Can Tech and Trade Revive Middle East Chemicals?

Saudi and UAE projects merge tech and trade to reshape the region’s chemicals future

24 Oct 2025

The Middle East’s chemicals industry is entering a pivotal stage as Saudi Arabia and the United Arab Emirates move to modernize production and expand global reach through major new initiatives. Recent agreements in both countries, focused on crude-to-chemicals innovation and export infrastructure, signal an acceleration of investment in technology and industrial capacity.

In Saudi Arabia, the national oil company has partnered with Honeywell and King Abdullah University of Science and Technology to develop a direct crude-to-chemicals process. The technology aims to convert crude oil into light olefins and other key feedstocks, reducing capital and operating costs while improving carbon and energy efficiency. Company officials said the project supports the kingdom’s diversification strategy by integrating upstream and downstream operations more closely.

Across the Gulf, the United Arab Emirates is advancing plans for its first dedicated chemicals port at Al Ruwais under a 50-year agreement between a national energy logistics firm and the TA’ZIZ industrial zone. The US$300 million facility, scheduled for completion by late 2026, is projected to handle up to 4.7 million tonnes of exports annually by 2028 and to generate more than US$1.3 billion in revenue over its first 27 years. Executives described the project as a cornerstone for expanding the UAE’s role in global chemicals trade.

Analysts said the two ventures reflect broader regional ambitions to move beyond raw hydrocarbon exports toward higher-value, technology-driven industries. By pairing advanced conversion processes with improved logistics networks, both nations aim to secure a stronger position in an increasingly competitive global chemicals market.

Though still in development, the projects underscore how Gulf producers are adapting to shifting demand and climate pressures. Their success could help redefine the Middle East’s industrial economy and shape its participation in the global energy transition in the years ahead.