RATIONAL

Building on its existing capabilities in Basics and some Intermediate Chemicals, KSA is well positioned to further strengthen its position in the Specialty Chemicals sector by developing and building a sustainable position to become a global and regional leader. Specialty Chemicals represents an attractive opportunity for the Kingdom for two main reasons. The industry can contribute to increasing localization, not only within the Chemicals sub-sectors but also in adjacent industries (e.g., Building Materials, Food Processing, Pharmaceuticals). Specialty Chemicals has also a strong value-adding potential in terms of margins and employment creation; KSA could leverage the growth of Specialty Chemicals to attract talent and technologies.

Value Proposition

• The global Chemicals market is expected to grow at a 3.7% CAGR, doubling production volumes from 1,870 mn ton/year in 2020 to 3,867 mn ton/year by 2040.

• KSA’s Specialty Chemicals industry is expected to grow to 11.5 mn ton/year by 2035.

• Building on its existing capabilities in Basics and some Intermediate Chemicals, KSA is well positioned to further strengthen its position in the Specialty Chemicals sector by developing and building a sustainable position to become a global and regional leader.

Specialty Chemicals segment is expected to almost quintuple the annual growth in regional capacity through 2035.

• The global chemicals market is expected to grow at 3.7% CAGR, doubling production volumes from 1,870 Mn Ton/year to 3,867 Mn Ton/- year by 2040.
• Chemical sector is also expected to be a driver of demand for oil & gas, gaining share from all other segments, from ~13% in 2020 to ~31% in 2040.
• As oil demand continues to grow but is expected to peak by 2040, chemicals is becoming a most relevant area of focus for O&G countries and companies.

• The global chemicals market is expected to grow at 3.7% CAGR, doubling production volumes from 1,870 Mn Ton/year to 3,867 Mn Ton/- year by 2040.
• Chemical sector is also expected to be a driver of demand for oil & gas, gaining share from all other segments, from ~13% in 2020 to ~31% in 2040.
• As oil demand continues to grow but is expected to peak by 2040, chemicals is becoming a most relevant area of focus for O&G countries and companies.

KSA’s global share in chemicals volume is 4.7%, with a portfolio concentrated in basics and commodity derivatives produced with the gas crackers output.

Höhepunkte

• Growth is driven by Asia, with China alone owning almost half of the market size of global chemical sales by 2030.
• Market growth in value is higher than global production expansion (in value estimated at CAGR of 5.4%) given that portfolio is steering towards more innovative and higher value-added products.
• Global players must prepare to defend their home markets in downstream, but also to develop export platforms for intermediates and integrated downstream portfolios to better value capture and maintain market positions.