UAE’s Chemical Bet Fuels a Self-Reliant Gulf

AquaChemie’s AED 100 million deal drives local chemical production and GCC energy independence

3 Nov 2025

AquaChemie’s acquisition of Global Chemical Company, announced on May 20, 2025, marks a strategic step in the United Arab Emirates’ push toward industrial self-sufficiency. The deal, valued at about AED 100 million ($27 million), grants the Dubai-based firm full ownership of a manufacturing facility in Abu Dhabi’s Industrial City, strengthening the Gulf Cooperation Council’s capacity to produce essential oilfield chemicals.

The facility includes the region’s only in-situ sulfur trioxide manufacturing and sulphonation plant, enabling the local production of surfactants, corrosion inhibitors, and demulsifiers, materials once largely imported. Company executives said the expansion underscores AquaChemie’s goal of establishing a resilient chemical ecosystem to support the Gulf’s energy infrastructure.

“This acquisition marks a pivotal step toward chemical self-sufficiency for the region,” said V. Anandkumar, AquaChemie’s chief executive and managing director. “Our goal is to strengthen the local supply chain while offering faster, more customized solutions to energy operators across the GCC.”

The initiative aligns with the UAE’s “Make it in the Emirates” program, a national effort to expand domestic manufacturing and reduce reliance on overseas suppliers. Industry analysts said localizing production could help energy operators reduce turnaround times, lower logistics costs, and improve flexibility in adapting formulations to the region’s demanding field conditions.

Still, challenges persist. Ensuring a steady supply of high-quality raw materials and meeting strict environmental regulations will test the company’s ability to scale responsibly. “The key test will be scaling sustainably while preserving quality and compliance,” noted one regional energy consultant.

Even with these hurdles, the acquisition reflects a broader shift in the Gulf toward localization and innovation in the energy sector. As global energy markets evolve, the GCC’s growing chemical capabilities are likely to strengthen its industrial base, positioning the region not only as a source of fuel but also as a producer of the advanced materials that sustain modern energy systems.