Riyadh, 27 June 2019 – SAGIA hosted a seminar at Chemspec Europe today to showcase the opportunities available to international investors in the Saudi chemicals industry. Held in Basel, Switzerland, Chemspec Europe is one of the leading international events in the sector.
Today’s seminar saw a presentation from SAGIA, alongside speakers from the Royal Commission for Jubail & Yanbu, Saudi Aramco, SABIC and Sadara.
Saudi is the 5th largest chemical production market in the world and accounts for 10 percent of total global output. It is also home to nine of the world’s ten largest chemicals firms – all of whom are looking at potential downstream partners.
Commenting on the event, Ahmad AlAbedi, Managing Director of Petrochemical, Oil and Gas Sector, SAGIA, said: “The chemicals sector is one of the most exciting in the country, having grown 8% over the past 7 years and is expected to double in size by 2030.
“Saudi Arabia offers excellent access to key global markets through its geographical location and an extensive logistics network. And as well as being close to major markets, Saudi Arabia also provides access to abundant raw materials and low costs – thanks to low feedstock prices, low utility expenses and customs duty exemptions.
“Today’s seminar provided an excellent opportunity for us to showcase the opportunities to a specialist audience and for investors to hear from leading figures in the Saudi chemicals industry.”
Reflecting international interest in the sector, INEOS, a leading UK chemicals firm, announced earlier this month that it had signed an agreement with Saudi Aramco and Total to build its first ever plants in the Middle East.
The three world-scale plants will produce the key building blocks for carbon fiber, engineering polymers and synthetic lubricants that are pivotal to economic growth in the region. Saudi Aramco and Total are preparing the construction of a $5bn petrochemical complex (Project Amiral) which will supply more than $4bn of downstream derivatives and specialty chemicals units; the three INEOS plants will be part of them.
Saudi Arabia has seen rapid growth in the number of investment licenses issued this year – the number of licenses issued in the first quarter of 2019 was 70% higher than that in the same period in 2018.