIC Rev.3
Reference
Description
2401
Manufacture of basic
Chemicals
Manufacture of basic chemicals, except fertilizers and nitrogen
compounds
Manufacture of fertilizers and nitrogen compounds
Manufacture of plastics in primary forms and of synthetic rubber
2402
Manufacture of other
chemical products
Manufacture of pesticides and other agro-chemical products
Manufacture of paints, varnishes and similar coatings, printing ink and
mastics
Manufacture of pharmaceuticals, medicinal chemicals and botanical
products
Manufacture of soap and detergents, cleaning and polishing
preparations, perfumes and toilet preparations
Manufacture of other chemical products
2403
Manufacture of man-
made fbers
Manufacture of man-made fbers
As described above, output of the chemicals industry includes base products, intermediate products, specialties
and refned chemicals as well as fnished products and pharmaceuticals.
Chemicals life cycle starts with extraction of raw materials (mining, extraction of oil and gas and others) which
are used in chemicals manufacturing, processing and refning. Manufactured bulk chemicals are used to produce
a wide variety of downstream chemical products. These chemical products can, in turn, be used as feedstock for
chemicals production further downstream, industrial activities and services, or production of consumer products.
At any stage of life cycle, chemicals are being shipped to various locations within the country of its production or
internationally.
2. About the Chemicals Industry
Raw materials
(oil, coal, gas, air, water, minerals)
Chemicals processing / refning
Basic inorganic and organics i.e. ammonia, gases,
acids, salts
Petrochemicals: Benzene, Ethylene, Propylene,
Xylene, Toluene, Butadiene, Methane, Butylene
Chemicals processing
Fertilizers, industrial chemicals, plastics, propylene
oxide, resins, elastomers, fbers
CONSUMERS
SPECIALTY
CHEMICALS
CONSUMER CARE
PRODUCTS
LIFE SCIENCE
Pharmaceuticals,
Agrochemicals,
Biotechnology
OTHER
INDUSTRIES
Metals, Gas,
Automobiles,
Textiles etc.
Source: OECD, 2001
2. About the Chemicals Industry

2nd largest
manufacturing sector
Every job in the industry
creates
3 additional jobs elsewhere
Directly employs more than people
138,700 people
34% of all
employees in the
chemicals industry are
national citizens
$US 97.3 billion
worth of chemicals output in 2012
Chemicals products are
integral part
of various industries in GCC economy
Chemicals comprise 47%
of GCC non-oil export in 2012
Production capacity of
129.2 million tons
in 2012
Growth of 12.2%
per annum
between 2008 and 2012
Represents 2.9%
of GCC GDP in 2012
3.
The GCC chemi cal s
i ndust r y: an enabl er of
economi c devel opment
3. GCC Chemical Industry and Economy in 2012
The chemicals and petrochemicals industry in the
GCC plays pivotal role in the development of the
regional and national economies. The industry has
changed drastically in the last decades with GCC
emerging as a major hub for the global chemical
industry. Thirty years ago, GCC was a net importer
of chemicals, whereas currently the vast majority of
chemicals production exported to global markets. The
chemicals industry has a large impact on the economy,
particularly in terms of value addition and job creation.
It is believed that the chemicals industry will play a
pivotal role in enabling development as the GCC
economies go through structural challenges related
to industrialization, economic diversifcation and the
creation of new employment opportunities.
At the heart of the chemicals industrys continued
growth is the availability of, and access to, natural gas
feedstock and refnery petrochemical integration. The
GCC enjoys signifcant energy advantages: nearly
one-third of the worlds oil and quarter of worlds
natural gas reserves are found in the region, however,
competition for the natural gas from other industries
such as power generation and water desalination had
led to constraint in supply of the gas to the chemical
industry in the GCC region.
The chemicals industry plays a key role in enabling
improved standards of living and quality of life. It
provides the basis for a variety of economic activities
within downstream industries including: textiles,
plastics, agriculture, construction, oil and gas
extraction, healthcare and electronics.
Chemi cal s i ndust r y
cont r i but i on t o GDP
of GCC
GCC (Gulf Cooperation Council)
comprised of Bahrain, Kuwait,
Oman, Qatar, Saudi Arabia, and
the United Arab Emirates continues
to play a vital role in the global and
regional economy. GCC economies
are the largest in the MENA region.
Growth in the GCC remains robust
supported by the combination
of historically high oil prices,
expanded oil production and low
interest rates. Fiscal and external
surpluses are large, infation is
moderate and prospects for growth
remain positive.
However, GCC economies are
heavily dependent on hydrocarbon
extraction which accounts for
48.1% of the GDP. For example,
Saudi Arabia is the largest oil
exporter in the world and is at
present the only producer with
signifcant spare capacity that can
be used to stabilize global energy
markets. GCC region accounted
for 2.1% of worlds GDP at current
prices.
The manufacturing sector which
includes the petrochemicals and
chemicals sector represented
9.3% of regions GDP in 2012.
The value added contribution of
the manufacturing sector in 2012
is estimated at $US143.6 billion.
Out of this petrochemicals and
chemicals represented 31% or
$US45.2 billion in value addition to
the economy.
GCC: GPD (current prices) by main economic activities, 2012
Source: National Statistical Authorities, GPCA Analysis, 2013
Transport, Storage
& Communication
Finance Insurance, Real Estate
& Business Services 5.5%
11.1%
Agriculture, Forestry
& Fishing
1.1%
Refining Sector 2.3%
Petrochemicals & Chemicals 2.9%
Other Manufacturing 4.1%
Manufacturing
9.3%
Others
11.2%
Wholesale & Retail Trade,
Restaurants and Hotels
8.5%
Crude Petroleum
& Natural Gas
48.0%
Construction
5.3%
GCC: Manufacturing GDP (current prices) by Sub-Sectors, 2008-2012
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012
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(
%
)
Other manufacturing Petrochemicals and chemicals Refining Sector
24.9%
22.7%
25.9%
23.8% 24.2%
26.4%
23.8%
25.5% 30.2%
31.3%
48.6%
53.5%
48.6%
46.0% 44.5%
Saudi Arabia has been one of the
best performing economies in the
recent years, with the average rate
of real GDP growth during 2008-
2012 third highest behind China
and India. In 2012 Saudi Arabias
economy continued to perform
well with real GDP growth of 5.1%,
down from 8.6% in 2011. In 2012,
Saudi Arabias GDP is estimated
at $US 711 billion. The World
Bank ranks Saudi Arabia as the
19th largest economy in the world,
representing 1% of worlds GDP.
The manufacturing sector which
includes the petrochemicals and
chemicals sector accounted for
10.1% of Saudi Arabias real GDP
in 2012. The value added of the
manufacturing sector in 2012 is
estimated at $US71.6 billion. Out
of this the petrochemicals and
chemicals sector represents 37.6%
in 2012 or $US26.9 billion in value
addition to the economy.
Saudi Arabia: GPD (current prices) by main economic activities, 2012
Saudi Arabia: Manufacturing GDP (current prices) by Sub-Sectors,
2008 - 2012
Transport, Storage
& Communication
& Business Services
4.7%
8.0%
& Fishing
1.9%
Manufacturing
10.1%
Others
15.8%
8.2%
Crude Petroleum
& Natural Gas
46.9%
Construction
4.4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012
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(
%
)
26.3% 26.8%
29.2%
25.5% 26.1%
39.0%
32.3%
31.7%
34.7%
37.6%
34.8%
40.9%
39.1% 39.8%
36.3%
of Saudi Ar abi a
2012 value add
of Saudi Arabias
chemicals sector to
economy is estimated
at $US26.9 billion.
Transport, Storage
& Communication
& Business Services
8.0%
17.4%
& Fishing
0.7%
Manufacturing
9.0%
Others
3.2%
12.6%
Crude Petroleum
& Natural Gas
40.2%
Construction
8.9%
In 2012, the economic recovery in
the UAE continued to strengthen
the countrys economy. Economic
growth based on real GDP has
reached 4.4% year-on-year in
2012, an increase from 3.9% in
2011. In 2012 the GDP of the UAE
(at current prices) was $US 384
billion. The World Bank ranks the
UAE as the 32nd largest economy
in the world accounting for 0.5%
of global GDP at current prices.
Within the GCC region, UAEs GDP
per capita is third highest after
Qatar and Kuwait.
In 2012 the manufacturing sector
of the UAE grew by 11.7% in
comparison with the previous year
and contributed 9% to GDP at
current prices. Value addition of
the manufacturing sector in 2012 is
estimated at $US34.4 billion. The
contribution of the petrochemicals
and chemicals sector is 19.7% or
$US6.7 billion in value addition to
the economy.
United Arab Emirates: GPD (current prices) by main economic
activities, 2012
United Arab Emirates: Manufacturing GDP (current prices) by
Sub-Sectors, 2008 - 2012
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012
C
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(
%
)
9.8% 8.9% 9.2% 10.1% 10.1%
15.8%
12.0%
16.2%
20.2% 19.7%
74.4%
79.1%
74.6%
69.7% 70.2%
of t he UAE
2012 value add of
UAEs chemicals
sector to economy is
estimated at $US6.7
billion
Qatar is worlds fastest growing
economy with real GDP growth
of 12% between 2008 and 2012.
2012 was a year of stabilization
with real GDP growing by 6.2%.
Non-hydrocarbon sector was a key
contributor to this growth which
grew by 10% in 2012. This is in
line with the National Development
Strategy which revolves around
economic diversifcation and growth
in the non-hydrocarbon sectors:
manufacturing, construction,
transport and communications,
trade and hotels, and services
sectors. The GDP of Qatar at
current prices was $US 192 billion.
As per the World Bank ranking,
Qatar is the 53rd largest economy
in the world and accounted for
0.2% of global GDP at current
prices. Qatar has the highest GDP
per capita among other GCC states
and the 4th highest globally.
The manufacturing sector, including
the refning and chemicals sector
represented 9.9% of Qatars
nominal GDP in 2012. The
value added contribution of the
manufacturing sector to economy
in 2012 is estimated at $US18.2
billion, out of which the chemicals
sector represented 35.5% or
$US6.7 billion
Qatar: GPD (current prices) by main economic activities, 2012
Qatar: Manufacturing GDP (current prices) by Sub-Sectors,
2008 - 2012
28.2%
13.6%
32.2%
26.7% 26.7%
19.6%
17.7%
19.8%
37.0% 35.5%
52.2%
68.7%
48.1%
36.4% 37.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012
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(
%
)
of Qat ar
Transport, Storage
& Communication
& Business Services
3.3%
10.2%
& Fishing
0.1%
Manufacturing
9.9%
Others
8.7%
5.6%
Crude Petroleum
& Natural Gas
57.8%
Construction
4.4%
Qatar is worlds fastest
growing economy with
real GDP growth of
12% between 2008
and 2012.
In 2012 economic growth in Kuwait
was maintained at 6.2% largely due
to the oil sector where production
and prices remained high. In 2012
Kuwaits oil sector grew by 10%,
while non-oil sector growth was
4%. Kuwaits GDP at current
prices in 2012 reached $US166.7
billion and the GDP per capita is
second highest in the GCC region
after Qatar and top 15th on a global
level.
Constituting approximately 4.6%
of GDP at current prices, the
manufacturing sector in Kuwait is
expected to be a key benefciary
of the Kuwait Development Plan.
Kuwaits economic growth is
expected to increase the demand
for manufactured products.
The total size of value added of
manufacturing sector in 2012 is
estimated at $US7.7 billion. The
chemicals sector represented 10%
of manufacturing value add in 2012
or $US0.77 billion.
Kuwait: GPD (current prices) by main economic activities, 2012
Kuwait: Manufacturing GDP (current prices) by Sub-Sectors,
2008 - 2012
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012
C
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(
%
)
47.8%
51.9%
56.6% 57.2%
54.4%
18.4%
12.0%
10.4% 10.6%
10.1%
33.8%
36.1%
32.9% 32.2%
35.5%
of Kuwai t
Transport, Storage
& Communication
& Business Services
5.7%
10.0%
& Fishing
0.2%
Manufacturing
4.6%
Others
12.0%
1.7%
Crude Petroleum
& Natural Gas
62.1%
Construction
3.7%
2012 value added of
Kuwaits chemicals
sector represented
10% of manufacturing
total.
Omans economy continued
to grow in 2012 supported by
increased oil production and
high oil prices. Overall, the IMF
projected real GDP growth to have
reached 5% in 2012, up from 4.5%
in 2011. The non-oil sector grew by
5.8% in 2012, supported by public
investment, and increased activity
in services sector.
The manufacturing sector in Oman
has demonstrated promising
growth over the past decades. It
is the second largest sector after
oil & gas and accounts for 10.1%
of GDP at current prices. Heavy
industries such as refning and
chemicals represent the majority of
the manufacturing value addition.
In 2012, total value added of the
manufacturing sector is estimated
at $US7.7 billion out of which the
petrochemicals and chemicals
sectors contribution was $US3.5
billion.
Oman: GPD (current prices) by main economic activities, 2012
Oman: Manufacturing GDP (current prices) by Sub-Sectors,
2008 - 2012
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012
C
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(
%
)
45.6%
31.5% 31.8%
29.2%
32.0%
8.6%
23.5%
34.9%
44.6%
45.3%
45.8% 45.0%
33.2%
26.2%
22.7%
of Oman
Transport, Storage
& Communication
& Business Services
5.0%
7.6%
& Fishing
1.1%
Manufacturing
10.1%
Others
11.1%
8.1%
Crude Petroleum
& Natural Gas
52.2%
Construction
4.8%
The manufacturing
sector in Oman
has demonstrated
promising growth over
the past decades.
In 2012, real GDP growth in
Bahrain was 4.8%. This is more
than twice the 2011 level of
2.1%. The hydrocarbon sector
suffered a contraction in 2012
which was offset by the growth in
manufacturing and government
services. Growth in the hospitality
sector was the fastest in 2012 as a
rebound from 2011.
The manufacturing sector is
dominated by energy-intensive
industries such as aluminum,
refning, chemicals and steel and
in 2012 contributed 15% of GDP
at current prices. At current prices,
the chemicals industry accounted
for 11.1% of the manufacturing
sectors GDP in 2012. Value added
of the manufacturing sector in
2012 is estimated at $US4 billion,
out of which the contribution of the
chemicals sector is estimated at
$US0.4 billion.
Bahrain: GPD (current prices) by main economic activities, 2012
Bahrain: Manufacturing GDP (current prices) by Sub-Sectors,
2008 - 2012
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010 2011 2012
C
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(
%
)
28.9%
22.9% 22.8% 23.3% 23.3%
17.0%
14.7% 13.4% 13.0%
11.1%
54.1%
62.5% 63.8% 63.7%
65.6%
of Bahr ai n
Transport, Storage
& Communication
6.4%
& Business Services
26.0%
& Fishing
0.3%
Manufacturing
15.0%
Others
14.1%
6.3%
Crude Petroleum
& Natural Gas
25.2%
Construction
6.1%
Manufacturing sectors
contribution to the
GDP of 15% in Bahrain
is highest among other
GCC countries.
Traditionally, the manufacturing sector in the GCC
has been viewed as integral part of economic
diversifcation. Inexpensive energy and availability of
infrastructure and resources were the factors driving
industrial growth in the region. Regional oil & gas
resources enabled development of the refning and
chemicals industry. These two sectors represent
more than half of the total manufacturing output which
was estimated at $US404.1 billion in 2012. Due to
production capacity expansions and surging prices, the
output of the refning and chemicals sector has grown
rapidly over the past fve years. The chemicals sector
is the second largest manufacturing sector in the
region and in 2012 represented approximately 24% of
GCC Manufacturing Output by Industry, $US billion
Note: 2011 and 2012 are preliminary
Source: UNIDO, Statistical Authorities, GPCA Estimates, 2013
87.0
71.6
89.5
108.0 114.0
52.1
48.1
64.1
93.9
97.4
27.5
24.6
27.2
26.5
33.4
20.6
22.0
23.8
25.8
27.8
17.7
15.7
18.4
18.3
22.0
77.6
67.0
81.5
96.0
109.5
282.6
249.2
304.5
368.5
404.1
0
50
100
150
200
250
300
350
400
450
2008 2009 2010 2011 2012
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(
$
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n
)
Refining Chemicals Non-metallic mineral products
Food products & beverages Basic Metals Others
CAGR (2008-2012)
9.4%
Cont r i but i on of
chemi cal s i ndust r y t o
manuf act ur i ng out put
the regions manufacturing output. Between 2008 and
2012 chemicals output grew at an average of 16.9%
per annum, higher than in any other sector. As a result,
the share of chemicals industry in total manufacturing
output has increased from 18% in 2008 to 24% in
2012.
Chemicals sector is the second
largest manufacturing sector
in the GCC.
I ndust r i es dependent
upon chemi cal s
i ndust r y
Chemicals products are an integral part of various
industries. Looking downstream, the economy
depends upon chemicals industry at four levels:
1. Actual production of chemicals;
2. Industries manufacturing industrial products that
purchase chemicals and use them to make these
products that are the raw materials or intermediate
inputs for other industries;
3. Industries manufacturing consumer products and
other fnal goods which purchase chemicals directly
or buy industrial parts and components based on
chemistry;
4. Wholesale, retail and service industries based on
chemistry-derived products
Source: American Chemistry Council
Almost every industry procure products or services that
originate from the chemicals industry. An example is
the GCC oil & gas production sector accounts for 48%
of the regional GDP and uses a variety of chemicals
in the oil production process. The main chemicals
used in the oil & gas sector are drilling and well
chemicals, production chemicals, injection chemicals,
pipeline chemicals, gas treatment chemicals and utility
chemicals. Chemicals consumption by GCC oil & gas
production and mining is estimated at $US22.5 bn.
Value of chemical inputs supplied to GCC industries 2012, $US million
Note: Includes chemicals inputs of imported and locally produced chemicals. GCC chemicals sales by industry are estimated based on the
chemicals consumption by industries and their relative value added for economies with available data.
Source: GPCA Estimates, 2013
18
75
76
87
199
301
303
479
502
691
741
781
1'216
1'362
2'051
3'232
3'304
3'707
3'886
4'305
9'229
22'529
Medical, Precision & optical instruments
Other transport equipment
Motor Vehicles
Furniture Manufacturing
Publishing & printing
Textiles
Wood Products Manufacturing
Paper & paper products Manufacturing
Food products & beverages Manufacturing
Machinery & Equipment Manufacturing
Electrical Machinery Manufacturing
Wearing Apparel Manufacturing
Non-metallic mineral products
Coke & Rened Petroleum
Construction
Rubber & Plastic Products Manufacturing
Electricity and Water
Basic metals Manufacturing
Agriculture, Forestry & Fishing
Real Estate & Business Services
Wholesale & Retail Trade, Restaurants and Hotels
Crude Petroleum, Natural Gas, Mining
Most manufactured goods are directly touched by
chemistry. Within GCC manufacturing, the largest
users of chemicals are rubber & plastic products
manufacturing, petroleum refning, basic metals
manufacturing, non-metallic mineral products. In
addition to the chemicals sales to be used as raw
materials in rubber and plastics production such as
synthetic rubber and of basic chemicals such as
chlorine, caustic soda, and titanium dioxide, there are
number of specialty chemicals used in the production.
Rubber processing chemicals are functional chemicals
are used to facilitate processing or to improve the
properties of the fnal rubber product. They include
accelerators, activators, anti-ozonants, antioxidants,
stabilizers, and vulcanizing agents, among others.
Plastic additives include chemicals that are added to
plastic resin to facilitate processing of plastic resin
to enhance or modify the fnal properties of plastic
products. Some of them are antioxidants, antistatic
agents, blowing agents, colorants, fame retardants,
heat and other stabilizers, lubricants, plasticizers,
reinforcing agents and UV absorbers.
With no natural drinking water sources, water
treatment is an important area for the region. Water
management chemicals used include biocides,
coagulants, defoamers, focculants, scale inhibitors,
and corrosion inhibitors.
Shar e of Chemi cal s
i n non- oi l expor t s on
r egi onal and nat i onal
l evel s
GCC exports is still highly dependent on the
hydrocarbon sector which accounts for more than
80% of export value. Globally the hydrocarbon sector
accounts for approximately 68% of export value.
GCC non-oil export grew by an average 20% per
annum between 2001 and 2012. Qatar registered the
highest growth of 24% per annum during the same
period, followed by the UAE and Saudi Arabia where
non-oil export grew by 21.4% and 20.6% per annum
respectively. As a result the share of non-oil export in
the total export of goods has increased from 15% in
2001 to 18% in 2012.
Examination of GCC non-oil export in 2012 shows
almost half or 47% of total non-oil export value was
generated from chemicals sector. Dependency of
non-oil exports on energy intensive industries such as
chemicals is different among GCC states. The highest
dependency has been observed in Qatar where
chemicals accounted for 68% of non-oil export in 2012.
In Saudi Arabia, the largest chemicals production
country within the GCC, chemicals accounted for 63%
of total non-oil export in 2012. Similarly, the share of
chemicals in non-oil export of Kuwait remains high
at 56%. In the rest of the GCC countries, chemicals
account for less than a half of non-oil export. Non-oil
export in the UAE is most diversifed, and chemicals
accounted for only 12% of the non-oil export.
GCC Non-Oil Export in 2012
12%
22%
41%
56%
63%
68%
88%
78%
59%
44%
37%
32%
UAE
Bahrain
Oman
Kuwait
Saudi Arabia
Qatar
$US 112.6
billion
47% 53%
Petrochemicals & Chemicals Other non-oil exports
GCC Product i on
Capaci t y by
Product ( 2008- 2012)
4.
I nt r oduct i on
The chemical industry is divided into a number of broad segments. GCC chemicals production can be described
by the following table:
Chemicals (excluding Pharmaceuticals) Product Segments
Source: Cefc, American Chemistry Council, 2013
Petrochemicals
Basic Chemicals Consumer Chemicals
Fine Chemicals
Intermediates
Fertilizers
Specialty Chemicals
Inorganic Chemicals
Basic Inorganics
Industrial Gases
Polymers
4. GCC Production Capacity by Product (2008-2012)
Petrochemicals
Basic Chemicals
Includes 7 major bulk (commodity) building blocks: Ethylene, Propylene, Methanol,
Aromatics (benzene, toluene and xylenes)
Intermediate
Chemicals
Represent next step of chemical conversion of basic petrochemicals and are used in
downstream derivates such as plastic resins, synthetic rubber, man-made fbers and others.
Fine Chemicals Chemicals produced in smaller scale and are used in production of fnal products
Polymers
Commodity thermoplastics, engineering plastics, Man-made fbers, Man-made rubber with
high degree of fexibility
Basic Inorganics
Fertilizers Various combinations of nitrogen, phosphorous, potassium
Industrial Gases
Includes oxygen, nitrogen, argon, carbon dioxide and hydrogen. Industrial gases are widely
used in the manufacturing processes with major industries including steel, chemicals
production, electronics and health care
Inorganic chemicals
Chemicals derived from metal and non-metallic minerals and dont contain carbon as
principle element
Specialty Chemicals
Adhesives
Chemicals used to bond two surfaces together and are mostly supplied to automotive,
construction, packaging sectors
Catalysts
Specialty chemicals that affect the speed of chemical reaction. They are mostly supplied to
oil refning, chemical processing industries
Coatings
Materials applied to protect or decorate surfaces and are mostly supplied to automotive,
transportation, construction, packaging and other industrial sectors
Cosmetic Additives
Functional chemicals and are used to improve performance of cosmetic and personal care
products
Crop Protection Products that help control plants from harmful insects, diseases and other related products
Dyes and Pigments Organic and inorganic chemicals used to impart color into other materials
Industrial Additives
Functional chemicals added to aid or facilitate industrial processes and enhance properties
of the fnal product
Lubricant Additives Functional chemicals added to lubricating oils to impart special properties
Paints and Inks Colored, liquid dispersions of dyes or pigments used to impart text and design
Other Specialties A number of other specialty chemicals exist
Consumer Chemicals
Consumer Chemicals
Chemicals sold directly to consumers and include chemicals products such as soaps and
detergents, cosmetics
GCC chemicals industry has been mostly concentrated around production of Petrochemicals, Polymers and
Basic Inorganics (Fertilizers and Inorganic Chemicals). They account for about 90% of the total chemicals
production in the region.
GCC Capaci t y
br eakdown by
pr oduct segment
Current production of GPCA member companies can
be grouped into the following product segments and
sub-segments:
Petrochemicals including:
basic petrochemicals
intermediates
fne chemicals
polymers
Basic Inorganics including:
fertilizers
inorganic chemicals
Specialty Chemicals
I Petrochemicals Segment:

Basic petrochemicals or commodity chemicals are
produced in large quantities. They are the basic
building blocks derived from hydrocarbon feedstock
and are used to produce other chemical products. In
2012, GCC basic petrochemicals capacity reached
44.1 million tons per annum which accounts for
34.1% of the regional chemicals capacity. Between
2008 and 2012, regional producers have expanded
their basic petrochemical production capacities by an
average rate of 13.2% per annum. This is higher than
the overall chemicals capacity growth of 12.2% per
annum.
Petrochemical intermediates represent the next step
in the chemical conversion of bulk petrochemicals and
are used in downstream derivatives such as plastic
resins, synthetic rubber, man-made fbers and others.
GCC capacity of intermediates has reached 12.6
million tons in 2012, representing 9.8% of the total
capacity in the region.
The fne chemicals group is comprised of organic
chemicals which are derived from bulk petrochemicals,
intermediates and other carbon sources. The
production capacity of fne chemicals in the GCC
is 14.8 million tons which represents 11.4% of the
regional chemicals capacity.
GCC polymers production is concentrated around
commodity thermoplastics. Over the past 5 years
polymers industry in the GCC has seen a remarkable
growth of CAGR 17% reaching 23.8 million tons in
2012. After basic petrochemicals and fertilizers, the
polymers segment is the third largest in the GCC
chemicals industry representing 18.4% of regions total
production capacity.
I Basic Inorganics Segment:
Fertilizers are various combinations of nitrogen,
phosphorous and potassium. The major end-users
of fertilizers are in the agriculture sector. Fertilizer
production in the GCC is the second largest product
sub-segment representing 23.3% of the total regional
capacity or 30.1 million tons per annum. Over the past
5 years GCC fertilizers production capacity grew by an
average 13.7% per annum.
Inorganic chemicals are derived from metal and
non-metal minerals and do not contain carbon as
a principle element. In 2012 the GCC production
capacity of inorganic chemicals reached 3.5 million
tons per annum which represents 2.7% of the total
capacity.
I Specialty Chemicals Segment:
GCC production capacity for specialty chemicals is
still in the early stages of development. Specialty
chemicals are produced in relatively small quantities
and have specialist end-use applications. They are
derived from petrochemical intermediates and other
industrial chemicals. As of 2012, the GCC capacity of
GPCA members was estimated at 0.24 million tons
which is 0.2% of the regional chemicals capacity.
GCC Chemicals Production Capacity by Product Segment
GCC Chemicals Capacity by Product Segment 2012
Total: 129.2 million tons
Source: Gulf Petrochemicals and Chemicals Association (GPCA), 2013
26.9
32.6
41.1 42.2 44.1
9.5
11.0
11.4
12.5
12.6
11.5
13.0
14.4
14.8
14.8
12.7
17.6
20.6
21.3
23.8
18.0
19.4
20.0
27.3
30.1
2.8
2.9
3.0
3.5
0.2
0.2
0.2
0.3
0.3
81.6
96.7
110.7
121.8
129.2
0
20
40
60
80
100
120
140
2008 2009 2010 2011 2012
M
i
l
l
i
o
n

T
o
n
s
3.5
CAGR (2008-2012)
12.2%
B
a
s
i
c

I
n
o
r
g
a
n
i
c
s
P
e
t
r
o
c
h
e
m
i
c
a
l
s
Polymers
18.4%
Fertilizers
23.3%
Inorganic chemicals 2.7%
Specialty Chemicals 0.2%
Fine Chemicals
11.4%
P
e
t
r
o
c
h
e
m
i
c
a
l
s
7
3
.
7
%
Intermediates
9.8%
Basics
34.1%
B
a
s
i
c

I
n
o
r
g
a
n
i
c
s
2
6
.
0
%
GCC Capaci t y
br eakdown by
val ue chai n
A wide range of chemicals products are the result of
the processing of organic and inorganic raw materials.
The majority of chemicals products in the GCC use
organic inputs such as oil and natural gas, which
contain hydrocarbons. Organic chemicals in the GCC
are represented by Methane (C1), Ethylene (C2),
Propylene (C3), Butadiene (C4) and Aromatics value
chains.
Chemical products based on the ethylene (C2) value
chain represent the majority of the regional output
and accounted for 38.6% of the total GCC Capacity
in 2012. This is equivalent to 49.9 million tons of
production capacity as of end of 2012. Currently the
ethylene value chain in the GCC is represented by
more than 60 different chemicals which aid various
industries which include food packaging, housewares,
automotive, insulations and other.
The second signifcant product group in the GCC is
comprised of methane (C1) based chemicals which
accounted for 32.2% of the total GCC capacity in
2012 or 41.6 million tons per annum. There are
approximately 50 different chemicals within the
methane value chain produced in the GCC. This
product group supplies products to the building
materials, plastics and agriculture industries.
GCC Chemicals Capacity by Value Chain
30.0 32.0 34.2
38.8
41.6
32.2
39.0
45.8
47.3
49.9 7.1
11.8
14.4
14.7
15.5
8.4
9.8
12.0
13.3
14.5
3.4
3.5
3.6
7.0
7.0
0.5
0.6
0.7
0.7
0.7
81.6
96.7
110.7
121.8
129.2
0
20
40
60
80
100
120
140
2008 2009 2010 2011 2012
M
i
l
l
i
o
n

T
o
n
s
CAGR (2008-2012)
12.2%
C1 Methane C2 Ethylene C3 Propylene

Aromatics Inorganics C4 Butadiene
GCC capacity to produce propylene (C3) based
products reached 15.5 million tons in 2012 which
accounted for 12% of regions total. With a low
capacity base in the region, there are approximately
45 propylene based products currently produced in
the GCC. Propylene based products serve as a basis
for products used in many downstream industries
including automotive, telecommunications, printing
and coatings. Over the past 5 years the production
of propylene (C3) based chemicals has seen an
expansion of CAGR 21.7% which the highest when
compared to other product groups.
Similarly to propylene (C3) based chemicals, the
aromatics value chain represented a minor share of
the total regional capacity in 2012, accounting for
11.2%. With approximately 55 different chemicals
produced from benzene, mixed xylenes and toluene,
this group supplies a variety of industries from
packaging to apparel, pharmaceuticals and spare
parts. Similarly to the propylene (C3) value chain, the
aromatics group is highly diversifed in the range of
chemicals currently produced when compared to the
ethylene (C1) and methane (C2) groups.
Inorganic chemicals accounted for 5.5% of the total
capacity in the region in 2012. There are more than
30 inorganic chemicals currently produced in the GCC.
The inorganic products segment has been expanding
at an average 20.3% per annum over the past 5 years.

Basi c Pet r ochemi cal s
capaci t y br eakdown
by pr oduct
Basic petrochemicals are comprised of bulk
(commodity) chemicals produced in large quantities
and are used to produce other chemicals and
specialties. Due to petrochemicals capacity
expansions in the region and availability of natural
gas feedstock, GCC capacity of basic petrochemicals
has been expanding at the compound annual growth
rate of 13.2% between 2008 and 2012. In 2012 total
capacity has reached 44.1 million tons per annum.
More than 90% of all organic downstream chemicals
are derived from 7 major bulk (commodity) chemicals.
Ethylene traditionally has been the main basic
petrochemical produced in the GCC. In 2012, ethylene
represented the majority or 49.2% of the regions total
basic petrochemicals capacity. In the GCC, ethylene is
mainly used to produce polyethylene (PE) with other
major users being ethylene oxide (EO), ethylene glycol
(EG) and polyvinyl chloride (PVC).
Methanol is the second largest commodity
petrochemical produced in the region which accounted
for 21.2% of the total basic petrochemicals capacity
in 2012 or 9.3 million tons. Between 2008 and 2012
GCC Basic Petrochemicals Capacity by Product
12.7
15.0
19.8 20.5
21.7
8.0
8.2
9.3
9.4
9.3
3.5
5.7
6.4
6.7
7.2
2.2
2.3
3.1
3.1
3.1
0.4
1.2
2.2
2.2
2.5
0.1
0.1
0.3
0.3
0.3
26.9
32.6
41.1
42.2
44.1
0
5
10
15
20
25
30
35
40
45
2008 2009 2010 2011 2012
M
i
l
l
i
o
n

T
o
n
s
CAGR (2008-2012)
13.2%
methanol capacity expansion of 3.9% per annum was
the lowest among other commodity chemicals in the
GCC. This is due to the fact that the majority of GCC
methanol is being exported.
Production capacity of propylene reached 7.2 million
tons in 2012 which represents 16.2% commodity
chemicals total. Propylene is mainly used to produce
polypropylene (PP), while other users include
producers of acrylonitrile (ACN), propylene oxide (PO)
and cumene and acrylic acid.
The Aromatics (benzene, toluene and xylenes)
accounted for 13.1% of regions capacity to produce
commodity chemicals in 2012. Benzene is the largest
aromatics produced in the GCC with production
capacity reaching 3 million tons in 2012. In the GCC,
benzene is used mainly to produce styrene monomer.
Since 2009, GCC producers have added signifcant
production capacity of xylenes and by 2012 regional
xylenes capacity has reached 2.5 million tons.
Fer t i l i zer s capaci t y
br eakdown by pr oduct
Fertilizers represent various combinations of
three basic elements (nitrogen, phosphorous and
potassium). Fertilizer industry insures that agricultural
business have nutrients they need to grow crops to
meet worlds requirements for food and energy. GCC
fertilizers production is mostly represented by nitrogen
production with ammonia and urea accounting for
88% of the total GCC fertilizers capacity in 2012 or
26.6 million tons. Most of the ammonia is utilized to
manufacture urea and which is the most important
nitrogen-based fertilizer. In 2012 GCC ammonia
production capacity was 11.3 million tons, growing
by an average 10.6% between 2008 and 2012. GCC
urea capacity in 2012 has crossed 15 million tons per
annum and accounts for 50.7% of the total fertilizer
production capacity in the region.
Signifcant quantities of Diammonium phosphate
(DAP) production commenced from 2011 and
represents 10.8% of the regional capacity. As a
Phosphorus fertilizer DAP is manufactured from
mineral deposits occurring in the nature.
GCC Fertilizers Production Capacity by Product
Note: Based on nameplate capacity
9.9
10.5
11.1
12.5
15.3
7.6
8.3
8.3
11.4
11.3
0.5
0.5
0.5
3.4
3.4
18.0
19.4
20.0
27.3
CAGR (2008-2012)
13.7%
30.1
0
5
10
15
20
25
30
35
2008 2009 2010 2011 2012
Urea Ammonia Diammonium phosphate (DAP)
Fertilizers main purpose is to provide essential
nutrients needed by the crops to the soil. As the
majority of GCC fertilizers production is concentrated
around production of single nutrient fertilizers such
as ammonia and urea, nitrogen is the main nutrient
provided by the GCC. As of 2012, nutrient provided
by the fertilizers produced in the GCC was equal to
8.4 million tons of nitrogen nutrients. This is about
8% of the worlds total nitrogen consumption which is
estimated at 104-105 million tons per annum (source:
IFA).
GCC fertilizers production is mostly
represented by nitrogen production
with ammonia and urea accounting
for 88%.
Fer t i l i zer s Nut r i ent s
Pr oduct i on
GCC Fertilizers Nutrients Production
Note: Nutrients productions is calculated based on production excluding captive consumption
0.1
5.8 5.8
7.3
8.4
6.2
0.1
0.1
0.2
0.8
5.9 5.9
6.3
7.6
9.2
0
1
2
3
4
5
6
7
8
9
10
2008 2009 2010 2011 2012
N
u
t
r
i
e
n
t
s

M
i
l
l
i
o
n

T
o
n
s
Nitrogen Phosphorus pentoxide (P2O5)
CAGR (2008-2012)
11.8%
Fertilizer industry insures that
agricultural business have nutrients
they need to grow crops to meet
worlds requirements for food and
energy.
Pol ymer s capaci t y
br eakdown by pr oduct
Polymers are compounds derived from one or more
petrochemical monomers like ethylene, styrene,
propylene and include commodity thermoplastics,
engineering resins and thermoplastic elastomers.
Between 2008 and 2012, GCC polymers production
capacity expanded by an average 17% per annum,
which is highest among other chemical product
segments. Among the numerous numbers of plastics
with variety of grades for each specifc application,
the 5 largest volume commodity thermoplastics are:
Polyethylene (LDPE, LLDPE, HDPE), Polypropylene
(PP), Polyvinylchloride (PVS), Polystyrene (PS and
EPS) and Terephthalate (PET). These products
dominate GCC polymers production.
Polyethylene (LDPE/ LLDPE / HDPE) accounted
for 55.3% of GCC polymers production capacity in
2012 or 13.2 million tons per annum. High density
polyethylene (HDPE) is a major polyethylene produced
in the GCC and accounted for 30% of 2012 polymers
production capacity. In volume terms, regional capacity
GCC Polymers Capacity by Product, Million Tons
3.6
4.7
5.7 6.0
7.1
3.2
4.2
4.3
4.3
4.3
1.0
1.4
1.4
1.4
1.7
3.4
5.7
7.6
7.6
8.0
0.9
0.9
0.9
0.9
1.4
0.7
0.7
0.7
1.0
1.3
12.7
17.6
20.6
21.3
23.8
0
5
10
15
20
25
2008 2009 2010 2011 2012
M
i
l
l
i
o
n

T
o
n
s
CAGR (2008-2012)
17%
P
e
t
r
o
c
h
e
m
i
c
a
l
s
of HDPE in 2012 reached 7.1 million tons. In 2012
alone GCC producers have added around 1 million
tons of HDPE capacity which represents 18.8% year-
on-year growth. Major users of HDPE are producers
of blow-moulded products such as bottles, packaging
containers, drums, car fuel tanks, toys and household
goods; producers of injection-moulded products such
as crates, pallets, packaging containers, house wares
and toys.
With production capacity of 4.3 million tons at the end
of 2012, linear low density polyethylene (LLDPE) is
the second largest polyethylene resin produced in the
GCC. LLDPE accounted for 18.1% of GCC polymers
production capacity in 2012. Over the past few years
there haven`t been signifcant capacity additions of
LLDPE in the GCC, hence, its production capacity
between 2008 and 2012 was 8.1% per annum, the
lowest among other polymers. LLDPE is mostly used
as flm for food and non-food packaging, shrink and
stretch flm and non-packaging uses. Other uses for
LLDPE include injection-moulding products and wire
and cable applications.
GCC Polymers Capacity 2012
Total 23.8 million tons
PET
5.7%
PC
1.1%
Polyester Fiber
EPS
0.6%
0.1%
PVC
1.7%
PS
1.1%
PP
33.7%
HDPE
30.0%
LLDPE 18.1%
LDPE
7.2%
P
o
l
y
t
h
e
l
e
n
e
5
5
.
3
%
GCC production of low density polyethylene (LDPE)
has been lower than production other polyethylene
grades. In 2012, LDPE production capacity reached
1.7 million tons growing by an average 14% per
annum between 2008 and 2012. LDPE Capacity
expansions continues at a higher rate and in 2012
alone the capacity growth rate was 21% year-on-year
growth. Packing industry is the mail user of low density
polyethylene (LDPE).
With production capacity of 8 million tons per annum,
polypropylene (PP) is the second largest polymer
in the GCC and accounts for 34% of the total. PP
capacity expansion over the past 5 years is one of
the highest among other polymers in the region.
With average annual growth rate of CAGR 23.6%
between 2008 and 2012, polypropylene production has
expanded from 3.4 million tons per annum in 2008 to 8
million tons per annum in 2012.
GCC polymers production capacity
expanded by an average 17% per
annum between 2008 and 2012,
highest among other chemical
product segments.
Top 10 maj or pr oduct s
pr oduced by t he GCC
chemi cal s i ndust r y
GCC chemicals and petrochemicals production is
represented by 78 different chemicals (not including
various product grades). Among them 10 products
represent the majority of the production capacity. In
2012 they accounted for 73% of regions total.
Notably, three basic petrochemicals, namely ethylene,
methanol and propylene accounted for 30% of
the regional chemicals capacity in 2012. Ethylene
production capacity in the GCC is the largest among
other product and accounted for 17% of regions total.
The majority of ethylene is utilized captively to produce
other value-add chemicals. Methanol and propylene
accounted for 7% and 6% respectively. Most of the
propylene production is consumed regionally to
produce polypropylene.
Fertilizer product urea is the second largest product
in the GCC accounting for 12% of the regions total
chemicals capacity in 2012 followed closely by
ammonia which account for 9%. While ammonia
production is one of the largest in the region, the
majority of ammonia is consumed captively to produce
urea.
Share of Top 10 chemical products in total capacity 2012
Others
27%
MTBE
3%
LLDPE
3%
MEG
4%
HDPE
6%
Ethylene
17%
Urea
12%
Ammonia
9%
Methanol
PP
7%
6%
Propylene
6%
129.2
million tons
Polymer products, polyethylene (HDPE and
LLDPE) and polypropylene are also among top 10
products. HDPE and polypropylene each accounted
for 6% of GCCs chemicals capacity in 2012 and
LDPE accounted for 3%. While there is a regional
consumption of polymers in the region, the GCC
polymer industry is by in large export oriented.
Among fne chemicals, MTBE and MEG`s share in
2012 was 3% and 4% in the regions total chemicals
capacity.
73% of regions chemicals capacity
is represented by 10 products.
Over vi ew of gl obal
et hyl ene pr oduct i on
Ethylene is one of the main basic petrochemicals and
is used to produce polyethylene (PE), ethylene oxide
(EO), ethylene glycol (EG), polyvinyl chloride (PVC)
and polystyrene (PS) and various intermediates such
as ethyl acetate.. In 2012 world ethylene capacity
reached 150.9 million tons per annum representing
a growth of 4% per annum since 2008. Asia is the
largest ethylene producer in the world accounting for
36% of worlds total. Ethylene capacity growth in Asia
between 2008 and 2012 was 8.7% per annum and
is one of the highest in the world and higher than the
worlds total growth of 4%.
Global Ethylene Production Capacity by Region (2008-2012)
Source: Mitsubishi Chemical Techo-Research Corporation (MCTR), ICIS, GPCA
GCC
14.4%
Latin America
4.7%
Africa
1.2%
Europe
21.3%
North America
22.0%
China
13.1%
Asia (Excl China)
22.9%
Others
0.3%
GCC
11.6%
Latin America
5.3%
Africa
1.4%
Europe
24.6%
North America
26.5%
China
8.1%
Asia (Excl China)
22.1%
Others
0.4%
2008
129.0
million tons
2012
150.9
million tons
In 2012, GCC ethylene capacity was 21.7 million tons
per annum which accounts for 14.4% of worlds total.
It grew by an average 9.7% per annum in comparison
with worldwide growth of 4%. As a result, GCC share
in the worlds ethylene capacity has increased from
11.6% in 2008 to 14.4% in 2012.
GCC Ethylene production capacity
accounts for 14.4% of worlds total
Global Urea Production Capacity by Region (2009-2012)
Source: International Fertilizer Association (IFA) Production and International Trade, September 2013
GCC
6.0%
North America
6.2%
Latin America
3.4%
Africa
3.7%
Europe
13.7%
Asia
66.7%
Others
0.3%
GCC
7.9%
North America
5.8%
Latin America
3.4%
Africa
3.5%
Europe
14.3%
Asia
64.9%
Others
0.2%
2009
175
million tons
2012
193.7
million tons
Urea is the most widely used solid nitrogen fertilizer
in the world. The agricultural sector is the main user
of urea and accounts for more than 80% of total urea
demand. World urea production capacity in 2012 was
estimated to be 193.7 million tons, up from 175 million
tons in 2009. The majority of these capacity additions
took place in Asia and the GCC. Between 2009 and
2012, Asian countries added 9 million tons of urea
capacity while GCC added 4.8 million tons.
Asia is the largest urea producer in the world. Its
production capacity in 2012 is estimated to be 125.7
million tons which represented 64.9% of worlds total.
Due to urea capacity expansion in other regions,
share of Asia worldwide in urea production market has
declined from 66.7% in 2009.
Producers in Europe (comprised of Western, Central
and Eastern Europe) produced 27.7 million tons
of urea in 2012. This is 14.3% of worlds total urea
capacity. Between 2009 and 2012, Europes producers
added 3.6 million tons of urea capacity which resulted
in compounded annual growth of 4.8% for that period.
In 2012 GCC producers manufactured 15.3 million
tons of urea which accounted for 7.9% of worlds
total. Thus making the GCC the third highest regional
producer of urea. GCCs urea expansion growth rate
of 13.3% per annum between 2009 and 2012 is the
highest in the world.
North American urea producers did not have any
signifcant capacity additions over the past years. In
2012 North American urea production capacity was
estimated at 11.2 million tons, slightly higher than 10.9
million tons in 2009.
Urea production capacity in Africa and Latin America
are similar ( 6.7 million tons and 6.6 million tons in
2012 respectively) . There was a notable expansion
of urea capacity in Latin America between 2009 and
2012. Its growth of 3.7% between 2009 and 2012 was
one of the highest among other regions.
ur ea pr oduct i on
GCC
4.0%
North America
9.0%
Latin America
6.0%
Africa
4.0%
Others
1.0%
Europe
24.0%
Asia
52.0%
GCC
5.0%
North America
8.0%
Latin America
6.0%
Africa
3.0%
Others
1.0%
Europe
23.0%
Asia
54.0%
2009
189.5
million tons
2012
204
million tons
ammoni a pr oduct i on
Global Ammonia Production Capacity by Region (2009-2012)
Source: International Fertilizer Association (IFA) Production and International Trade, September 2013
Today, virtually all nitrogenous fertilizers are
derived from ammonia. Ammonia is produced from
hydrocarbon feedstock and is a key intermediate for
fertilizer production such as urea, ammonium nitrates,
ammonium phosphates and compounds. Ammonia is
the only viable source of nitrogen for producing large
amounts of protein. The nitrogen content of fertilizers
improves both the quantity and quality of protein-
containing crops.
World ammonia production capacity reached 204
million tons in 2012, representing an average growth
of 2.5% per annum since 2009. Asia traditionally
has been the largest ammonia producer in the world
accounting for more than half of worlds ammonia
production capacity. In 2012, Asias capacity to
produce ammonia reached 109.3 million tons per
annum which accounts for 54% of worlds total.
Europe (comprised of Western, Central and Eastern
Europe) is the second largest producer of ammonia
representing 23% of worlds total ammonia production
capacity or 46.1 million tons. Over the past years there
have been no major ammonia capacity additions in
Europe and therefore capacity growth between 2009
and 2012 is modest at 0.6%.
The North American capacity for ammonia production
reached 16.2 million tons in 2012, which accounted for
5% of worlds total. Similarly to Europe, over the past
years there have been no signifcant capacity additions
in North America. In 2009, North American ammonia
capacity was only slightly lower than 16.2 million tons
which resulted in an average growth of 0.2%. This is
lowest growth among other regions.
Production capacity in Latin America in 2012 was
11.5 million tons, an increase from 11 million tons
in 2009. While demand in Latin America has been
rapidly increasing due to the strong development of
the agricultural sector, ammonia capacity expansion
in this region continues at slower pace of than in other
regions. Between 2009 and 2012 it has registered a
growth of 1.5% per annum which is lower than worlds
average growth of 2.5% p.a.
Slightly behind Latin America, GCC ammonia capacity
in 2012 was 11.3 million tons which makes GCC
5th largest among other regions. Rapid capacity
expansion in the GCC from 8.3 million tons in 2009
to 11.3 million tons in 2012 has made ammonia
production in the region the fastest growing among
other parts of the world.
Global Methanol Production Capacity by Region (2008-2012)
Source: Methanol Market Services Asia (MMSA), GPCA, 2013
Methanol is mainly used to make three derivatives:
formaldehyde, methyl tertiary butyl ether (MTBE)
and acetic acid. Other derivatives are dimethyl
terephthalate (DMT), methyl methacrylate (MMA),
methylamines, chloromethanes and glycol ethers.
Worldwide, there are around 90 methanol plants with
combined production capacity of 95.5 million tons,
producing methanol from various feedstock natural
gas, coal, biomass and waste.. Asian producers
account for more than a half of the worldwide
methanol production capacity. In 2012 they accounted
for 55% of 52 million tons per annum. China is the
largest methanol producer in Asia with more than 46
million tons per annum.
met hanol pr oduct i on
GPCA estimates that GCC methanol capacity of 9.3
million tons represented 10% of worldwide methanol
capacity in 2012, down from 14% in 2008.
While production capacity of methanol in the GCC
continued to expand between 2008 and 2012 by an
average 3.9% per annum, worldwide growth was
12.8% per annum during the same period. This
resulted in a reduced share of the GCC in worldwide
methanol capacity over the past fve years.
GCC
14.0%
North America
2.0%
Rest of the World Rest of the World
15.0%
Africa
3.0%
Europe
7.0%
China
32.0%
Asia (Excl China)
5.0%
Central & Latin America
22.0%
GCC
10.0%
North America
2.0%
12.0%
Africa
4.0%
Europe
4.0%
China
48.0%
Asia (Excl China)
6.0%
Central & Latin America
14.0%
2008
59
million tons
2012
95.5
million tons
While GCC methanol production
capacity continued to expand
between 2008 and 2012 by an
average 3.9% p.a, worldwide growth
was 12.8% p.a.
pol ypr opyl ene pr oduct i on
Global Polypropylene Production Capacity by Region (2008-2012)
Polypropylene (PP) is the second widely used polymer
after polypropylene (PE) with application industries
including packaging, domestic appliances, automotive,
housewares, furniture, medical and industrial.
World production capacity of polypropylene in 2012
is estimated to be 61.9 million tons with almost half
(47%) of the capacity located in Asia. China is the
single largest polypropylene producing country in Asia.
Chinas 2012 PP capacity is estimated at 12.7 million
tons which represents 20.6% of the world total. .
Combined capacity of producers in the rest of Asian
countries (excluding China) reached 16.5 million tons
in 2012 which accounts for 26.6% of the world total.
Strong polypropylene demand in China encouraged
producers to increase manufacturing capacity. As a
result PP capacity in China grew by an average 9.5%
per annum between 2008 and 2012. A similar trend
was observed in other Asian countries, where PP
production capacity has increased from 13.9 million
tons in 2008 to 16.5 million tons in 2012.
Polypropylene production in Europe has been
traditionally high. In 2012, PP production capacity in
this region was estimated at 11 million tons per annum
which represents 17.8% of the world total. There were
no signifcant changes in propylene capacity in Europe
and therefore its share has declined from 22.7% in
2008 to 17.8% in 2012.
North Americas polypropylene capacity in 2012
is estimated to be 8.7 million tons which accounts
for 14.1% of worlds total. Polypropylene capacity
additions in North America over the past years have
been minimal. As a result the 2008-2012 annual
compounded growth was 1.5% per annum.
GCC region is slightly behind North America. In 2012
GCC polypropylene capacity was 8 million tons which
accounted for 12.9% of the world total. The share of
GCC polypropylene sector has doubled since 2008
when the region accounted for 6.6% of worlds total
PP production capacity. This was a result of extensive
capacity additions by GCC producers which have
added more than 4.5 million tons of PP capacity since
2008.
Latin America and Africa remain the minor producers
with 3 million tons and 1.1 million tons per annum of
PP production capacity respectively.

2008
51.6
million tons
2012
61.9
million tons
GCC
6.6%
North America
16.0%
Latin America
7.1%
Africa
1.9%
Europe
22.7%
China
17.2%
Asia (Excl China)
27.1%
Others
1.4%
GCC
12.9%
North America
14.1%
Latin America
5.0%
Africa
1.8%
Europe
17.8%
China
20.6%
Asia (Excl China)
26.6%
Others
1.2%
Propylene is one of the basic petrochemicals and
serves as a building block for a number of chemical
products. The majority of worlds propylene is used
to produce polypropylene (PP). Other consumers of
propylene include producers of acrylonitrile, propylene
oxide, oxo alcohols and cumene. In 2012 worldwide
propylene capacity reached 101.6 million tons, up
from 90.1 million tons in 2008. This represents a 6.8%
annual compounded growth rate and is mostly driven
by capacity additions in Asia and the GCC.
Global Propylene Production Capacity by Region (2008-2012)
pr opyl ene pr oduct i on
Asia is the largest propylene producer with 44.7
million ton per annum of installed capacity in 2012.
This accounts for 44% of the worldwide capacity
for propylene. Driven by polypropylene capacity
expansion in Asia, propylene capacity has increased
from 34.4 million tons in 2008 to 44.7 million tons in
2012.
GCC propylene production reached 7 million tons per
annum in 2012 which accounts for 7% of worlds total.
Production capacity growth in the GCC between 2008
and 2012 was 19.7% per annum which is highest
among other regions.
GCC
3.9%
North America
27.4%
Europe
23.5%
China
13.9%
Asia (Excl China)
24.3%
Others
0.4%
Africa
1.5%
Latin America
5.1%
GCC
7.0%
North America
20.7%
Europe
19.1%
China
17.3%
Asia (Excl China)
26.8%
Others
4.0%
Africa
1.6%
Latin America
3.5%
2008
90.1
million tons
2012
101.6
million tons
GCC propylene production reached
7 MTPA in 2012 which accounts for
7% of worlds total.
High density polyethylene (HDPE) is the largest of the
three polyethylenes (PE) by volume of consumption.
HDPEs properties give it higher strength compared
with other polyethylene allowing a wide range of
uses. Major application of HDPE is blow-moulding
for products such as bottles for milk and other non-
carbonated drinks, drums, fuel tanks for automobiles,
toys and household goods. Because HDPE has
good chemical resistance, it is used for packaging
many household and industrial chemicals such as
detergents, bleach and acids.
In 2012, worldwide HDPE production capacity reached
41.7 million tons, up from 34.4 million tons in 2008.
This capacity increment has been largely driven by
Asian producers The HDPE production capacity in
Asia reached 14.5 million tons in 2012 which accounts
for 34% of the total globally. Over the past few years,
HDPE capacity in Asia has been growing by an
average 40.1% per annum the highest among all
other regions. China is the largest HDPE producer
among Asian countries and accounted for 12% of
worlds total or 5.2 million tons.
Global HDPE Production Capacity by Region (2008-2012)
Source: ICIS, GPCA, 2013
HDPE pr oduct i on
North America is the second largest producer of HDPE
globally. With production capacity of around 6.2 million
tons, North American producers account for 15% of
worlds total, down from 26% in 2008. Similarly, the
share of European producers has declined from 21%
in 2008 to 12% in 2012.
The combined capacity of HDPE producers in the
GCC in 2012 is about 7.1 million tons. This accounts
for 17% of worlds total. Since 2008, GCC HDPE
production capacity has grown by an average 26% per
annum which is second highest growth rate after Asia.
Latin America
4.0%
Africa
2.0%
Rest of the World
21.0%
GCC
10.0%
Europe
21.0%
North America
26.0%
China
4.0%
Asia (Excl China)
12.0%
Latin America
3.0%
Africa
1.0%
Rest of the World
18.0%
GCC
17.0%
Europe
12.0%
North America
15.0%
China
12.0%
Asia (Excl China)
22.0%
2008
34.4
million tons
2012
41.7
million tons
Since 2008, GCC HDPE production
capacity grew by an average 26%
p.a which is second highest after
Asia.
Monoethylene glycol (MEG) is an important raw
material for industrial applications. A primary use of
MEG is in the manufacture of polyester (PET) resins,
flms and fbers. End uses for MEG range from textiles,
packaging, and kitchenware to engine coolants.
Supported by the demand from polyester (PET) resins
producers, global MEG production capacity has been
growing by an average 6.5% per annum between 2008
and 2012. This expansion of MEG has been driven by
the additions in Asia and GCC. Asia continues to be
Global MEG Production Capacity by Region (2008-2012)
the largest producer of MEG accounting for 40% of the
products global capacity. Since 2008, there has been
a 5.4% per annum growth of MEG production capacity
in Asia. This is the highest among other regions.. GCC
is the second largest MEG producing region globally
and in 2012 represented 19% of the global production
capacity for MEG. This is a decrease from the 2008
level of 22%.
Monoet hyl ene Gl ycol
( MEG) pr oduct i on
Latin America
4.0%
GCC
22.0%
Europe
12.0%
North America
21.0%
China
11.0%
Asia (Excl China)
30.0%
Latin America
2.0%
Rest of the World
17.0%
GCC
19.0%
Europe
5.0%
North America
17.0%
China
13.0%
Asia (Excl China)
27.0%
2008
21.1
million tons
2012
27.2
million tons
GCC is the second largest MEG
producing region and represented
19% of worlds production capacity.
Linear Low-Density Polyethylene (LLDPE) is part of
the polyolefns family and widely used polyethylene
along LDPE and HDPE. Globally, the majority of
LLDPE resins is utilized by flm applications such as
food and non-food packaging to produce heavy duty
industrial bags, flm applications, carrier bags. Other
applications include liquid paper board coatings, wire
and cable, injection moulding parts, pipes etc.
Global production capacity of LLDPE reached 30.4
million tons, up from 22.8 million tons in 2008.
World consumption of packaging materials created
opportunities for LLDPE producers worldwide. Almost
all LLDPE capacity expansion since 2008 has taken
place in Asia. This has resulted in Asia having the
highest capacity growth among other regions: 38.1%
per annum between 2008 and 2012. This capacity
expansion has increased Asias share of global
capacity from 19% of worlds total in 2008 to 38% in
2012 making Asia the leading LLDPE producing region
in the world.
In mature markets such as Europe and North America
there have been limited capacity additions and
closures of less competitive units. As a result, North
American LLDPE producers accounted for 22% of
Global LLDPE Production Capacity by Region (2008-2012)
LLDPE pr oduct i on
worlds total production capacity, down from 30% in
2008. Similarly, the global share of European LLDPE
producers has decreased from 16% in 2008 to 12% in
2012.
GCC LLDPE producers continue to be the third region
worldwide after Asia and North America. In 2012,
LLDPE production capacity in the GCC has reached
4.3 million tons which accounts for 14% of world total.
GCC LLDPE capacity growth between 2008 and 2012
of 10.9% per annum was one of the highest after Asia.
GCC
14.0%
Europe
16.0%
Latin America
6.0%
Africa
2.0%
Rest of World
13.0%
China
9.0%
North America
30.0%
Asia (Excl China)
10.0%
GCC
14.0%
Europe
12.0%
Latin America
5.0%
Africa
1.0%
Rest of World
7.0%
China
15.0%
North America
22.0%
Asia (Excl China)
24.0%
2008
22.8
million tons
2012
30.4
million tons
LLDPE production capacity in the
GCC has reached 4.3 million tons
which accounts for 14% of worlds
total.
MTBE (methyl tertiary-butyl ether) is a chemical
compound produced in very large quantities and is
used as a fuel additive in motor gasoline. It is one of a
group of chemicals commonly known as oxygenates
because they raise the oxygen content of gasoline.
Global production capacity of MTBE in 2012 is
estimated to be 18.9 million tons, slightly up from
18.6 million tons in 2008. Asia is the largest producer
of MTBE in the world accounting for 40% of global
production capacity. Asias production capacity growth
of 8.9% per annum between 2008 and 2012 was the
highest among other regions.
Global MTBE Production Capacity by Region (2008-2012)
Source: Mitsubishi Chemical Techo-Research Corporation (MCTR), GPCA
MTBE pr oduct i on
GCC
22.0%
Europe
19.0%
North America
21.0%
Latin America
7.0%
Rest of the World
2.0%
China
18.0%
Asia (Excl China)
11.0%
GCC
23.0%
Europe
17.0%
North America
13.0%
Latin America
5.0%
Rest of the World
2.0%
China
28.0%
Asia (Excl China)
12.0%
2008
18.6
million tons
2012
18.9
million tons
GCC is the second MTBE producing region in the
world. In 2012 its production capacity accounted for
23% of the world total. Combined capacity of GCC
MTBE producers in 2012 reached 4.2 million tons
which is similar to 2008 level.
Global production capacity of MTBE
in 2012 is estimated to be 18.9
MTPA.
GCC Product i on
Capaci t y by
Count ry ( 2008- 2012)
5.
GCC Pr oduct i on
Capaci t y by Count r y
5. GCC Production Capacity by Country (2008-2012)
The GCC chemicals industry is
one of the largest manufacturing
industries in the GCC and it
continues to expand and diversify.
In 2012, GCC chemicals capacity
increased by 6.1% driven mostly
by capacity additions in Saudi
Arabia and Qatar. GCC capacity
expansion in 2012 is slightly
lower than in 2011 when region
registered 10% year-on-year
growth. Between 2008 and 2012
GCC chemicals capacity grew by
an average 12.2% per annum.
During the same period, UAE
and Qatar were expanding their
chemicals capacity faster than
other GCC states by 19.6% and
18.4% per annum respectively.
Saudi Arabia is the largest producer
in the region and represented
65.2% of the GCC chemicals
capacity in 2012. From 2008-2012,
there has been many capacity
additions in other GCC countries.
Qatar continues to be the second
largest chemicals producer in the
region accounting for 15.3% of
the total GCC capacity in 2012.
Over the past 5 years capacity
expansion in Qatar has increased
its share in the region from 12.3%
in 2008 to 15.3% in 2012. While
Oman, a relatively small player in
the region accounting for 7.1%,
almost doubled its production
capacity from 4.9 million tons per
annum in 2008 to 9.3 million tons
in 2012.
GCC Chemicals Production Capacity by Country
CAGR of GCC Production Capacities (2008-2012)
57.7
69.4
74.3
80.1
84.2
10.1
10.1
11.4
16.6
19.8
4.9
7.3
9.0
9.0
9.2
4.2
7.6
7.6
7.7
3.4
0.7 5.2
3.4
1.3
7.1
7.1
6.9
1.4
1.4
1.4
81.6
96.7
110.7
121.8
129.2
0
20
40
60
80
100
120
140
2008 2009 2010 2011 2012
M
i
l
l
i
o
n

T
o
n
s
CAGR (2008-2012)
12.2%
19.6
18.4
16.9
15.9
12.2
9.9
1.6
UAE Qatar Oman Kuwait GCC Saudi Arabia Bahrain
CAGR (2008-2012)
12.2%
Basi c Pet r ochemi cal s
capaci t y br eakdown
by count r y
Basic petrochemicals represent the largest share
of the GCC petrochemicals industry. With industry
expansion, regional capacity to produce basic
petrochemicals has been expanding and the annual
compounded growth rate between 2008 and 2012 is
13.2%.
Saudi Arabia is the largest regional producer of
basic petrochemicals. In 2012 its production capacity
reached 29.8 million tons which represents 68% of
the regions total. This is driven by the availability of
primary feedstock such as natural gas and crude oil.
Despite the Saudi dominance on a regional level,
other countries of GCC have been expanding their
capabilities which, from 2008-2012 has resulted
in Qatar, Oman and Kuwait almost doubling their
production capacity. Qatar is presently the second
largest producer in the region with 42.2 million tons.
The establishment of new producers in Qatar and
capacity expansions by the existing producers has led
to an average increase in capacity growth of 17.5%
per annum from 2008-2012.
Commodity petrochemicals capacity in Oman has
been 3.5 million tons per annum for several years.
Methanol and aromatics are the main commodity
chemicals produced in Oman and have been key
drivers behind capacity expansion in the country over
the past years. Between 2008 and 2012, Omans
petrochemicals capacity grew from 1.4 million tons
per annum to 3.5 million tons at present, a growth of
25.6% per annum.
Likewise, Kuwaits basic chemicals production capacity
remained unchanged between 2010 and 2012 and is
currently close to 3.4 million tons per annum. Capacity
expansion in Kuwait between 2008 and 2010 were
driven mostly by ethylene and aromatics (benzene and
xylenes).
The UAE follows the same trend as in Oman and
Kuwait. There have not been any capacity additions
between 2010 and 2012, and so UAE chemicals
production capacity remains at 2.9 million tons per
annum.
Basic petrochemicals capacity in Bahrain is 0.4 million
tons per annum and is largely related to the production
of Methanol. Over the past years there have not been
any capacity additions in Bahrain and therefore it
remains the marginal producer in the region.
GCC Basic Petrochemicals Capacity by Country
21.0
25.6
27.5 27.8
29.8
2.2
2.2
3.5
4.3
4.2
1.4
2.4
3.5
3.5
3.5
1.3
1.4
3.4
3.4
3.4 2.9
2.9
2.9
0.6
0.4
0.6
0.4
0.4
0.4
0.4
26.9
32.6
41.1
42.2
44.1
0
5
10
15
20
25
30
35
40
45
50
2008 2009 2010 2011 2012
M
i
l
l
i
o
n

T
o
n
s
CAGR (2008-2012)
13.2%
GCC Fertilizers Production Capacity by Country
Fer t i l i zer s capaci t y
br eakdown by count r y
Fertilizers and crop protection chemicals together
form agricultural chemicals group. Fertilizer production
in the GCC is the second largest product group
expanding by an average 13.7% per annum between
2008 and 2012. In 2012 alone, GCC fertilizer industrys
year-on-year growth was 10.5% driven by the capacity
additions in Qatar.
Saudi Arabia is the largest producer of fertilizers in
the GCC. In 2012, the fertilizer production capacity
of Saudi producers reached 10.9 million tons which
accounts for 36% of regions total fertilizer industry.
With the capacity expansions taking place between
2008 and 2012, Saudi Arabias share in regions total
remained at the similar level of 36-38%. Major fertilizer
projects which have come on stream in Saudi Arabia
in the past few years include Maaden Phosphate
Company`s Fertilizer Complex which added signifcant
production capacity of diammonium phosphate (DAP)
and ammonia.
Qatar is the second largest fertilizer producer in
the region. With annual production capacity of 10.7
million tons in 2012, Qatar accounted for 35% of GCC
capacity. Qatar fertilizer production is concentrated
around nitrogen fertilizers. Qatar is the largest urea,
4.4
6.8 6.8 6.8
10.8 10.8
4.4 4.4
7.7
10.7
2.8
4.2
4.8
4.8
4.8
1.7
1.7
1.7
1.7
1.7
1.3
1.3
1.3
1.3
1.1
1.0
1.0
1.0
1.0
1.0
18.0
19.4
20.0
27.3
30.2
0
5
10
15
20
25
30
35
2008 2009 2010 2011 2012
M
i
l
l
i
o
n

T
o
n
s
CAGR (2008-2012)
13.7%
and second largest ammonia producer in the region.
With two major expansions commencing production
in Qatar over the past years, Qatars current fertilizer
plant in the largest single urea and ammonia facility in
the world.
Similarly, Omans fertilizer industry focuses on the
production of nitrogen fertilizers: ammonia and urea.
In 2012, Omans fertilizer production capacity reached
4.8 million tons which represents 16% of the regions
total. Between 2008 and 2012, Omans fertilizer
industry grew by an average 14% per annum, which is
in line with the growth of GCC fertilizer industry.
Fertilizer production capacity in Kuwait, UAE and
Bahrain remained unchanged over the past years:
1.7 million tons per annum in Kuwait, 1.14 million tons
per annum in the UAE and 1 million tons per annum
in Bahrain. As a result the share of these countries
in the regions fertilizer industry over the past years
has declined. Kuwait fertilizer industrys share in
the regional total declined from 9% in 2008 to 6% in
2012. Similarly share of the UAE fertilizer industry has
declined from 7% to 4%, and the share of the Bahrain
fertilizer industry in the regional total has declined from
5% to 3%.
Pol ymer s capaci t y
GCC Polymers Production Capacity by Country
Polymers are compounds derived from one or
more petrochemical monomers such as ethylene,
styrene and propylene. Polymers include commodity
thermoplastics, engineering resins and thermoplastic
elastomers. Between 2008 and 2012, the GCC
polymers industry has achieved a remarkable capacity
growth averaging 17% per annum, the highest among
other chemical product segments.
Saudi Arabia is the largest regional polymers producer
accounting for 73% of the GCC production capacity in
2012. Last year alone, polymers capacity addition in
the country was 1.9 million tons representing a 12.5%
year-on-year growth. Polymers production in Saudi
Arabia is the most diversifed in the region with largest
portfolio of polymers types and grades produced in the
region.
While UAEs overall petrochemicals capacity is one
of the smallest in the region, within the polymers
production UAE is the second largest regional
producer. In 2012, the UAE represented 10% of the
total polymers production capacity in the region.
Over the past 5 years, polymers production growth in
the UAE has registered 25.6%, the highest average
annual growth rate in the region..
9.0
13.9
15.2 15.5
17.4
1.0
1.0
2.4
2.4
2.4
1.3
1.3
1.3
1.7
2.0
0.7
0.8
1.0
1.0
1.0
0.7
0.7
0.7 0.7
1.0
12.7
17.6
20.6
21.3
23.8
0
5
10
15
20
25
2008 2009 2010 2011 2012
M
i
l
l
i
o
n

T
o
n
s
CAGR (2008-2012)
17%
Saudi Arabia UAE Qatar
Kuwait Oman
Qatars polymer production is focused on polyethylene
production and accounted for 8% of regions total
polymers capacity in 2012. While capacity expansion
in Qatar has continued over the past 5 years at an
average rate of 10.6%, it was slower than in other
GCC countries.
Kuwait and Oman each represented 4% of the regional
polymer production in 2012. Likewise Qatar, polymers
capacity expansion in Kuwait and Oman was lower
than the regions overall growth.
Saudi Arabia is the largest regional
polymers producer accounting
for 73% of the GCC production
capacity in 2012.
Fine chemicals are positioned between commodity
chemicals and specialties, they are high value-added
products. Fine chemicals play much more important
role than bulk chemicals production and serve the
pharmaceuticals, agrochemicals, plastics and other
industries. From commodity petrochemicals to fne
chemicals; the average value per ton is increasing.
There is a huge variety of fne chemicals and each
individual chemicals company tends to produce only a
small quantity.
GCC production capacity of fne chemicals was
estimated at 14.8 million tons per annum in 2012.
Saudi Arabia is the largest producer of fne chemicals
in the region and accounted for 81.4% of the GCC
production capacity in 2012. Production of fne
chemicals in the rest of the GCC is still comparably
small with Kuwait accounting for 7.8%, Qatar for 7.4%
and the UAE for 3.8% of the regions total in 2012.
Fi ne chemi cal s capaci t y
GCC FIne Chemicals Production Capacity by Country
9.7
10.8
12.0 12.0 12.0
0.6
1.0
1.2 1.2 1.2
0.7
0.7
0.7 1.1 1.1
0.5
0.5
0.6
0.6 0.6
11.5
13.0
14.4
14.8 14.8
0
2
4
6
8
10
12
14
16
2008 2009 2010 2011 2012
M
i
l
l
i
o
n

T
o
n
s

CAGR (2008-2012)
6.5%
Saudi Arabia Kuwait Qatar UAE
Fine chemicals play an important
role and serve the pharmaceuticals,
agrochemicals, plastics and other
industries. GCC production capacity
of ne chemicals was estimated at
14.8 mtpa in 2012.
GCC Capaci t y
Ut i l i zat i on
( 2011- 2012)
6.
Capaci t y ut i l i zat i on
by count r y
GCC Chemicals Industry Capacity Utilization by Country, %
Note: Due to data revisions, 2011 capacity utilization has been revised from 91% to 92%.
93%
92%
85%
92%
94%
93%
113%
Qatar
GCC
UAE
Saudi Arabia
Oman
Kuwait
Bahrain
Qatar
GCC
UAE
Saudi Arabia
Oman
Kuwait
Bahrain
Qatar
GCC
UAE
Saudi Arabia
Oman
Kuwait
Bahrain
2011
83%
91%
91%
92%
94%
97%
100%
2012
99%
94%
89%
93%
94%
96%
111%
2008-2012
Average capacity utilization
Capacity utilization measures the extent to which the
capital stock of an industry is being employed in the
production of goods. It rises and falls with the business
cycle. Over the past fve years, GCC chemicals
industrys capacity utilization averaged 94%. This is
higher than global average capacity utilization for the
same period, which was 86%.
In 2012 GCC chemicals industry has operated at 91%
of its capacity which is a marginal drop from 92%
in the previous year. At a country level, chemicals
plants operating rates remained unchanged only in
Saudi Arabia and Oman. Depending on individual
characteristics, operating rates in other GCC states
have either improved or declined.
A decline in operating rates has been recorded in
Qatar which is the second largest producer in the
GCC. In 2012 its capacity utilization declined by 10
percent points on year-on-year basis. This was due
to the start-up of new facilities and time required to
achieve target production. The temporary nature of
the low capacity utilization in Qatar is supported by
the country`s fve year average operating rate which is
99%.
Similarly, capacity utilization in Bahrain has declined
from 113% in 2011 to 100% in 2012. While Bahrain
accounts for the minor share of regions total
6. GCC Capacity Utilization (2011-2012)
production capacity, it has been utilizing a number of
measures to improve its operating rates and achieve
greater output. Therefore its operating performance in
the recent years is highest when compared to other
GCC states.
Conversely, the UAE industrys capacity utilization rate
has increased to 91%, an increase of 6% from 2011
and follows years of steady improvement since major
capacity additions brought forward in 2010.
Likewise, capacity utilization in Kuwait saw an
improvement of 4 percentage points in 2012 in
comparison with the previous year. With operating
rates of 97%, producers in Kuwait have utilized nearly
all their nameplate capacities demonstrating one of the
best operating performances in the region.
The largest chemicals producers in the region
Saudi Arabia did not record any changes in capacity
utilization in 2012 and remained at 92%. Lower
fertilizer and polymer plants operating rates have been
affecting the countrys overall performance in recent
years. However, the operating rates in Saudi Arabia in
2011 and 2012 are consistent with the historic average
of 93%.
Capaci t y ut i l i zat i on
by pr oduct segment
GCC Chemicals Industry Capacity Utilization by Product Segment, %
97%
89%
91%
94%
94%
94%
97%
2008-2012
Average capacity utilization
84%
89%
90%
92%
96%
97%
98%
Fertilizers
Polymers
Inorganic chemicals
All Products
Basic
Intermediates
Downstream Chemicals
Fertilizers
Polymers
Inorganic chemicals
All Products
Basic
Intermediates
Fertilizers
Polymers
Inorganic chemicals
All Products
Basic
Intermediates
2011
84%
88%
90%
91%
94%
97%
99%
2012
Capacity utilization of individual product segments is
affected by the business cycles and supply / demand
changes. The GCC chemicals industry has been
export oriented and therefore it is exposed to a number
of external factors which affect operating rates.
The production of basic chemicals and intermediates is
least exposed to external factors because the majority
of production is consumed captivity within the region.
Basic chemicals and intermediates are also one of the
largest product segments in the region representing
almost half of the GCC chemicals production capacity.
Producers of basic chemicals in the GCC utilized 94%
of nameplate capacity in 2012. While this is a slight
decline from 96% in 2011, it is similar to the 5 years
average operating rate. Capacity utilization within the
intermediate products segment is one of the highest.
In 2011 and 2012 it remained at 97% and is mostly
driven by increased production of fne chemicals.
The majority of fne chemicals produced in the region
are exported overseas. Operating rates of plants
producing fne (downstream) chemicals remain high
at 98-99% for the second year. This suggests that the
overseas demand for these products remains stable
and GCC producers are able to capitalize on high
value-added products.
The polymers segment is another export oriented
segment in the GCC chemicals industry. In 2012, when
compared to 2011, polymers operating rates have
slightly declined to 88% from 89%.
Over the past ve years, GCC
chemicals industrys capacity
utilization averaged 94%.
Gl obal compar i son of t he
GCC capaci t y ut i l i zat i on
Capacity utilization measures the extent to which
the capital stock of an industry (or nation) is being
employed in the production of goods. It rises and falls
with the business cycle. Over the past fve years, the
overall GCC chemicals industrys capacity utilization
averaged 94%. This is higher than the global average
capacity utilization of 86% during the same period.
GCC and Worldwide Petrochemicals Capacity Utilization, %
Source: American Chemistry Council, Gulf Petrochemicals and Chemicals Association (GPCA), 2013
87%
87%
87%
92%
92%
91%
2010
2011
2012
GCC Capacity Utilization Worlwide Capacity Utilization
Capacity utilization in chemicals
industry globally remained 87% in
2012, while in the GCC it was 91%.
GCC Chemi cal s
I ndust ry Growt h
Pat t ern ( 2012)
7.
7. GCC Chemicals Industry Growth Pattern (2012)
Tr ends i n GCC chemi cal s
pr oduct i on, t r ade and
consumpt i on gr owt h
During the period from 2009 and 2012, GCC
chemicals production and consumption registered
higher growth rates when compared to the period
from 2005 to 2008. In the production side, an increase
in the growth rate from 8.2% in the time span 2005-
2008 to 9.2% in the timeframe 2009-2012. Likewise,
GCC chemicals consumption growth rate between
GCC Production, Trade and Consumption Growth
Note: Export excludes intra-regional trade; Consumption includes captive consumption and intra-regional trade
8.2
5.8
11.4
9.2
8.3
10.4
Production Consumption International Trade
Growth (2005-2008) Growth (2009-2012)
2009 and 2012 is 2.5% higher than the chemicals
consumption growth rate between 2005 and 2008. In
contrast GCC chemicals exports growth rate during
the period of 2009 and 2012 has declined by 1% from
11.4% to 10.4%, indicating an increase in the regional
consumption by the downstream industries.
GCC Chemi cal s gr owt h
per f or mance agai nst
t ot al manuf act ur i ng
Following the decline in production output during
2009 economic downturn, both GCC chemicals and
manufacturing sectors are on recovery trend since
2010. During 2010 and 2011, chemicals sectors
output measured in value terms outperformed that of
the manufacturing sector as a whole. In 2010, output
of GCC chemicals industry grew by 33% while the
total output of GCC manufacturing sector grew by
22%. Likewise, the chemicals sectors output was
more than double that of the manufacturing sector in
2011 growing by 47% in comparison to 21% growth
Chemicals growth performance against total manufacturing (2008-2012)
Note: Growth performance is calculated based on the value of output, Manufacturing data for 2011 and 2012 is preliminary
Source: UNIDO and GPCA Estimations, 2013
19%
-8%
33%
47%
4%
19%
-12%
22%
21%
10%
2008
2009
2010 2011 2012
Chemicals Manufacturing
rate achieved by the manufacturing sector. In 2012,
however, the growth trend of the chemicals sectors in
the region was lower than the growth trend for the total
manufacturing sector: chemicals sector grew by 4%
and manufacturing total by 10%. Lower growth rate of
chemicals sector in 2012 is a result of lower year-on-
year rate of chemicals production expansion in 2012.
During 2010 and 2011, GCC chemicals industrys
production capacity has expanded by 14.5% and 10%
year-on-year respectively, higher than 6.1% growth in
2012.
GCC chemi cal s
pr oduct i on gr owt h by
pr oduct segment i n
gl obal per spect i ves
The worldwide average growth rate for chemicals
production (excluding pharmaceuticals) between 2008
and 2012 stood at 3%. GCC production growth in
the same period is 10.4% which is just over triple the
fgure for worldwide growth and is driven by the new
capacity additions in the region.
Looking at individual business segments, GCC
production growth has outpaced the global growth
within the same time span. In the plastic resins
segment, GCC production grew at CAGR of 14.3%
while its global counterpart grew by 3.1%. Similarly
the GCC petrochemicals segments production
grew by 11.1% in comparison to 2.2% for the global
World and GCC Production Growth by Product Segment, CAGR (2008-2012)
Source: Gulf Petrochemicals and Chemicals Association (GPCA) and American Chemistry Council, 2013
3.0
4.9
2.3 2.2
3.1
10.4
6.6
5.4
11.1
14.3
Chemicals
(Excl Pharmaceuticals)
Agricultural Chemicals Inorganic Chemicals Organic Chemicals Plastic Resins
World GCC
petrochemical industry segment. Likewise, inorganic
chemicals production growth in the GCC between
2008 and 2012 was higher than of that worldwide.
During this period, this product segment grew by an
average 5.4% in the GCC while globally it grew by an
average 2.3%. Agro chemicals production in the GCC
is mostly concentrated around fertilizers production.
Between 2008 and 2012, fertilizers production in the
GCC grew slightly higher than worldwide production
of agricultural chemicals: GCC grew at CAGR of 6.6%
and worldwide production at CAGR of 4.9%.
GCC chemicals production growth
between 2008 and 2012 was 10.4%
p.a, while globally 3%.
Gl obal and GCC
pr oduct i on i ndex
Global Production Index by Product Segment (Index 2007=100)
GCC Production Index by Product Segment (Index 2007=100)
Source: American Chemistry Council, 2013
2007 2008 2009 2010 2011 2012
Chemicals (excluding
Pharmaceuticals)
100.0 107.6 122.5 143.0 152.6 159.7
Inorganic chemicals 100.0 102.5 106.2 109.6 126.1 126.6
Plastic Resins 100.0 105.2 129.6 154.5 163.1 179.5
Fertilizers 100.0 100.2 103.1 107.3 117.0 129.2
Organic Chemicals 100.0 112.3 131.1 159.5 168.7 171.1
2007 2008 2009 2010 2011 2012
Chemicals (excluding
Pharmaceuticals)
100.0 100.5 93.6 105.2 109.6 112.9
Agricultural Chemicals 100.0 101.8 101 111.1 115.7 123.5
Consumer Chemicals 100.0 99.5 95.2 100.5 106.3 109.8
Inorganic Chemicals 100.0 100.8 90.9 102.2 107 110.3
Organic Chemicals 100.0 100.7 91.3 105.2 109.2 109.9
Plastic Resins 100.0 99.6 92.6 106.6 109.3 112.6
Synthetic Rubber 100.0 100.9 90.1 108 119.4 127.1
Man-Made Fibers 100.0 102.8 101.8 115.7 125 134.4
Specialty Chemicals 100.0 100.5 94.8 103.9 107.9 111.8
GCC chemi cal s
pr oduct i on gr owt h i n
a gl obal per spect i ve
Total global output of chemicals includes production
growth of inorganic and organic chemicals, plastic
resins, synthetic rubber and fbers, specialty chemicals
and consumer chemicals as well as pharmaceuticals.
Current GCC chemicals production data does not
include pharmaceuticals and therefore is comparable
with global output excluding pharmaceuticals. Current
global data includes data from 65 nations which
account for 97% of the global business of chemistry.
Global Chemicals Production Growth by Region CAGR (2008-2012)
10.4%
8.6%
3.7%
3.0% 3.0%
0.9%
0.0%
-1.1% -1.9%
GCC Asia Africa and
Middle East
Global
Output of
Chemicals
Global
Output of
Chemicals
(exl Pharma)
Latin America Western
Europe
Central and
Eastern
Europe
North
America
The average growth rate of global chemicals output
between 2008 and 2012 is estimated at 3%. From
2008 to 2012 chemicals production growth in the GCC
grew at an average rate of 10.4% which is highest
among other regions. Asia follows the GCC closely
with an average production growth of 8.6%.
Global Chemicals Production Index by region (2007=100)
2007 2008 2009 2010 2011 2012
Global Output Chemicals
(Excluding Pharmaceuticals)
100 100.5 93.6 105.2 109.6 112.9
North America 100 94.5 84.5 87.3 87.4 87.4
Latin America 100 102.5 97.1 103.9 104.7 106.3
Western Europe 100 99.8 92.5 99.4 101.1 99.9
Central and Eastern Europe 100 100.1 83.8 95.2 99.3 95.9
Asia 100 106.3 108.6 125.4 137.3 147.7
GCC 100 107.6 122.5 143 152.6 159.7
8.
8. Global Chemical Industry Profle (2012)
chemi cal s out put
Global Chemicals (Excluding Pharmaceutical) Shipments ($USbillion)
Note: Shipments is equivalent to value of output
Source: American Chemistry Council and GPCA, 2013
2'033.7
2'252.4
2'623.3
3'003.1
2'634.3
3'196.7
3'902.5 3'881.9
2005 2006 2007 2008 2009 2010 2011 2012
GCC 2.5%
Other regions 97.5%
CAGR (2005-2012)
9.7%
Currently almost every nation is engaged in either
in production, trade or consumption of chemicals.
The term shipments is equivalent to the term value
of output. As reported by American Chemistry
Council, global shipments of chemicals excluding
pharmaceuticals reached $US 3,881.9 billion growing
by an average 9.7% since 2005. The value of
chemicals output in the GCC is estimated at $US97.3
billion which represents 2.5% of the worlds total.
Between 2005 and 2012, chemicals industry output in
the GCC grew at an average 19% per annum which is
higher than global growth.
The following table presents global chemicals
shipments (including pharmaceuticals) or value of
output by region. In 2012, global output of chemicals
(including pharmaceuticals) reached $US 4,973.2
billion. Asian countries produced about half or 49.2%
of all the chemicals in 2012. Among Asian countries,
China is the largest producer representing 28.8%
of global chemicals output. Other regions with
signifcant share in the value of chemicals output are
Western Europe and North America which account
for 20.5% and 17.6% respectively. In 2012, GCC
represented 2 % of global chemicals output (including
pharmaceuticals). Looking at the pace of growth of
the chemicals output between 2005 and 2012, GCC
regions saw the highest average growth rate of 19%
per annum. Asia is the second fastest growing region
with CAGR (2005-2012) of 16.5%. GCC and Asia were
the only regions which saw a double digit growth over
the past years. Other regions with noticeable growth of
chemicals output including pharmaceuticals are Latin
America and Eastern & Central Europe which grew by
an average 9% per annum during the same period.
Value of chemicals output in
the GCC in 2012 is estimated at
$US97.3 billion which represents
2.5% of the total global.
chemi cal s out put
Global Chemical Shipments by Country/Region ($US billion)
2005 2006 2007 2008 2009 2010 2011 2012
China 289.4 364.1 494.2 667 746.5 978.7 1,303.3 1,431.9
Asia-Pacic (excI China) 553.4 599.4 671.6 755.80 691.3 854.3 1,009.9 1,015.8
Western Europe 767.1 829.4 954.3 1,045.5 874.6 947.5 1,081.5 1,017.9
North America 699.3 753.2 815.8 846.20 707.2 792.5 891.70 876.20
Latin America 160.8 178.3 207.3 229.00 214.4 248.5 295.30 293.90
Central & Eastern Europe 83.6 97.3 115.1 143.0 102.0 130.4 155.3 153.7
GCC 28.9 33.4 43.4 52.2 48.2 64.4 94.1 97.3
Africa and Middle East (Excl
GCC)
66.5 67.5 71.8 90.4 78.4 91.1 89.8 86.5
Total Global Shipments 2,648.9 2,922.6 3,373.5 3,829.1 3,462.6 4,107.5 4,920.9 4,973.2
Note: Shipments is equivalent to value of output
Global chemicals output (including
pharmaceuticals) reached $US 4.9
trillion in 2012.
Gl obal chemi cal s
expor t by r egi on
and count r y
Global Chemicals (Excluding Pharmaceutical) Exports by Region
Source: World Trade Organization, 2013, Note: Includes intra-regional trade
Export value in 2012,
US$ billion
2012 Share
USA 162.4 11%
Germany 147.3 10%
China 119.5 8%
Belgium 84.4 6%
Netherlands 78.8 5%
Japan 74.9 5%
France 70.9 5%
South Korea 59.8 4%
United Kingdom 46.6 3%
Singapore 44.9 3%
Top 10 889.4 61%
World 1,458.3
Source: World Trade Organization, 2013
World Top 10 Exporters of Chemicals (Excluding Pharmaceuticals) in 2012, US$ billion

Latin America
2.9%
Middle East (Excl GCC)
0.8%
Africa
1.1%
Latin America
3.4%
1.5%
Africa
1.4%
Asia
20.8%
GCC
1.5%
North America
15.6%
Central & Eastern Europe
3.5%
Asia
28.9%
GCC
3.6%
North America
13.3%
5.8%
Western Europe
53.8%
Western Europe
42.1%
2002
$US 505
billion
2012
$US 1,458
billion
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
North
America
78.9 87.2 104.7 116.6 131.1 149.4 172.5 136.8 171.8 198.0 194.0
Latin
America
14.5 16.0 20.3 24.8 29.5 33.8 41.2 31.7 39.0 47.8 49.6
Western
Europe
271.8 325.8 389.4 426.3 473.9 560.6 607.3 497.9 555.9 647.2 614.3
Central and
Eastern
Europe
17.8 22.7 29.9 36.8 44.1 56.2 76.6 51.9 64.0 80.8 84.4
GCC 7.5 8.0 12.0 15.0 17.7 22.5 25.3 22.3 33.3 47.2 52.7
Middle East
(Excl GCC)
4.2 4.9 6.8 8.2 9.4 12.3 19.0 14.4 19.1 23.4 22.1
Africa 5.4 6.4 7.9 9.4 10.1 11.5 21.2 13.9 17.9 21.0 20.4
Asia 105.4 131.2 169.1 200.1 228.9 272.3 307.4 257.2 346.6 427.2 420.7
World Total 505.5 602.3 740.3 837.2 944.7 1,118.5 1,270.6 1,026.1 1,247.5 1,492.6 1,458.3
World Chemicals (Excluding Pharmaceuticals) Exports by Region, US$ billion
Gl obal chemi cal s
i mpor t by r egi on
and count r y
World Chemicals (Excl Pharmaceuticals) Imports by Region
World Top 10 Importers of Chemicals (Excluding Pharmaceuticals) in 2012, US$ billion
2012 Import Value, US$ billion 2012 Share
China 186.1 12.3%
USA 131.0 8.7%
Germany 105.8 7.0%
France 65.2 4.3%
Belgium 63.9 4.2%
United Kingdom 51.2 3.4%
Netherlands 50.5 3.4%
Japan 49.2 3.3%
Italy 48.0 3.2%
South Korea 42.4 2.8%
Top 10 793.5 52.6%
World 1,508.3
1.2%
Asia
24.7%
GCC
1.1%
Africa Africa
2.2%
North America
16.1%
Latin America
7.5%
4.7%
Western Europe
42.4%
1.0%
Asia
32.0%
GCC
1.4%
3.0%
North America
11.0%
Latin America
9.0%
7.0%
Western Europe
36.0%
2002
$US 529.7
billion
2012
$US 1,508
billion
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
North
America
80.7 90.6 102.1 116.7 126.9 133.9 151.3 118.3 140.7 164.9 165.0
Central
& Latin
America
37.9 41.8 51.6 58.9 67.1 80.5 104.2 78.2 97.2 122.3 125.8
Western
Europe
226.7 275.3 330.9 372.1 415.5 499.3 541.7 424.5 486.7 577.1 543.7
Central and
Eastern
Europe
23.8 30.4 38.6 46.2 57.1 74.6 91.7 67.4 83.9 104.1 105.3
GCC 5.7 6.4 7.6 9.4 11.2 14.0 14.7 14.3 22.2 23.9 20.1
Middle East
(Excl GCC)
5.9 7.0 8.9 9.8 11.2 13.7 16.2 14.1 16.6 18.8 17.9
Africa 11.3 12.8 15.9 17.8 20.6 26.2 32.5 29.3 33.9 42.7 43.8
Asia 137.8 163.5 209.6 242.3 269.4 316.1 373.0 311.7 414.6 498.6 486.6
World Total 529.7 627.9 765.1 873.2 979.1 1,158.2 1,325.2 1,057.7 1,295.9 1,552.3 1,508.3
World Chemicals (Excluding Pharmaceuticals) Imports by Region, US$ billion
Gl obal chemi cal s
consumpt i on by
r egi on and count r y
The worldwide chemicals consumption (or domestic
sales) in 2012 is estimated at $US4.9 trillion. This is
almost double the 2005 fgure which was estimated at
$US2.6 trillion. Asian countries account for the majority
of the worlds chemicals consumption accounting
in 2012 for 49.3% of worlds total. Among all Asian
countries, consumption in China was the highest.
With $US1.4 trillion worth of chemicals consumption
Global Domestic Chemicals Sales (2005-2012) $US Billion
Note: GCC fgures do not include Pharmaceuticals, Domestic sales is equivalent to domestic consumption.
2'648.9
2'922.6
3'373.5
3'829.1
3'462.6
4'107.5
4'920.9 4'973.2
2005 2006 2007 2008 2009 2010 2011 2012
Western Europe
22.9%
North America
16.8%
Latin America
4.8%
Central & Western Europe
2.7%
Asia Pacific (Excl China)
21.1%
China
28.2%
Africa % Middle East (Excl GCC)
2.2%
GCC
1.3%
CAGR (2005-2012)
9.4%
2012
$US 4,973.2
billion
in 2012, China accounted for 28.2% of worlds total
consumption in the same year. The consumption of
chemicals in GCC countries in 2012 is estimated at
$US64.7 billion which accounts for 1.3% of worlds
total consumption. This is lower than the GCCs 2.5%
share of the worlds total chemicals industrys output
in the same year and is due to the regions export
orientation.
Note: GCC fgures do not include Pharmaceuticals, Domestic sales is equivalent to domestic consumption
Domestic Sales of Chemicals (2005-2012), $US billion
Region 2005 2006 2007 2008 2009 2010 2011 2012
China 325.3 328.3 460.8 646.8 722.6 943.0 1,272.8 1,403.5
Asia Pacic (excI China) 487.7 610.8 686.7 750.8 703.0 885.6 1,044.6 1,050.3
Western Europe 865.1 933.3 1,077.6 1,191.6 973.1 1,047.4 1,196.0 1,137.9
North America 669.5 722.4 791.8 815.5 680.3 764.5 851.8 836.9
Latin America 142.8 156.8 173.4 182.4 182.9 210.7 247.5 238.8
Central & Western Europe 70.0 77.3 84.7 109.5 82.8 110.0 134.6 133.2
Africa & Middle East
(exlc GCC)
66.2 66.8 63.7 90.9 76.7 92.6 101.8 107.7
GCC 22.3 26.9 34.8 41.6 41.1 53.3 71.9 64.7
Total Domestic Sales 2,648.9 2,922.6 3,373.5 3,829.1 3,462.6 4,107.5 4,920.9 4,973.2
I nt ernat i onal Trade
( 2012)
9.
I nt r oduct i on
Globalization of the chemicals industry date back
to the 1960s. Now almost every nation is involved
in the foreign trade of chemical products either as
supplier or consumer. Advancements in infrastructure
such as transport and telecommunications as well as
the elimination of trade barriers such as tariffs and
duties, promote and support trade between nations.
Competition between companies is extended beyond
the national borders resulting in several companies
from different nations competing for the same
customers. Commodity chemicals can be produced in
one location and downstream products manufactured
in several other locations. These products are then
shipped to many other locations to be processed
further before they ultimately become fnal products
including plastic goods, automobile parts, paints and
textiles.
Typically, industrialized nations produce wide range
of chemical products: from commodity chemicals to
specialty chemicals. Developing nations generally
produce basic chemical products.
GCC countries participate in international trade in all
segments of the chemicals industry. GPCA members
represent approximately 97% of all the chemicals
exports from the region.
GCC chemicals exports have grown rapidly over the
past decade driven primarily by capacity expansions.
The volume of chemicals exports in 2012 reached 60.7
million tons which is double its level a decade ago.
Over the 2008-2012 period, GCC chemicals export
grew by an average 11.9% per annum. The majority
of chemicals exported by the GCC are petrochemicals
(comprised of basic petrochemicals, intermediates,
fne chemicals and polymers) which accounted for
66.7% of the total chemicals export in 2012. Since
2008 volume of petrochemicals exports grew at a
CAGR of 13.4% reaching 40.5 million tons in 2012.
Polymers are the largest petrochemical product group
exported from the GCC and accounted for 27.9%
of the GCC export volume in 2012. The majority
of polymers exported by the GCC producers are
commodity thermoplastics. GCC polymers export grew
by an average 16.9% between 2008 and 2012 which is
higher than the overall export growth recorded by the
GCC chemicals industry. Part of the chemicals industry
diversifcation in the region is the polymers capacity
expansion and the consequent export of the products.
The fne chemicals group is the second largest
petrochemical group exported from the GCC. In 2012
there were 10.6 million tons of fne chemicals exports
which accounted for 17.4% of the total chemicals
export. Exports of basic petrochemicals in 2012
reached 9.9 million tons which represents 16.4% of
total export.
GCC chemi cal s expor t
by pr oduct segment
GCC Chemicals Export (2008-2012)
Source: Gulf Petrochemicals & Chemicals Association, Customs Authorities, United Nations, 2013
2008 2009 2010 2011 2012 2008 2009 2010 2011 2012
38.7
43.6
51.6
55.1
60.7
CAGR (2008-2012)
11.9%
GCC Fertilizers export represented 24.1% of the total
chemicals exports in 2012. Over the past decade
GCC fertilizers exports have almost tripled in terms
of volume, reaching 14.6 million tons in 2012. Along
fertilizers, GCC exports inorganic chemicals which
reached 3.8 million tons in 2012 accounting for 6.2% of
the total GCC chemicals export.
Specialty chemicals and consumer chemicals,
although high value products, represent a minor share
in GCC chemicals exports accounting for 1.6% and
1.3% accordingly.
GCC chemicals export grew by
11.9% p.a between 2008 and 2012.
The value of GCC chemicals exports in 2012
reached $US52.7 billion. The majority of exports are
petrochemicals (including basic, intermediates, fne
chemicals and polymers). GCC polymers exports in
2012 are valued $US22.7 billion which accounts for
43.1% of the total exports by value. As highlighted
previously, the majority of GCC polymers exports are
commodity thermoplastics. Following rapid polymers
capacity expansion in the GCC, polymers exports
saw the highest growth rate among other product
segments. Exports of plastics in primary forms grew at
an average rate of 25% between 2002 and 2012.
With $US18.5bn worth of exports in 2012, other
petrochemicals (basic, intermediates, fne chemicals)
represented 35.2% of total chemicals export. Since
2002, GCC export of petrochemicals measured in
value terms grew at an average rate of 20.3%.
Within the basic inorganics segment, the majority
of GCC export is comprised of fertilizers. Due to
commodity nature of fertilizers, their share in exports
measured in value is signifcantly lower than of that
GCC Chemicals Export by Product Segment, 2012
Total: US$ 52.7 bn
Polymers
43.1%
Other petrochemicals
35.2%
Fertilizers
9.5%
Industrial Gases
0.2%
Inorganic chemicals 3.5%
Specialty chemicals 6.7%
Consumer chemicals 1.8%
P
e
t
r
o
c
h
e
m
i
c
a
l
s
7
8
.
3
%
B
a
s
i
c

I
n
o
r
g
a
n
i
c
s
1
3
.
2
%
measured in volume. In 2012, fertilizers accounted
for 9.5% share of the total value of GCC chemicals
exports. Historical growth of fertilizers exports of
CAGR (2002-2012) 23% is one of the highest among
other products.
Specialty chemicals and consumer chemicals are high
value-added products. GCC countries has exported
$US 3.5 billion worth of specialty chemicals in 2012
which accounts for 6.7% of total exports. While
they presently represent only a small share, export
growth of CAGR 26.4% per annum between 2002
and 2012 demonstrates the increasing focus of the
GCC countries on production and export of specialty
chemicals. Export of consumer chemicals represent
1.8% share in the GCC chemicals export in terms of
value.
by pr oduct segment
The value of GCC chemicals exports
in 2012 reached $US52.7 billion.
Chemicals producing countries are both exporters
and importers of chemicals. In 2012 GCC countries
imported 13.6 million tons of chemicals. This import
number has grown at an average of 9.6% per annum
over the past decade. GCC countries import chemicals
from both neighboring countries (Intra-GCC Import)
and overseas (Extra-GCC Import). In 2012, the
majority of chemicals import was comprised of basic
inorganics which accounted for 40% of the total import
volume. Notably, GCC imported 4.9 million tons of
inorganic chemicals which are derivatives of various
minerals and generally do not contain carbon as
principle element. This volume accounted for 36.1%
of 2012 chemicals import to the GCC. Historically,
inorganic chemicals import to the GCC has been
high accounting for up to one third of the overall
import volume. Another segment of basic inorganics
fertilizers represented only a small share of 2.2%.
GCC polymers import reached 2.3 million tons in 2012.
Most of this volume is represented by commodity
thermoplastics. In 2012, import of polymer products
accounted for 17.3% share in total chemicals import
volume. Commodity thermoplastics are primarily used
GCC chemi cal s i mpor t
by pr oduct segment
GCC Chemicals Import by Product Segment, 2012
Total: 13.6 millions tons
Note: 2012 data for some countries is preliminary
Source: United Nations, 2013
Polymers
17.3%
22.8%
P
e
t
r
o
c
h
e
m
i
c
a
l
s
4
0
.
1
%
Fertilizers
2.2%
Inorganic chemicals
36.1%
Industrial Gases
1.7%
B
a
s
i
c

I
n
o
r
g
a
n
i
c
s
4
0
.
0
%
in packaging, building and construction and they are
imported mostly from other GCC countries, Asia and
Europe.
GCC specialty chemicals import in 2012 was
approximately 2 million tons which represented 15.5%
of the total chemicals import. The majority imported is
industrial additives and paints & inks which account for
24% and 21% of specialty chemicals import volume
respectively. Others imports include lubricant additives,
paint additives, dyes and pigments, adhesives,
catalysts, crop protection chemicals and coatings.
Import of consumer chemicals reached 0.6 million
tons in 2012 which represents 4.4% of total volume
of chemicals import. Historically, consumer chemicals
imports have represented a minor share in the total
import numbers.
GCC countries imported 13.6 MT of
chemicals in 2012.
9. International Trade (2012) 9. International Trade (2012)
The value of GCC chemicals import in 2012 is
estimated at $US20.1 billion, the majority of which
is specialty chemicals. In 2012 GCC countries have
imported $US6.5 billion worth of specialty chemicals
which represents 32.1% of the total chemicals
import. The majority of specialty chemicals imported
include: paints and inks, industrial additives, catalysts,
lubricant additives, dyes and pigments, crop protection
chemicals, adhesives, rubber processing chemicals,
paint additives, contraction chemicals, coatings
and other miscellaneous chemicals. Between 2008
and 2012, import of specialty chemicals to the GCC
measured in value grew at an average rate of 17.7%
per annum.
Polymer imports to the GCC stood at US$4.6 billion in
2012 which accounts for 23% of the GCC chemicals
import. The majority of polymers imported are plastic
resins import of which grew at an average rate of
10.2% between 2008 and 2012.
GCC Chemicals Import by Product Segment, 2012
Total: $US 20.1bn
Source: United Nations, 2013
Value of imported petrochemicals (basic, intermediate
of fne chemicals) represents 23.1% or $US4.6 billion
in 2012. Historic increase of volume of petrochemicals
import has resulted in the high growth of import
measured in value terms which grew by 23.2% per
annum over the 2008-2012 period.
GCC import of inorganic chemicals has reached
$US2.4 billion in 2012. This is the largest product
segment within basic inorganics and has not changed
signifcantly changed over the past decade.
The import of consumer chemicals in 2012 in value
terms is $US1.5 billion which accounts for 7.5% of
chemicals import to the GCC.
Polymers
23.0%
23.1%
P
e
t
r
o
c
h
e
m
i
c
a
l
s
4
6
.
1
%
Fertilizers
0.9%
Inorganic chemicals
11.9%
Industrial Gases
1.5%
B
a
s
i
c

I
n
o
r
g
a
n
i
c
s
1
4
.
3
%
by pr oduct segment
In 2012, Saudi Arabia was the largest chemicals
exporter in the region, accounting for 59% of the total
regional export volume. While Saudi Arabia continues
to be the leading regional exporter of chemicals, its
share has signifcantly dropped over the past decade
from 70% in 2002 to 58% in 2012. This decline has
been mostly attributed to the export growth from other
GCC countries. Saudi Arabias chemicals exports
over the past decade were largely polymers exports,
particularly plastics in primary forms, as well as
fertilizers and petrochemicals.
Qatar is the second largest exporter of chemicals in
the GCC representing 17% of the regions chemicals
exports. With capacity expansions taking place over
the past decade, Qatars chemicals exports have
grown at an average rate of 13.7% per annum since
2002. As a result, Qatars share in the chemicals
export volume has increased from 12% in 2002 to 17%
in 2012. Fertilizers and petrochemicals account for the
majority of Qatars chemicals exports.
With 6.8 million tons of exports, Oman is the third
largest exporter in the GCC. Over the past decade
chemicals exports from Oman have experienced
tremendous growth: from one of the minor exporters to
one of the top three GCC exporters representing 11%
of GCC chemicals exports in terms of volume. Similar
to Qatar, fertilizers are Omans major chemical export.
Kuwaits share in the GCC chemicals export has been
by count r y
GCC Chemicals Export by Origin
17.0
19.3
16.8
22.6
31.7
35.8 2.8
5.6
7.0
7.2
7.4
10.0
0.1
2.0
3.5
5.7
6.9
2.3
2.6
2.7
2.3
3.5
3.6
0.9
2.0
3.2
1.2
0.1
1.1
1.1
1.7
1.2
1.8
1.3
1.2
1.2
24.4
29.8
31.5
38.7
51.6
60.7
0
10
20
30
40
50
60
70
2002 2004 2006 2008 2010 2012
M
i
l
l
i
o
n

T
o
n
s
CAGR (2002-2012)
9.6%
around 6% over the past years. The majority of
Kuwaits exports are fertilizers and polymers. Kuwaits
export growth has been modest in comparison with
other GCC countries between 2002 and 2012
chemicals exports grew at CAGR 4.5%.
The United Arab Emirates exported about 3 million
tons of chemicals in 2012 which represents 5% of the
GCC overall exports. UAE exports have registered a
steady growth over the past decade of CAGR 13% and
this increase is driven by the growth of its polymers
and fertilizers segments. Currently these products
account for the majority of UAEs chemical exports.
Bahrain is a minor GCC exporter representing 2% in
the GCC chemicals exports. Exports from Bahrain are
almost unchanged over the past decade and therefore
its share has shrunk from 5% a decade ago to current
2%. Exports from Bahrain are concentrated around
fertilizers exports which represent the majority of their
international trade of chemicals.
Saudi Arabia is the largest
chemicals exporter in the GCC.
Over the past decade, GCC chemicals imports
have grown at an average rate of 9.6% per annum
reaching 13.6 million tons in 2012. Saudi Arabia is the
largest chemicals importer in the GCC representing
approximately 33% of the total volume of chemicals
imports. The majority of chemicals imports to Saudi
Arabia are inorganic chemicals which represent
about one third of the chemicals import volume.
Petrochemicals also represent a considerable share
in Saudi Arabias chemicals import. In 2012, about 1.2
million tons of petrochemicals were imported by the
country which accounts for 26% of its total chemicals
import. While Saudi Arabia is the largest polymers
producer in the region, there were approximately 0.7
million tons of commodity thermoplastics imported
in 2012. Import of specialty chemicals reached 0.8
million tons in 2012 which represents about 18% of the
countrys import volume.
United Arab Emirates is the second largest chemicals
importer in the region with 29% of the regions
import volume. The majority of chemicals imported
to UAE are plastic resins. In 2012 the country
imported approximately 1 million tons of commodity
thermoplastics. Petrochemicals is the second largest
segment in the UAEs chemicals import with 0.8
million tons imported in 2012, followed by specialty
chemicals.
by count r y
GCC Chemicals Import by Country, 2002-2012
1.8
2.4
4.3
4.3
4.9
3.9
0.3
0.4
0.4
0.6
0.5 2.0
0.3
0.2
0.6
0.7
1.1
1.8
1.1
0.8
1.0
1.7
1.3
1.0
0.2
0.3
0.5
0.7
0.8
0.5
5.4
6.3
9.6 9.5
12.8
13.6
0
2
4
6
8
10
12
14
16
2002 2004 2006 2008 2010 2012
M
i
l
l
i
o
n

T
o
n
s
CAGR (2002-2012)
9.6%
Oman imported 1.9 million tons of chemicals in 2012,
almost half of which are petrochemical products.
Inorganic chemicals accounted for 28% of the
countrys chemicals imports, followed by plastic resins
which accounted for 11%. Omans chemical imports
has grown by an average 20% per annum over the
past 10 years is highest among other GCC states.
Qatar imported 1.8 million tons of chemicals in 2012,
the majority of which are inorganic chemicals and
specialties, particularly industrial additives and paints
& inks. The chemicals import growth rate in Qatar is
one of the highest in the region over the past decade
it has grown at an average 19.8% per annum.
Rest of the GCC countries: Bahrain and Kuwait
imported less than 1 million tons of chemical products
in 2012. The majority of chemicals imported by
Bahrain are inorganic chemicals which account for
about 75% of chemicals import volume. Kuwait imports
mostly inorganic chemicals (32%), plastic resins (30%)
and specialty chemicals (22%).
Traditionally, Asia has been the largest export market
for GCC chemicals producers accounting for half of
the GCC exports by volume. In 2012, GCC countries
exported 30 million tons of chemicals to Asia with
China being the main destination. Development of the
manufacturing sector in China has boosted its demand
for raw materials including chemicals, as a result GCC
chemicals exports to China grew at an average rate
of 13% over the past 10 years. Exports to other Asian
countries grew as well but at slower pace of CAGR 6%
between 2002 and 2012.
Europe) is the second largest export destination for the
GCC chemicals industry. Europe accounted for 12.9%
of GCC total exports in 2012 or 7.8 million tons.
Regionalization of chemicals trade in the GCC is on
the rise. Over the past decade exports within GCC
region grew at an average rate of 13% per annum. The
share of GCC intra-regional trade of chemical products
(by volume) increased from 4.2% in 2002 to 6.2% in
2012.
by dest i nat i on
GCC Chemicals Export by Destination (2002-2012)
North and South America account for 7.2% of the GCC
exports. Although, North America continues to be the
largest trading partner, exports to South and Central
America have been steadily increasing reaching 1.6%
share in the GCC chemicals exports in 2012.
Africa has not been included as a separate area of
destination; however it represents about 75% of the
exports currently accounted for under Rest of the
world.
China
11.1%
South America
0.3%
Rest of the World
14.5%
Europe
11.3%
GCC
4.4%
North America
11.2%
Asia (Excl China)
47.1%
China
15.3%
South America
1.6%
Rest of the World
24.2%
Europe
12.9%
GCC
6.2%
North America
5.6%
Asia (Excl China)
34.2%
2002
24.4
million tons
2012
60.7
million tons
Asia is the largest export market for
the GCC chemicals producers.
The value of GCC chemicals exports in 2012 reached
$US52.7 billion, the majority of which is exported to
Asia. Between 2002 and 2012 GCC chemicals exports
in value terms grew at average rate of 22% per
annum. Asia traditionally has been the largest export
market for GCC chemicals producers accounting
for half of the GCC export. In 2012, value of GCC
chemicals export to Asia is estimated at $US 28.8
billion which accounts for 54.6% of GCC chemicals
export. As Asia continues to build its infrastructure
and increase production this trend is likely to continue.
China is the major Asian destination for GCC
chemicals export. In 2012 GCC exported $US20.2
billion worth of chemical products to China which is
70% of all exports to Asia. Over the past decade,
GCC chemicals export to China has grown at CAGR
of 22.3%. As a result of this growth, the total GCC
chemicals export to China, measured in value terms,
increased from 13.8% in 2002 to 16.3% in 2012.
Europe) is the second largest export destination for
GCC chemicals industry. GCC chemicals export to
Europe is estimated at $US8.4 billion which accounts
for 15.9% of the total value of GCC exports in 2012.
With average growth of 23.2% per annum over the
past decade, GCC export growth to Europe measured
in terms of value is double that measured in terms of
volume.
Intra-GCC chemicals export accounted for 9.1% of
the total value of regional export or $US4.8 billion.
Intra-GCC export over the past decade has grown by
GCC Chemicals Export by Destination (2002-2012)
a double-digit growth of 21.2% per annum, similar to
the overall export growth rate. As a result the share of
intra-GCC export measured in value terms averaged
9%-10% over the past decade.
The value of chemicals exported to North and Latin
America reached $US3 billion in 2012. This represents
a 5.7% share in the total export value of GCC
chemicals in the same year. While North America
continues to be the largest trading partner in the
Americas, export to South America grew at a higher
pace. As a result, the share of Latin America has
increased from 0.1% in 2002 to 1.9% in 2012.
Africa hasnt been included as a separate area of
destination; however it represents approximately 60%
of the export value currently accounted for under Rest
of the world. Export to African countries grew at an
average rate of 20.3% per annum and reached $US4.3
billion in 2012. This represents 8.2% of the total GCC
chemicals export measured in value terms.
Europe
14.7%
GCC
GCC
10.0%
North America
7.9%
South America
0.1%
Rest of the Word
15.2%
Other Asia (Excl China)
38.3%
China
13.8%
Europe
15.9%
9.1%
North America
3.8%
South America
1.9%
Rest of the Word
14.7%
38.3%
China
16.3%
2002
$US 7
billion
2012
$US 52.7
billion
by dest i nat i on
Value of GCC chemicals exports
grew by 22% p.a over the past
decade.
GCC chemicals imports have grown at an average rate
of 9.6% over the past decade reaching 13.6 million
tons in 2012. The majority of chemicals imported by
the GCC states originate from Asian countries which
account for 38% of import volume or 5 million tons.
China and Australia are the biggest Asian partners of
GCC in chemicals import. The majority of Australian
import is comprised of inorganic chemicals, while
import from China is represented by the mix of
inorganic chemicals, petrochemicals and plastic resins.
Intra-GCC import accounts for 28% of total chemicals
imported in 2012. Petrochemicals and polymers
represent the majority of intra-GCC trade. Europe is
the third largest trading partner for GCC in terms of
chemicals import. In 2012, GCC imported 2.4 million
tons from Europe (comprised of Western, Central and
Eastern Europe). Majority of chemicals imported from
Europe are inorganic chemicals, petrochemicals and
plastic resins. They represent 59% of chemicals import
volume from Europe.

by or i gi n
GCC Chemicals Import, Million tons
Source: Gulf Petrochemicals & Chemicals Association, Customs Authorities, UN Comtrade, 2013
2002
5.4
6.3
9.6
9.5
12.8
13.6
2004 2006 2008 2010 2012
China
9%
Europe
18.0%
GCC
29.0%
5.0%
North America
6.0%
30.0%
Africa
3.0%
China
9.0%
CAGR (2002-2012)
9.6%
2012
13.6
million tons
Import from the Middle East (Excluding GCC) is
estimated at 0.65 million tons which accounts for 5%
of all GCC imports. GCC import from the Middle East
is mostly comprised of inorganic chemicals which
represent close to 80% of total volume of chemicals
imported from this region. The main trading partner of
the GCC in the Middle East is Jordan; about 70% of
chemicals imported from Middle Eastern countries is
from Jordan.
GCC chemi cal s
t r ade bal ance by
pr oduct segment
GCC is an important player in the
global chemicals market. GCC
chemicals industry registered
a growth of 13.5% per annum
between 2008 and 2012. Trade
balance growth over this period
is mostly driven by surplus in
export volume of basic inorganics
(which includes fertilizers) and
polymers. In 2012, highest trade
balance was registered among
petrochemicals. Polymers trade
balance reached 14.5 million tons
in 2012, almost double of that in
2008. Petrochemicals (excluding
polymers) registered trade balance
of 20.4 million tons, up from 13.8
million tons in 2008. This is a
growth of 10.3% per annum. Within
basic inorganics segment, trade
balance growth between 2008 and
2012 reached 11.5% per annum. In
2012, there was 14.6 million tons
trade balance of basic inorganics in
the GCC.
GCC Chemicals Trade Balance by Product Segment
GCC Chemicals Trade Balance by Product Segment (millions tons)
Source: Gulf Petrochemicals & Chemicals Association, Customs Authorities, UN Comtrade,
2013
2013
10.3
13.0
9.5
13.8
19.4
20.4
3.7
4.6
4.2
7.3
11.6
14.5
5.4
6.9
9.0
9.4
9.8
14.6
18.9
23.5
21.9
29.2
38.8
48.6
0
10
20
30
40
50
60
2002 2004 2006 2008 2010 2012
T
r
a
d
e

B
a
l
a
n
c
e

(
M
i
l
l
i
o
n

T
o
n
s
)

13.8
7.3
9.4
-0.8 -0.4
20.4
14.5 14.6
-1.0 0.0
Petrochemicals
(Excl polymers)
Polymers Basic Inorganics Specialty Chemicals Consumer Chemicals
2008 2012

GCC chemi cal s t r ade
bal ance by count r y
GCC trade balance growth over the
period between 2002 and 2012 is
mostly driven by surplus in export
volume from Saudi Arabia. In
2012, Saudi Arabias trade balance
reached 31.3 million tons, up from
20.9 million tons in 2008. This is
the growth of 10.3% per annum.
Second largest producer in the
region Qatar registered a trade
balance of 9.4 million tons. Since
2008 chemicals trade balance in
Qatar grew by an average 9.8%
per annum.
Growth of chemicals trade balance
between 2008 and 2012 in Oman
and Kuwait are highest in the GCC.
In Kuwait trade balance grew by
18.4% per annum, followed by
Oman with growth of 13.3% per
annum. In 2012, chemicals trade
balance in Oman reached 4.9
million tons, while in Kuwait it was
slightly lower 3.1 million tons.
GCC Chemicals Trade Balance by country
GCC Chemicals Trade Balance by Country (millions tons)
2013
2013
15.2
16.9
13.7
20.9
27.3
31.3
2.5
5.4
6.5
6.5
6.3
9.4
-0.2 -0.2
1.6
3.0
5.2
4.9
2.1
2.4 2.3
1.6
2.7
3.1
18.9
23.5 21.9
29.2
38.8
48.6
0
10
20
30
40
50
60
2002 2004 2006 2008 2010 2012
T
r
a
d
e

B
a
l
a
n
c
e

(
M
i
l
l
i
o
n

T
o
n
s
)

20.9
6.5
3.0
1.6
-0.4 -2.2
31.3
9.4
4.9
3.1
0.2 -0.4
Saudi Arabia Qatar Oman Kuwait Bahrain UAE
2008 2012

Asia has traditionally been the largest export market
for GCC chemicals producers accounting for half of
the GCC exports in terms of volume or $US28.8 billion.
In 2012, GCC recorded export of chemicals to about
30 Asian countries. Out of them, 12 countries account
for 95% of all export to this region: China, India,
Singapore, Taiwan, Pakistan, Thailand, South Korea,
Australia, Malaysia, Indonesia, Japan and Bangladesh.
China is the largest Asian export market for GCC
chemical registering $US8.7 billion worth of chemicals
import from the GCC. The majority of the chemicals
that China imports from the GCC are petrochemicals
and polymers. India is the second largest market for
GCC export to Asia. $US5 billion worth of chemicals
were exported to India in 2012. Half of the export is
comprised of petrochemicals, polymers and fertilizers
which accounted for 27% and 13% accordingly. GCC
chemicals export to Singapore in 2012 is valued at
$US3.8 billion out of which polymers represent the
majority share of 70%.

Det ai l ed anal ysi s
of GCC chemi cal s
expor t t o Asi a
GCC Chemicals Export to Asia by Country (2002-2012)
Source: GCC Customs Authorities, United Nations, 2013
Others
21%
Others
5%
Japan
6%
Japan
3%
Bangladesh
2%
Indonesia
6%
Indonesia
3%
Malaysia
2%
Malaysia
3%
Australia
6%
Australia
4%
South Korea
2%
South Korea
4%
Thailand
5%
Thailand
5%
Taiwan
5%
Pakistan
Pakistan
5%
6%
Singapore
8%
Singapore
13%
India
11%
India
11%
China
27%
China
27%
2002
$US 3.7
billion
2012
$US 28.8
billion
Petrochemicals export in 2012 is valued at
$US24.2 billion which accounted for 84% of total
chemicals export to Asia. About 40% of commodity
petrochemicals export to Asia is bound for China,
followed by India which accounts for 17%. GCC
polymers export to Asia in 2012 is valued at $US10.6
billion which is 36.7% of GCC chemicals export to
Asian countries. Major Asian destinations for GCC
polymers export are China, Singapore and India.
Another notable product segment of GCC chemicals
export to Asia is fertilizer, export of which reached
$US2.9 billion. The major markets for GCC fertilizers
industry in Asia are Thailand, India and Australia.
Thailand accounted for 26% of fertilizers export to
Asia, followed by India and Australia which accounted
for 22% and 16% respectively.
GCC exports to about 30 countries
in Asia.
GCC chemi cal s
expor t t o Asi a by
pr oduct segment
GCC Chemicals Export to Asia by Product Segment, 2012
Total:$US 28.8 bn
36.7%
Polymers
47.3%
P
e
t
r
o
c
h
e
m
i
c
a
l
s
8
4
.
0
%
Fertilizers
10.0%
Inorganic chemicals
4.2%
Industrial Gases
0.1%
B
a
s
i
c

I
n
o
r
g
a
n
i
c
s
1
4
.
3
%
Petrochemicals export to Asia
accounts for 84% of total export.
Export of fertilizers represent 10% of
the total export to Asia.
GCC Chemicals Export to Europe by Country (2002-2012)
Europe) is the second largest export destination for
GCC chemicals industry. Europe accounted for 12.9%
of GCC total chemicals exports in 2012 or 7.8 million
tons. Based on the export volume, European Union
member states import about 70% of GCC chemicals
export bound to Western, Central and Eastern Europe.
GCC chemicals reach about 50 countries located in
Western, Central and Eastern Europe. Out of them,
nine countries account for 97% of total volume of
chemicals exported to this region: Turkey, Belgium,
Netherlands, Italy, Spain, Poland, Malta, UK and
France.
Turkey is the largest European market for the GCC
when members of European States are counted
separately. In 2012, chemicals export to Turkey
reached 2 million tons which accounts for 26% of total
export to Europe. This is a signifcant increase from
8% share a decade ago. Volume of GCC export to
Turkey grew by CAGR 25% between 2002 and 2012
with polymers representing the majority followed by
petrochemicals. Belgium is the second main European
destination. In 2012, GCC exported 1.9 million tons to
this country out of which polymers and petrochemicals
represent the majority. With the increasing volume
of export, Belgiums receipt of total GCC export to
Europe has more than doubled from 10% in 2002
to 24% in 2012. While The Netherlands continue to
be one of the main European destinations, its share
has dropped from 32% in 2002 to 14% in 2012. Of the
1 million tons of chemicals shipment bound for The
Netherlands, 90% are petrochemicals.
Europe is the second largest export destination for
GCC chemicals industry. GCC chemicals export
to Europe is valued at $US8.4 billion, out of which
polymers account for 65.7% or $US5.5 billion.
Petrochemicals export to Europe reached $US2.6
billion in 2012 and is the second major product group
exported to this region. The Netherlands, Turkey and
Belgium import the majority of GCC petrochemicals
shipped to Europe.
Spain
18%
Spain
8%
Italy
15%
Italy
12%
France
3%
France
2%
UK
5%
UK
3%
Malta
4%
Malta
4%
Poland
4%
Turkey
8%
Belgium
10%
Belgium
24%
Turkey
26%
Netherlands
32%
Netherlands
14%
Others
5%
Others
3%
2002
2.8
million tons
2012
7.8
million tons
Det ai l ed anal ysi s
of GCC chemi cal s
expor t t o Eur ope
Europe is the second largest export
destination for GCC chemicals
industry.
GCC Chemicals Trade Flows with Major Geographic Blocks, 2012
Source: Gulf Petrochemicals & Chemicals Association, GCC Customs Authorities, United Nations, 2013
Europe
Export: 7.8 million tons
Import: 2.4 million tons
China
Africa
Asia (excl China)
Import: 4 million tons
Middle East
(Excl GCC)
North America
Latin America
GCC Chemicals
trade Balance of
$US 32.6 bn
World
GCC Chemicals Trade Flows with Major Geographic Blocks, 2012
Source: Gulf Petrochemicals & Chemicals Association, GCC Customs Authorities, United Nations, 2013
Europe
Export: $US 8.4 bn
Import: $US 5.7 bn
China
Export: $US 8.6 bn
Import: $US 1.7 bn
Africa
Export: $US 4.3 bn
Import: $US 0.4 bn
Asia (excl China)
Export: $US 20.2 bn
Import: $US 4.9 bn
Middle East
(Excl GCC)
Export: $US 2.6 bn
Import: $US 0.3 bn
North America
Export: $US 1.9 bn
Import: $US 2.3 bn
Latin America
Export: $US 1 bn
Import: $US 0.2 bn
World
Export: $US 52.7 bn
Import: $US 20.1 bn
GCC Chemicals
trade Balance of
$US 32.6 bn
GCC I nt ra- Regi onal
Trade ( 2012)
10.
10. GCC Intra-Regional Trade (2012)
Over the past decade intra-GCC chemicals trade has
grown at an average rate of 13% per annum. While
regional chemicals trade is increasing, it remains small
when compared to other export destinations: in 2012 it
accounted for 6% of the total export volume. Transport
infrastructure, which is one of the enablers that affects
the scale of regional trade, has become increasingly
important for the GCC countries. As described in
previous chapters GCC regional trade of chemicals
represents only a third of total chemicals imports.
Although the extra-GCC chemicals import requires
understanding on the product level, regional trade
can be promoted through investments in strategic
areas such as transport infrastructure which improves
linkages between countries and therefore facilitates
trade.
The majority of chemicals delivered within the
region are polymers and other petrochemicals which
account for 30.1% and 38.1% respectively. In 2012,
GCC countries have exported 1.4 million tons of
petrochemicals to the neighboring states growing at
an average 31% per annum between 2002 and 2012.
As for the polymers, there were around 1 million tons
of intra-GCC exports in 2012. Polymers exports within
the region grew at an average rate of 12% per annum
between 2002 and 2012.
GCC Intra-Regional Chemicals Export, Million Tons
Source: Gulf Petrochemicals & Chemicals Association (GPCA), United Nations, 2013
1.1
2.1
3.0
2.8
3.5
3.7
2002 2004 2006 2008 2010 2012
CAGR (2002-2012)
13%
GCC i nt r a- r egi onal
chemi cal s t r ade
Due to market proximity, regional trade of consumer
chemicals and specialties has been on the rise over
the past decade. Intra-GCC export of consumer
chemicals grew by CAGR (2002-2012) of 12% and
specialties by 11% per annum. In 2012, intra-GCC
export of consumer chemicals reached 0.45 million
tons which accounts 12% of total chemicals exports
within the region. Similarly, regional export of specialty
chemicals reached 0.3 million tons in 2012 growing by
an average 11% per annum between 2002 and 2012.
The majority of specialty chemicals exported within the
region are paints & inks, industrial additives and paint
additives.
Within the basic inorganics segment, the majority
of intra-GCC exports are attributed to inorganic
chemicals, exports of which reached 0.3 million tons in
2012.
Over the past decade intra-GCC
chemicals trade grew by 13% p.a.
chemi cal s t r ade
GCC Intra Regional Chemicals Export by Segment, 2012
Total: 3.7 million tons
Source: Gulf Petrochemicals & Chemicals Association (GPCA), United Nations, 2013
30.1%
Polymers
38.1%
P
e
t
r
o
c
h
e
m
i
c
a
l
s
6
8
.
2
%
Fertilizers
1.8%
Inorganic chemicals
8.1%
Industrial Gases
1.1%
B
a
s
i
c

I
n
o
r
g
a
n
i
c
s
1
1
.
0
%
Polymers account for 30.1% of GCC
intra-regional trade.
Basic, intermediate and ne
chemicals account for 38.1% of
GCC intra-regional trade.
Intra-GCC trade accounts for 6% of the total GCC
chemicals export measured in volume terms. While the
low share of regional exports refects the importance
of other regions of the world for the regional chemicals
industry, when looking at the individual product
segments, there are products which are mostly
exported within the GCC region.
Industrial gases and most of the consumer products
are usually shipped within shorter distances.
Therefore, Intra-GCC trade represents a large share in
total GCC exports of these products: 72% of industrial
gases and 56% of consumer chemicals are shipped
regionally. Leading intra-GCC exporters within these
segments are Qatar and Saudi Arabia: Qatar is the
largest regional exporter of industrial gases and Saudi
Arabia the largest regional exporter of consumer
chemicals.
Another notable segment is specialty chemicals: 35%
of total export by volume took place within the GCC
region. Looking at various specialty chemicals, GCC
producers of dyes and pigments ship 73% of their
total export volume to GCC countries. Intra-GCC trade
Share of Intra-GCC Exports in GCC Chemicals Export Volume, 2012
Note: Based on volume of export
Source: Gulf Petrochemicals & Chemicals Association, United Nations, 2013
72%
56%
35%
8.1% 7% 6% 0.5% 6%
28%
44%
65%
91.9% 93% 94%
99.5%
94%
Petrochemicals
(Excl Polymers)
Polymers Fertilizers Industrial
Gases
Inorganic
Chemicals
Specialty
Chemicals
Consumer
Chemicals
Chemicals
Total
Intra-GCC Export Extra-GCC Export
GCC i nt r a- r egi onal t r ade
i n chemi cal s expor t
within this segment is dominated by Saudi Arabia.
This segment usually serves the paper, textile and
plastic production industries. Intra-GCC exports of
crop protection chemicals which include products
that help control harmful insects and products control
germs and pests, represents 48% of the total export
volume. This segment primarily serves the farm sector,
although other sectors such as household, public
sector and utilities are important as well. Intra-GCC
trade within this segment is lead by the UAE which
accounts for 80% of total shipments within the region.
Regional export of cosmetic additives accounts for
41% of total export within this product segment. These
are functional chemicals which are used to improve
performance and provide special properties to various
consumer products. Saudi Arabia is the largest
exporter of cosmetic additives in the region. Within the
paints and inks and paint additives segment, intra-
GCC trade represents 25% of the total export. This
segment serves packaging, newspaper and publishing/
printing industries. Intra-GCC trade of these products
is lead by Saudi Arabia which represents the majority
of export volume.
Intra-GCC chemicals trade has
reached $US 4.8 billion. Over
the past decade, it has grown
by an average of 21.2% per
annum. Intra-GCC chemicals
fows remain relatively small in the
GCC overall chemicals exports.
In 2012 it represented only 9.1%
of the chemicals export in value
terms. Looking at the composition
of intra-GCC chemicals export,
polymers account for the majority.
In 2012, $US1.6 billion worth of
polymers were shipped within the
region which represents 33.5%
of the regional chemicals trade.
Other commodity petrochemicals
represent the second largest
product segment in the regional
chemicals trade. While volume
wise they account for the majority,
the relatively lower value of
commodity petrochemical products
in comparison with polymers is
responsible for their lower share in
intra-GCC chemicals trade in terms
of value. In 2012 intra-GCC bulk
petrochemicals exports reached
$US1.2 billion.
Intra-GCC export of consumer
chemicals represent 20.3% of the
regional chemicals trade measured
in value terms. In 2012 it reached
$US0.9 billion registering an
average growth of 20% per annum
between 2002 and 2012. Similarly,
intra-GCC export of specialty
chemicals is estimated at $US0.8
billion with an average growth over
the past decade of 20% per annum.
GCC Intra-Regional Chemicals Exports, $US million
GCC Chemicals Exports by Product Segment, 2012
Total. $US 4.8 bn
2013
2013
706
1'022
2'100
2'604
3'185
4'814
2002 2004 2006 2008 2010 2012
CAGR (2002-2012)
21.2%
Consumer Chemicals 20.3%
Polymers
33.5%
24.6%
P
e
t
r
o
c
h
e
m
i
c
a
l
s
5
8
.
1
%
Fertilizers
0.5%
Industrial Gases
1.5%
Inorganic chemicals
3.0%
B
a
s
i
c

I
n
o
r
g
a
n
i
c
s
5
.
0
%
chemi cal s t r ade i n
val ue t er ms
Intra-GCC trade represents only 28% of total
chemicals imported by the GCC countries measured
in terms of volume. Looking at each individual product
segment, the highest share of intra-GCC trade in all
imports has been achieved by the industrial gases
and consumer chemicals segments. Industrial gases
and most of the consumer products are usually
shipped shorter distances. Therefore, Intra-GCC
trade represents a large share in total GCC import
of these products: 68% of industrial gases and 45%
of consumer chemicals are imported from within the
region.
Another notable segment is plastics in primary forms.
Intra-GCC trade represented 42% of their total import
measured in terms of volume. UAE is the largest
importer of plastic resins; in 2012 over 1 million tons
of plastics in primary forms were imported by the UAE
alone.
Share of Intra-GCC Trade in GCC Chemicals Import Volume, 2012
Note: Based on volume of export
Source: Gulf Petrochemicals & Chemicals Association, United Nations, 2013, Note: Due to the shipment period intra-regional import may not
equal to intra-regional export in the same period.
68%
45%
42%
30%
26%
18%
13%
28%
32%
55%
58%
70%
74%
82%
87%
72%
Petrochemicals
(Excl Polymers)
Polymers Fertilizers Industrial
Gases
Inorganic
Chemicals
Specialty
Chemicals
Consumer
Chemicals
Chemicals
Total
t r ade i n chemi cal s
i mpor t
Among other chemicals, inorganic chemicals are the
largest product segment in GCC chemicals import.
Intra-GCC import accounts for 13% of the total 4.5
million tons of inorganic chemicals imported by the
GCC countries. Qatar and Saudi Arabia are major
importers of inorganic chemicals. Since inorganic
chemicals are produced by using naturally occurring
minerals, some of these minerals may not be available
in the GCC and therefore import is essential to fulfll
the domestic demand.
Intra-GCC trade represents 28%
of total chemicals imported by the
GCC.
Empl oyment ( 2012) 11.
11. Employment (2012)
In 2012, more than 138,000 people were employed by
the GCC Chemicals industry. This fgure represents
direct employment by the industry total number
of people who work in the manufacturing plants, as
well as people who work outside the plant but who
belong to, and paid by, the company, such as sales
representatives, supply chain personnel, supporting
administration.
Direct employment grew by an average annual growth
rate of 13.5% from 2008 to 2012. In 2012 alone direct
employment grew by 18% in comparison with 2011.
Saudi Arabia is the largest employer retaining 55% of
the regional workforce in the petrochemicals sector
or 76,500 employees. Since 2008, chemicals industry
employment is Saudi Arabia has grown on average
by 12.7% per annum which is slightly lower than an
overall GCC employment growth of the sector during
the same period.
United Arab Emirates is the second largest employer
in the chemicals sector with more than 38 000
employees which represents 27% of regions total.
Employment in the GCC chemicals industry, thousands people
Note: Includes employment in chemicals sector classifed under no.24, ISIC Rev.3
Source: National statistical authorities, UNIDO, GPCA, 2013
Empl oyment i n GCC
chemi cal s i ndust r y by
count r y
With the expansion of UAE chemicals sector over the
past years, the employment has grown by an average
15.4% per annum between 2008 and 2012.
Chemicals sectors in Qatar employed more than
9,600 employees in 2012 and accounted for 7%
of regions total workforce in the sector. With the
chemicals sector expansion in this state, employment
has doubled since 2008 when Qatar employed around
4 400 people.
Oman and Kuwait have similar level of employment in
the chemicals sector. In 2012, each of these countries
employed more than 6,000 people. . While both
Oman and Kuwait have seen an upward trend in their
countrys employment level, Oman has grown faster.
Between 2008 and 2012, employment growth in Oman
was 15.7% per annum while in Kuwait it was 5.7% per
annum.
Bahrain is a minor producer in the region and therefore
its employment in chemicals sector accounts for minor
share of 1% in regions total employment with modest
employment growth of 2.6% per annum between 2008
and 2012.
47.5
50.2
54.1
58.8
76.5
21.5
26.0
31.5
38.1
38.1
4.4
5.5
5.1
7.0
9.6
3.5
4.2
4.8
5.5
6.3
4.9
5.4
5.5
5.8
6.2
1.8
2.0
1.9
1.9
2.0
83.6
93.2
102.9
117.2
138.7
0
20
40
60
80
100
120
140
160
2008 2009 2010 2011 2012
E
m
p
l
o
y
m
e
n
t

(
T
h
o
u
s
a
n
d
s
)
CAGR (2008-2012)
13.5%
How many j obs
depend on t he
chemi cal s i ndust r y?
The chemicals industry creates jobs not only within
the industry itself but also generates employment
indirectly. Such indirectly generated jobs can also be
found in chemicals processing and manufacturing
goods. Chemicals companies spend on equipment,
maintenance, food and other services from local
and foreign contractors and suppliers. All of the
industries that create these indirect jobs are known
as multipliers. Generally the amount of indirect
employment generated by chemicals industry exceeds
its direct employment.
Total Chemicals Related Employment in 2012 (thousands people)
Source: National statistical authorities, GPCA Estimates, 2013
In the GCC direct chemicals industrys employment in
2012 reached 138.7 thousand people. However, total
employment related to the chemicals industry (direct
and indirect jobs) is estimated at around 555 thousand
people.
138.7
416.1 554.7
Direct Employment Indirect Employment Total Chemicals Related
Employment
Total employment related to the
chemicals industry is estimated at
around 555 thousand people.
Based on estimations of International Labor
Organization there are about 20 million people
employed in the global chemical, pharmaceutical and
rubber and tire industries. Employment in the global
production of chemicals (excluding pharmaceuticals,
plastics and rubber processing) is estimated at 7 to 8
million people. Employment in GCC chemicals industry
accounted for 2% of worlds total in 2012 This rank the
GCC 9th among countries employing more than 50
thousands employees in the chemicals industry.
Top Employers in Chemicals Industry 2012 (thousands)
Note: Chemicals excluding pharmaceuticals, Countries and regions with more than 50 thousands of employees
Source: CEFIC, GPCA, 2013
Chemi cal s I ndust r y s
empl oyment :
GCC vs. Gl obal
China is the largest employer within the global
chemicals industry, employing more than 2.3 million
people in 2012 combined with one of the highest
average employment growth between 2008 and 2012
of 6.3% per annum.
51
60
60
61
72
75
89
121
122
135
136.6
140.7
173
214
270
400
513
605
1'189
2'334
Canada
Egypt
South Africa
Turkey
Iran
Malaysia
Vietnam
South Korea
Ukraine
Mexico
Thailand
GCC
Indonesia
Japan
Brazil
Russia
United States
India
European Union
China
Empl oyment Gr owt h
i n t he Chemi cal s
I ndust r y
Employment Growth in Chemicals Industry of Selected Economies, CAGR (2008-2012)
Note: Chemicals excluding pharmaceuticals, Countries and regions with more than 50 thousands of employees
Source: CEFIC, GPCA, 2013
-2.0
-0.8
-0.6
0.0
-0.3
-2.6
0.0
0.1
0.2
0.4
1.0
1.1
1.9
2.2
2.7
3.1
3.6
4.9
6.3
13.5
Russia
Canada
Iran
South Africa
Egypt
Brazil
Thailand
India
Ukraine
South Korea
Malaysia
Turkey
Vietnam
Indonesia
China
GCC
Japan
United States
European Union
Mexico
Manufacturing includes a range of activities in
addition to production. Manufacturing companies
increasingly employ workers in non-production jobs
which consist of service related occupations. Service
activities such as R&D, marketing and sales, customer
support and administration account for a large share
manufacturing company activities. Around 36% of
GCC chemicals employment is related to services.
Growing manufacturing industry in the region supports
local service related industries such as telecom, travel,
logistics providers, banks and IT services.
GCC Chemicals employment by occupation type, 2012 (Thousands)
Note: Manufacturing type occupations refer to early stages of manufacturing. Service occupations include R&D, sales, marketing, services,
administrative support and management
Source: GPCA Estimates based on questionnaire, 2013
Empl oyment i n GCC
by occupat i on
89.8
(64%)
50.9
(36%)
140.7
(100%)
Manufacturing type Service type Total
69%
69%
66%
55%
55%
51%
31%
31%
34%
45%
45%
49%
Kuwait
Saudi Arabia
Qatar
UAE
Oman
Bahrain
Manufacturing type Service type
The occupational profle of the GCC chemicals
industry is similar to manufacturing. The majority
of the employees are involved in actual production
process. In 2012 manufacturing related personnel
accounted for 64% of total number of employees
which translate into 89 900 people. Within the service
type occupations, administrative support occupations
accounted for 18% of total employees in the chemicals
industry in 2012, followed by sales & marketing (4%)
and supply chain professionals (3%).

Empl oyment i n GCC
by occupat i on
GCC Chemicals employment by occupation, 2012
Source: GPCA Estimates based on questionnaire, 2013
89.8
(64%)
140.7
(100%)
25.6
(18%)
6.1
(4%)
3.9
(3%)
15.3
(11%)
0
20
40
60
80
100
120
140
160
E
m
p
l
o
y
m
e
n
t

(
T
h
o
u
s
a
n
d
s
)

Manufacturing Administration
Sales &
Marketing
Supply
Chain
Others Total
Manufacturing related personnel
accounted for 64% of employees in
the GCC chemicals industry.
The GCC Chemicals industry is part of the
manufacturing sector which is an important strategic
sector for GCC region. Employment represents part
of the social contribution of the industry to economy
and human capital. GCC chemicals industry is the
4th largest industry in terms of employment and it
employs 8% of the total manufacturing workforce.
GCC Manufacturing Employment, Top 5 Industries
Source: National statistical authorities, UNIDO, GPCA estimates, 2013
Empl oyment i n GCC
manuf act ur i ng and
While industry generates 31.3% of manufacturing
GDP, it represents 8% of the total number employed
in the manufacturing sector. Since 2004, employment
in the chemicals sector has more than doubled from
57,900 in 2004 to 140,700 in 2012. This is in line with
the overall growth of employment in the manufacturing
sector during the same period.
194 219 235
268 294
177
198
213
244
290 155
179
201
221
265
83.6
93.2
102.9
117.2
138.7
75
82
88
98
117
461
558
648
764
724
1'145
1'329
1'488
1'713
1'829
CAGR (2008-2012)
12.4%
0
200
400
600
800
1'000
1'200
1'400
1'600
1'800
2'000
2008 2009 2010 2011 2012
E
m
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o
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m
e
n
t

(
T
h
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a
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d
s
)

Fabricated metal products (ISIC 28) Non-metallic mineral products (ISIC 26) Food products & beverages (ISIC 15)
Chemicals & chemical products (ISIC 24) Rubber & plastic products (ISIC 25) Other Industries
GCC chemicals industry employs
8% of the total manufacturing
workforce.
Workforce nationalization is one of the growing
challenges in the GCC. Workforce nationalization in
the GCC chemicals industry was estimated at 34%
in 2012. In contrast, workforce nationalization among
GPCA members was 56% in the same year. GPCA
members cover the following industry segments:
Petrochemicals, Polymers and Basic Inorganics
(Fertilizers and Inorganic Chemicals) referred as
major segments in this section. Since these major
segments account for about 90% of the total chemicals
production in the GCC region, their workforce
nationalization rate can be taken as a proxy for the
chemicals industry. Looking at the details, we fnd
the following characteristics in the GCC industry of
chemistry:
More than half of employees in major industry
segments are national citizens: Figures for Oman,
Saudi Arabia, Bahrain and Kuwait show that more than
half of employees working in major chemcials industry
segments are national citizens. Notably, workforce
nationalization in Bahrain and Saudi Arabia in 2012
is the highest at 75% and 63% respectively. Kuwaiti
chemicals companies employment of nationals
GCC Workfroce nationalization in chemicals industry by country
Source: GPCA Questionnaire, National Statistical Authorities, 2013
Wor kf or ce nat i onal i zat i on
i n GCC chemi cal s i ndust r y
reached 61% of total workforce in 2012, followed by
Oman where workforce nationalization was 58% in
2012.
Chemicals industry in Saudi Arabia, Kuwait and
Qatar employ the largest number of nationals
than in other manufacturing sectors: The
chemicals industry in Qatar employs the largest
number of nationals than in other manufacturing
sectors approximately 1000 national citizens in
2012.This represented 45% of all the nationals in the
manufacturing sector in Qatar, followed by the refning
sector which employed 21%. There is a similar trend
in Saudi Arabia; approximately 36 500 nationals
employed in the chemicals industry represented
28% of all nationals working for companies in the
manufacturing sector. GPCA estimate that this is the
largest number among other manufacturing industries.
In Kuwait, 1500 of nationals employed in the chemicals
sector in 2012 represented 21% of all nationals in the
manufacturing sector. Kuwaits chemicals sector was
the second largest employer of nationals after refning
in 2012.

9%
10%
25%
34%
35%
48%
52%
UAE
Qatar
Kuwait
GCC
Bahrain
Saudi Arabia
Oman
GCC Chemicals industry, 2012
23%
19%
61%
56%
75%
63%
58%
UAE
Qatar
Kuwait
GCC
Bahrain
Saudi Arabia
Oman
GPCA Members, 2012
Productivity is commonly defned as a ratio of a
volume measure of output to a measure of input.
Employee productivity is particularly important
in the economic and statistical analysis as it
reveals a dynamic measure of economic growth,
competitiveness, and living standards within an
economy. Employee productivity (and all that it takes
into account) helps to explain the principal economic
foundations that are necessary for both economic
growth and social development. Employee productivity
depends on various issues including technological
advancements, enhanced effciency and innovation
as well as value of the output. Employee productivity
in the GCC chemicals industry has been growing at
an average annual growth rate of 3% between 2008
and 2012. In comparison, employee productivity in
the GCC manufacturing sector has declines by 2.7%
during the same period.
GCC Employee Productivity Index, Chemicals and Manufacturing (2007=100)
Source: UNIDO, Statistical Authorities, GPCA Estimates, 2013
Empl oyee pr oduct i vi t y
i n GCC chemi cal s
and manuf act ur i ng
sect or
Looking at the historic year-on-year growth of
employee productivity in chemicals and manufacturing
sectors, productivity in the chemicals sector was
growing at higher rate than the manufacturing
total except for 2012 when it is estimated that
manufacturing has outpaced chemicals sector due to
the growth in other sectors. In 2012 labor productivity
fell by 12% mostly due to the decline in prices of
chemical products which affected the value of the
chemicals sectors output in the region. At the same
time manufacturing sector productivity has increased
by 2.7% year-on-year in 2012.
121.9
93.8
0
20
40
60
80
100
120
140
160
2007 2008 2009 2010 2011 2012
Chemicals & Chemical products Manufacturing
121 9
Sal es Revenue
( 2012)
12.
12. Sales Revenue (2012)
Chemicals industry sales revenue is reported by the
GPCA member companies and covers the following
business segments: Petrochemicals (including basic
petrochemicals, intermediates, downstream chemicals,
polymers, fertilizers and inorganic chemicals. This
includes sales of goods produced by the business
only. Current fgures do not include sales revenue
of producers of Industrial Gases, various Specialty
Chemicals and Consumer Chemicals.
In 2012, the industry reported US$81.7 billion in sales
revenue. While this is similar to the last year`s fgures
there have been several country-wise adjustments. In
most of the GCC countries sales revenue declined in
2012 when compared to 2011. However, due to the
new production capacity coming on stream in 2012,
chemicals industrys sales revenue has increased in
Qatar and the UAE. In Qatar it grew by 4.6% reaching
$US 10.3 billion and in the UAE by 17.7% reaching
GCC Chemicals Sales Revenue by Country
Note: Doesnt include sales revenue of Industrial Gases, various Specialty Chemicals, Consumer Chemicals and Pharmaceuticals
Source: Gulf Petrochemicals and Chemicals Association, 2013
GCC chemi cal s
i ndust r y sal es
r evenue
$US 3 billion. As a result of this increase Qatars share
in the regional industrys sales revenue has increased
from 12% in 2011 to 12.6% in 2012 and UAEs share
from 3.2% in 2011 to 3.8% in 2012.
Looking at the composition of sales revenue, the
majority is attributed to the sales of fne chemicals
which account for 45.4% of regions total in 2012,
followed by polymers which accounted for 22.1%.
While fne chemicals and polymers account for 38.6%
of GCC chemicals capacity, sales revenue from these
products reached US$55 billion which represents the
major share of 67.5% of regions total.
GCC sales revenue from fertilizer production business
in 2012 is estimated at $US6.6 billion which accounted
for 8.1% of GCCs total.
Saudi Arabia
75.2%
Saudi Arabia
74.8%
Bahrain
0.6%
UAE
3.2%
Kuwait
4.2%
Oman
4.8%
Qatar
12.0%
Bahrain
0.6%
UAE
3.8%
Kuwait
4.0%
Oman
4.2%
Qatar
12.6%
2011
$US 81.7
billion
2012
$US 81.7
billion
GCC chemi cal s
i ndust r y sal es
r evenue
GCC Chemicals Sales Revenue by Segment, 2012
Total: $US 81.7 bn
Source: Gulf Petrochemicals and Chemicals Association, 2013
Others
3.2%
Polyolefins
6.4%
Performance Chemicals
1.0%
Basic Chemicals
6.7%
Chemicals
45.4%
Polymers
22.1%
Fertilizers
8.1%
Innovative Plastics
7.1%
Chemicals represent the majority of
GCC sales revenue or 45.4%
In 2012, GCC chemicals industry
reported US$81.7 billion in sales
revenue
Shar e of GCC i n
Gl obal Chemi cal s
Sal es Revenues
2012 was a challenging year for the chemicals industry
worldwide. Margins were lower especially for the
chemicals producers from oil-based feedstock. Basic
chemicals producers were able to maintain their
sales position due the production expansion and high
demand from industrial sectors. For other companies,
continuous push towards production of fne chemicals
and specialties has provided opportunities to retain
sales positions last year. Based on Cefc Facts and
Figures, global chemicals and pharmaceuticals sales
grew year-on-year by 4.2% in 2012, down from 17.2%
in 2011. Global chemicals and pharmaceuticals sales
in 2012 reached $US 4,017 billion. The growth in 2012
was mainly driven by Asia and China in particular.
While China continued to be a major importer of
chemicals, it is at the same time one of the largest
producers globally. Chemicals sales of Chinese
producers reached $US 1,223.7 billion in 2012 which
accounted for 30.5% of worlds total. Chinas Sinopec,
Global Chemicals sales, $US billion Global Chemicals sales 2012
Total: $US 4,017 billion
Source: Cefc Facts and Figures and GPCA Analysis (2013)
for instance, is ranked the second largest chemical
company by ICIS in term of sales revenues in 2012
with $US 64,894 million.
In all other regions, chemicals sales revenues saw
a decline in 2012. The highest year-on-year decline
of 4.3% was observed in Europe where political
and eurozone crises were felt by the chemicals
producers. Total chemicals sales revenues in Europe
are estimated at $US 864.6 billion which accounts for
21.5% of worlds total. As per ICISs ranking, among
top 10 largest chemical companies 4 are European:
Europes BASF is the largest chemicals company in
the world with $US 95.100 million in sale revenues,
followed by Shell ranked 6th, Lyondell Basell Industries
ranked 7th and INEOS ranked 10th.
3'199.9
3'857.7
4'017.8
2010 2011 2012
Rest of the World 1.9%
GCC 2.0%
NAFTA 16.8%
Latin America 4.6%
China 30.5%
Asia (Excl China and GCC) 22.7%
Europe 21.5%
Shar e of GCC i n
Gl obal Chemi cal s
Sal es Revenues
Global chemical sales, $US billion
Source: Cefc Facts and Figures and GPCA Analysis (2013)
While North America remains the leading region in
global chemicals production, growth of sales revenues
in 2012 was modest 1%, down from 10.4% in 2011.
North American, ExxonMobil is 3rd top chemical
company worldwide, followed by Dow Chemicals
ranked 4th and DuPont ranked 8th.
Sales revenues of producers in the GCC represented
2% of the global chemicals sales revenues in 2012.
Saudi Arabias Sabic was ranked by ICIS the 4th
largest chemicals company in the world in 2012.
US$ billion 2011 2012 2012 Sales Growth
China 1043.5 1223.8 17.3%
Asia (excluding China and GCC) 895.8 910.4 1.6%
Europe 903.5 864.6 -4.3%
NAFTA 669.0 675.6 1.0%
Latin America 188.9 185.6 -1.8%
GCC 81.7 81.7 0.0%
Rest of the world 75.3 76.3 1.4%
World 3857.7 4017.8 4.2%
12. Sales Revenue (2012) 10. GCC Intra-Regional Trade (2012)
Research and
Devel opment ( 2011)
13.
13. Research and Development (2011)
The chemicals industry is a business based on
science, technology and knowledge. It plays a key
role in the entire economy through its enabling
function. Through advancements in innovation and
technology, the chemicals industry transfers benefts to
downstream industries. Many of the challenges faced
by the society and industries can be solved through
innovative breakthroughs in the chemistry. This means
that the industry is an initiator and provider of solutions
to problems, cost reductions and better productivity
and improved product quality.
WorIwide Patent Grants in the eId of Chemistry
Source: World Intellectual Property Organization (WIPO)
New pat ent s i n t he f i el d
of chemi st r y wor l dwi de
and GCC
A key innovation indicators is the annual number
of patents granted. Globally, chemicals industry
is granted between 150,000 and 200,000 patents
annually and on average there is 7.4% growth per
year. This is approximately 20% to 22% of the total
number of patents granted in all sectors.
125'299
142'005
146'104 145'173
149'116
167'428
192'235
2005 2006 2007 2008 2009 2010 2011
Chemical Engineering
10.2%
Materials, Metallurgy
10.9%
Organic Fine Chemistry
12.5%
Pharmaceutical
15.4%
Nano-technology
0.8%
Environmental Technology
6.9%
Food Chemistry
7.5%
Macromolecular Chemistry,
Polymers
8.2%
Biotechnology
8.4%
Surface Technology, Coating
9.1%
Food Chemistry
10.1%
CAGR (2005-2011)
7.4%
2011
192,235
New pat ent s i n t he f i el d
of chemi st r y wor l dwi de
and GCC
As reported by World Intellectual Property
Organization, granted patents in the feld of chemistry
to applicants originated from the GCC and issued by
the IP offces outside the region reached 155 in 2011.
This does not include patents issued by the GCC
Patient Offce (GCCPO).
GCC Patent Grants in the eId of Chemistry
GCC Patent Grants in the eId of Chemistry
Note: Based on known patents granted to GPCA members
Note: Based on known patents granted with applicant`s origin in the GCC, doesn`t include patents issued by GCC patent offce
Number of chemical-related patents reported by GPCA
members granted in the past three years is between
550 and 750. When compared with the total number
of patents issued worldwide in the corresponding
years, GCC accounts for 0.4% of the chemistry patent
granted.

562
540
733
2010 2011 2012
35
60 59
35
116
137
155
2005 2006 2007 2008 2009 2010 2011
CAGR (2005-2011)
28.1%
Basic Materials Chemistry
19.4%
27.7%
Others
11.6%
Pharmaceuticals
8.4%
18.7%
Polymers
14.2%
2011
155
New patent appIications in the eId of chemistry worIdwide
New pat ent appl i cat i ons
i n t he f i el d of chemi st r y
wor l dwi de and GCC
331'085
317'751
327'026
335'157
343'369
324'082
315'527
2005 2006 2007 2008 2009 2010 2011
9.1%
8.5%
14.0%
Pharmaceutical
17.1%
Nano-technology
0.7%
6.0%
Food Chemistry
6.3%
Polymers
7.5%
Biotechnology
10.0%
Basic Materials Chemistry
10.8%
Surface Technology,
Coating
8.2%
2011
315,527
For the frst time in 2011, the total number of patent
applications fled worldwide exceeded the 2 million
mark. The 2.14 million applications fled consisted of
1.36 million resident and 0.78 million non-resident
applications. In contrast, patent applications in the
feld of chemistry are steadily declining since 2009
when a record number of 343,369 were fled. By 2011,
this number has dropped to 315,527 out of which top 5
segments were pharmaceuticals which accounted for
17.1%, followed by the organic fne chemistry (13%),
basic materials chemistry (10.9%), biotechnology
(10.6%) and chemical engineering (9.4%).
As reported by World Intellectual Property
Organization, patent applications in the feld of
chemistry fled by the GCC companies reached 274 in
2011 which represented 0.1% of worldwide chemistry
related patent applications. Most of these patent
applications were fled in the United States of America
(138 patent applications), Europe (55 applications),
China (23 applications), Japan (14 applications).
Current statistics doesnt include patents issued by the
GCC Patient Offce (GCCPO). While GCC represented
relatively low share in worldwide total, growth of
chemistry related patent applications grew signifcantly
over the past decade. Between 2001 and 2011, GCC
patent applications grew by an average 19.5% per
annum.
New pat ent appl i cat i ons
i n t he f i el d of chemi st r y
wor l dwi de and GCC
New patent appIications in the eId of chemistry, GCC
Note: Based on known patents applications with applicants origin in the GCC
46
54
63
77
99
128
173
210
238
281
274
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
21.0%
6.1%
21.7%
Pharmaceutical
5.9%
Biotechnology
3.4%
8.0%
Macromolecular
Chemistry,Polymers
13.5%
Basic Materials
Chemistry
17.8%
Surface Technology Coating
2.1%
CAGR (2005-2011)
19.5%
2005-2011
1,403
patent
applications
World R&D Spending in Chemicals Industry
(2008-2012) $US billion
2012 World R&D Spending in Chemicals
Industry, $US49 bn
R&D spendi ng
35.8
35.1
40.3
44.4
49.0
2008 2009 2010 2011 2012
CAGR (2008-2012)
8.1%
19.3%
China
Japan
Korea Republic 4.4%
India 2.7%
Switzerland 0.9%
Australia 0.8%
EU-27
24.8%
Rest of the World
2.7%
Taiwan
0.7%
GCC
0.8%
USA
22.0%
20.9%
Note: Chemicals excluding pharmaceuticals
Source: CEFIC, 2013
Note: Chemicals excluding pharmaceuticals
Source: CEFIC, 2013
World R&D Spending in Chemicals Industry ($US million) 2012
EU-27 12,140.9
USA 10,763.5
China 10,229.0
Japan 9,427.2
Korea, Republic 2,177.0
India 1,326.9
Switzerland 463.8
Australia 397.4
GCC 380.0
Taiwan 325.9
Rest of world 1,320.7
World 48,952.4
Worldwide R&D spending among companies in the
chemicals sector has reached $US49 billion in 2012
which is an increase of 10% in comparison with the
previous year. Companies in European Union and
United States accounted for almost a half of worlds
R&D spending in 2012 or $US22.9 billion.
Acknowl edgement s
GPCA secretariat extends thanks and appreciation for
the following members for their close cooperation in
sharing the data used to develop this publication:
Abu Dhabi National Chemicals Company
(ChemaWEyaat)
Abu Dhabi Polymers Co. Ltd. (Borouge)
Advanced Petrochemical Company
CHEMANOL
EQUATE Petrochemical Company
Farabi Petrochemicals Company
Gulf Petrochemical Industries Company (GPIC)
NAMA Chemicals
National Industrialization Company (TASNEE)
National Petrochemical Industrial Company (NATPET)
Oman Oil Refneries and Petroleum Industries
Company (ORPIC)
Petrochemical Industries Company (PIC)
Qatar Chemical Co. Ltd. (Q-Chem)
Qatar Fertilizer Co. (QAFCO)
QATAR FUEL ADDITIVES CO.LTD. (QAFAC)
Qatar Petrochemicals Company Ltd. (QAPCO)
Rabigh Refning & Petrochemical (PETRO RABIGH)
Ruwais Fertilizer Industries (FERTIL)
Sadara Chemical Company
Salalah Methanol Co.
Saudi Arabian Mining Company (Maaden)
Saudi Basic Industries Corporation (SABIC)
Saudi International Petrochemical Company
(SIPCHEM)
S-Chem

I References
Throughout the report we sourced data from the
following national and international statistical
department and organizations:
American Chemistry Council (ACC)
Bahrain Central Informatics Organization
European Chemical Industry Council (CEFIC)
ICIS
International Fertilizer Association (IFA)
Kuwait Central Statistics Center
Kuwait Customs Department
Methanol Market Services Asia (MMSA)
Oman National Center for Statistics and Information
Qatar Statistical Authority
Saudi Arabia Central Department of Statistics and
Information
Saudi Arabia Customs Department
Statistics Center Abu Dhabi
UAE Customs Department
UAE National Bureau of Statistics
United Nations Industrial Development Organization
(UNIDO)
UN Statistics Division
World Trade Organization (WTO)
I Special thanks
Special thanks for industry experts who have given
their time and expertise to complete this report
Dr. Moncef Hadhri, Chief Economist and Manager,
European Chemical Industry Council (CEFIC)
Dr. Thomas Kevin Swift, Chief Economist and
Managing Director, American Chemistry Council (ACC)
Shyam Upadhyaya, Chief Statistician, UNIDO
Valentin Todorov, Information Management
UNIDO
Floris Landi, Graphic Designer,
I Feedback
For more information and feedback on this report,
please contact:
Nora Ismagilova, Research and Studied
nora@gpca.org.ae
Disclaimer
The data, analysis and other information contained in the annual
report GCC Petrochemicals & Chemicals Industry Facts and
Figures is for informational purposes only and is not intended
to provide any business, fnance and investment advice. Whilst
reasonable efforts were made to ensure the accuracy of the
report, Gulf Petrochemicals and Chemicals Association (GPCA)
makes no warranties and assumes no liability or responsibility for
any inaccuracy, error, or for any loss or damage in regards with
or attributed to any action or decision taken as a result of using
information from the current report.
GCC Petrochemicals & Chemicals Industry Facts and Figures
may contain references to material from third parties and whose
copyright must be acknowledged.
All rights of the publication shall be reserved to the Gulf
Petrochemicals and Chemicals Association (GPCA), including
right to publish it by press or other communication, translate,
include in a database, make changes, transform and process
via any kind of use. Full reproduction, copying or transmission of
information from the report is not permitted without the GPCAs
written permission; however the information may be used for
educational and non-commercial purposes provided that GPCA is
fully acknowledged as the copyright holder.
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website: www.gpca.org.ae

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