Chemicals Come Home to the Gulf

Nouryon bets on Saudi Arabia’s industrial growth with local oilfield chemical services

18 Feb 2025

In the oil hub of Al Dhahran, Nouryon, a Dutch chemicals firm, has opened a new office. The move puts the company closer to Saudi Arabia’s oilfields and shortens the distance between product and customer. It marks a wider shift towards more local supply chains in the Gulf.

The timing aligns neatly with Vision 2030, the Saudi government’s strategy to build local industries and cut import dependence. Chemicals used in oilfields are vital to energy production. By expanding locally, Nouryon is betting on Saudi Arabia’s industrial ambitions. The company also plans to hire mostly Saudi staff, helping efforts to create jobs and skills within the kingdom.

Shortening supply chains is central to the plan. Recent disruptions to global shipping have shown the risks of relying on distant suppliers. By setting up within the kingdom, Nouryon can deliver faster and tailor products more closely to the needs of local oil producers.

The firm’s strategy mirrors a broader trend. Multinationals are pouring more money into Gulf factories and offices, drawn by a mix of rising demand and favourable industrial policies. The result is a more resilient supply chain and fiercer competition for customers.

“This is about serving our customers faster and strengthening Saudi Arabia’s industrial capabilities,” said a senior Nouryon executive. Industry experts note challenges ahead, including the need to train workers and build up local suppliers. But many agree that long-term gains could outweigh the risks.

The direction of travel is clear. Gulf countries, led by Saudi Arabia, are speeding up industrial localisation. Early movers like Nouryon may find themselves well placed in a market where staying distant is an ever riskier strategy.