From Importer to Powerhouse: UAE’s Oilfield Pivot

Dubai group’s acquisition of Abu Dhabi plant aims to cut imports and strengthen regional energy supply chains.

26 May 2025

AquaChemie, a Dubai-based chemical company, has acquired Global Chemical Company in Abu Dhabi in a deal worth 100mn dirhams, a move designed to reduce the United Arab Emirates’ reliance on imported oilfield chemicals.

The transaction is aligned with the government’s “Make it in the Emirates” strategy, which aims to strengthen local manufacturing and create skilled employment opportunities.

As part of the acquisition, AquaChemie will take ownership of a 26,000 square metre production facility equipped with the Gulf region’s only SO₃ sulphonation unit. The unit is used to produce specialised chemicals critical for oilfield operations.

“This acquisition is a strategic leap in strengthening supply chain resilience while giving local producers quicker and tailored products,” said V Anandkumar, AquaChemie’s chief executive and managing director.

Industry observers noted that the UAE has traditionally imported more than half of its oilfield chemical requirements. By expanding domestic manufacturing capacity, AquaChemie aims to lower costs and speed up deliveries to producers in the UAE, Saudi Arabia and Qatar.

The plant will enable faster production cycles and more customised solutions for the regional energy sector, according to the company. While analysts acknowledge the challenges of expanding local output, they said the longer-term benefits include greater pricing control and improved supply chain efficiency.

AquaChemie’s acquisition comes as Gulf states seek to localise key industries to meet growing energy demands. The company’s investment is viewed as part of a broader regional trend towards industrial expansion, with UAE-based producers playing a larger role in supporting energy operations across the Middle East.