United Arab Emirates Petrochemicals Report

Published 12 August 2015

  • 79 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
$1,295.00
United Arab Emirates Petrochemicals Report

The UAE petrochemicals industry is facing a squeeze on margins as product prices have declined amid over-supply on external markets. The situation will be exacerbated by increase capacity in the Arabian Gulf region with Emirati producers set to raise output at the same time as sanctions are l ifted on Iran, which will lead to a flood of Iranian polymer on the Asian markets from 2016.

The dominant ethane feedstock in the UAE market has declined in competitiveness as a result of lower naphtha costs, which have been driven down by falling crude prices. This has benefited the UAE's more naphtha-reliant competitors, particularly in Asia, its main export market. At the same time, slackening demand in export markets has weakened product prices.

In these unfavourable market trends, the opening of the Borouge 3 petrochemicals facility in 2014 has come at an inopportune time for Emirati petrochemicals producers. The Borouge 3 complex includes one of the world's largest cracker units with 1.5mn tonnes per annum (tpa) of ethylene production capacity feeding downstream units producing 1.4mntpa of polyethylene and 960,000tpa of polypropylene. Added to this is the planned Chemaweyaat complex, which the emirate hopes will be the world's largest petrochemical complex.

  • The Chemaweyaat's complex will come into operation in 2016, including an olefins plant, an aromatics complex and a range of downstream polymer and chemical units. The first part of the development, Tacaamol, will use heavy naphtha feed for aromatics units and a lighter naphtha feed for a 1.5mntpa mixed feed cracker. By 2016, BMI expects ethylene capacity of 5mntpa in the UAE, up from 2mntpa in 2013, with PE more than tripling to 3.52mntpa and PP rising by nearly 170% to 2.14mntpa over the period.

  • The availability of naphtha in the UAE is being boosted by refinery expansion at Ruwais, helping to retain the Emirati industry's competitive edge and enabling it to produce a wider range of products. The cheaper...

BMI Industry View
7
SWOT
8
Political
10
Economic
11
Operational Risk
12
Industry Forecast
14
Table: UAE's Petrochemicals Projects
17
Table: UAE's Petrochemicals Sector - Capacity, 2011-2019 ('000 tpa)
18
Macroeconomic Forecast
19
Private Spending Growth To Remain High
20
Modest Growth For Oil Sector
22
Table: Economic Activity (United Arab Emirates 2010-2019)
23
Table: GDP By Expenditure (United Arab Emirates 2012-2019)
23
Industry Risk/Reward Index
25
MEA Petrochemicals Risk/Reward Index
25
Table: MEA Petrochemicals Risk/Reward Index - Q4 2015
29
UAE Petrochemicals Risk/Reward Index
30
Market Overview
32
Table: The UAE's Petrochemicals Sector - Cracker Capacity, 2012-2019 ('000 tpa)
33
Industry Trends And Developments
34
Abu Dhabi
35
Dubai And The Northern Emirates
37
Fertiliser
38
Overseas Investment
38
Developments In Related Industries
39
Table: Major UAE Oil And Gas Concessions
41
Company Profile
43
Abu Dhabi National Oil Company (ADNOC)
43
Abu Dhabi Polymers (Borouge)
48
Regional Overview
51
Middle East And Africa Overview
51
Feedstock Pricing Concerns
52
Tightening Ethane Supplies
53
Diversification Is The Long-Term Focus
55
Africa Falls Behind
56
Global Industry Overview
58
Could US Gas Run out-
60
Project Curtailments
62
Medium-term Outlook
63
Global - Crude Oil, Refined Fuels And Natural Gas Prices, 10-Year Forecasts
66
Table: Energy Price Forecasts (Global 2013-2018)
66
Table: Energy Price Forecasts (Global 2019-2024)
67
Demographic Forecast
69
Demographic Outlook
69
Table: Population Headline Indicators (United Arab Emirates 1990-2025)
70
Table: Key Population Ratios (United Arab Emirates 1990-2025)
70
Table: Urban/Rural Population & Life Expectancy (United Arab Emirates 1990-2025)
71
Table: Population By Age Group (United Arab Emirates 1990-2025)
71
Table: Population By Age Group % (United Arab Emirates 1990-2025)
72
Glossary
74
Table: Glossary Of Petrochemicals Terms
74
Methodology
75
Industry Forecast Methodology
75
Risk/Reward Index Methodology
77
Table: Petrochemicals Risk/Reward Index Indicators
78
Table: Weighting Of Indicators
79

The United Arab Emirates Petrochemicals Report has been researched at source, and features BMI Research's market assessment and independent forecasts for key petrochemicals sub-sectors. The report also analyses the impact of regulatory changes, recent developments and the background macroeconomic outlook and features competitive landscapes comparing companies by products and services, sales, market share, investments, projects, partners and expansion strategies.

BMI's United Arab Emirates Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Emirati petrochemicals industry.

Key Benefits

  • Benchmark BMI's independent petrochemicals industry forecasts to test other views - a key input for successful budgetary and planning in the Emirati petrochemicals market.
  • Target business opportunities and risks in the Emirati petrochemicals sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in United Arab Emirates.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis, covering the petrochemicals markets, regulatory changes, major investments, projects and company developments.

Industry SWOT Analysis

Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the petrochemicals sector and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (2009-2013) and forecasts to end-2019 for key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:

  • Energy: Oil production (‘000 b/d), oil consumption (‘000 b/d), net oil exports (‘000 b/d), gas production (bcm), gas consumption (bcm), net gas exports (bcm), oil refinery capacity (‘000 b/d).
  • Petrochemicals: Ethylene capacity (‘000 tpa), ethylene production (‘000 tpa), ethylene consumption (‘000 tpa), polyethylene capacity (‘000 tpa), polypropylene capacity (‘000 tpa), polyvinyl chloride capacity (‘000 tpa), polyolefins consumption (‘000 tpa).
  • Oil Products Prices: Price forecasts for all major oil-based products (USD/bbl) at major global energy trading hubs.
  • Economic: Nominal GDP (USDbn), real GDP growth (%), GDP per capita (USD), population (mn), unemployment (%), exchange rate (against USD).

BMI’s Petrochemicals Risk Reward Index

BMI’s Risk Reward Indices provide investors (both corporate and financial) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.

Market Overview

Structure, size and value of the industry sector; overview of the industry landscape and key players; assessment of the business operating environment and the latest regulatory developments.

Industry Trends & Developments

Evaluation of company and sector-wide developments, including key projects (as well as expansion plans), latest company financial details and proposed international ventures.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Global & Regional Market Overview

Analysis of the key trends driving the global industry, including worldwide output/capacity and demand analysis across ethylene, polyethylene, polyvinyl chloride, polystyrene, polyethylene terephthalate and polypropylene. The regional analysis looks at the implications of local and global trends on specific company activity.

Sub-sectors covered by the Petrochemicals Reports include:

Oil & Gas, Oil Refining, Olefins (ethylene, propylene), Polyolefins (polyethylene, polypropylene), Polyvinyl Chloride, Polystyrene

Please note – not all country Reports cover all sub-sectors – see website for details.

Sources

The Petrochemicals Market Reports are based on a network of primary sources, such as multilateral organisations (ACC, APLA, Cefi c, ICCA, ICMA), national chambers of commerce and industry, national statistical offi ces, government ministries and central banks, and multinational companies.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

secure
Benefit from discounts when you add multiple products to your basket
2 Products SAVE 10%
3 Products SAVE 15%
4 Products SAVE 20%
5 Products SAVE 25%
6 Products SAVE 30%
7 - 20 Products SAVE 35%
21 Products or more SAVE 40%