Amman - The Arab Investment and Export Credit Guarantee Corporation (Dhaman) revealed that the chemical materials sector in Arab countries attracted 461 projects implemented by 313 foreign and Arab companies, with an investment cost exceeding $163 billion from 2003 to 2024.
اضافة اعلان
According to the corporation's second sectoral report on petrochemicals and chemicals in Arab countries for 2024, issued Wednesday from its headquarters in Kuwait, five Arab countries the UAE, Saudi Arabia, Egypt, Morocco, and Qatar secured 352 projects, accounting for 76 percent of the total, with investments surpassing $120 billion, creating around 69,000 jobs.
The report focused on four main areas: the development and future of petrochemical production capacity until 2028, foreign trade in chemicals, foreign projects, and an assessment of investment risks and business opportunities in the sector. It noted that the United States led investments in the Arab chemicals sector, with 85 projects representing 18 percent of total investments and a value of $56 billion.
The report, obtained by the Jordan News Agency (Petra), highlighted that the top ten companies accounted for around 15 percent of new projects, 42.5 percent of capital cost, and 32.2 percent of new jobs. From the United States, Dow Chemical Company led in project numbers and investment costs, with 11 projects valued at over $23 billion, making up 41.1 percent of total investments. Chevron Phillips Chemical Group topped in job creation, generating more than 6,000 jobs.
Regarding investment risks and incentives in six Arab countries, the report used two main indicators country and industry risks, and country and industry incentives. Saudi Arabia ranked as the top Arab country in terms of low risk and high incentives for investment, followed by the UAE, Kuwait, Qatar, and Egypt, with Algeria ranking last.
The report projected a slight increase in the Arab region’s petrochemical production capacity to 167.4 million tons per year in 2024, making up 12.1 percent of global capacity, with expectations of a 30.7 percent increase to 219 million tons per year by 2028.
Ethylene production capacity in the Arab region is expected to remain steady at 27.3 million tons per year in 2024, representing 12 percent of global production, with a projected increase of 57 percent to 43 million tons per year by 2028. Propylene production capacity is expected to stabilize at 7.8 million tons per year this year, accounting for 10.5 percent of global capacity, with a 54 percent increase to 12 million tons per year anticipated by 2028.
In terms of foreign trade, the report showed a 6 percent decline in the value of Arab chemicals trade to $258 billion in 2023, with exports down by 10 percent and imports down by 1.2 percent. China emerged as the largest exporter of chemicals to the Arab region, with exports valued at $14.4 billion, accounting for 12.1 percent of the region’s total imports, while also topping the list of importers, with a 14.2 percent share of the region’s exports at $20 billion.
Plastic products led Arab chemical exports in 2023, valued at $54 billion, making up 38.5 percent of total exports, while medical and pharmaceutical products were the top imports, valued at $31 billion and accounting for 25.8 percent of total imports.
Dhaman, established in 1974 and headquartered in Kuwait, is a joint Arab entity owned by Arab countries and four Arab financial institutions. It is the world’s first multilateral investment insurance organization and has been rated (+A) with a stable outlook by Standard & Poor’s (S&P).
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