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GCC Petrochemicals & Chemicals Industry

Facts & Figures 2011


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GPCA at a glance

The Gulf Petrochemicals and Chemicals Association (GPCA) is the first trade association

of its kind in the Gulf region. And in six short years it has become the benchmark for

the regions industry as well as its voice to the rest of the world. It has established

powerful credentials and gained a tangible credibility and trustworthiness. Its burgeoning

membership is eloquent testimony to the positive role it plays in promoting the currentpriorities and issues prevailing in the petrochemical sector.

The eight visionary founding members who launched the concept in 2006 are SABIC and

TASNEE from Saudi Arabia, QAPCO and QVC from Qatar, PIC and Equate from Kuwait,

Borouge from Abu Dhabi, and GPIC from Bahrain.

Since then GPCAs membership base has been growing at the phenomenal rate of 23%

per annum. By the end of 2011, GPCAs full member companies, the regional producers

of petrochemical and chemicals, collectively represented as high as 95% of the total

Gulfs petrochemical output by volume, thus, placing GPCA in the unrivalled position ofbeing the industrial spokesperson on matters of importance.


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3.4 GCC Capacity Additions (2010-2011)

3.4.1 Capacity additions: breakdown by country 61

3.4.2 Capacity additions: breakdown by product group 62

3.4.3 Basic petrochemicals capacity growth (2007-2011) 63

4. GCC International Trade (2007-2011) 68

4.1 GCC production and export 70

4.2 GCC export by origin 73

4.3 GCC export by product groups 74

4.4 GCC export by destination 75

4.5 Detailed analysis of GCC exports by destination 76

4.6 GCC international trade surplus: 81

breakdown by destination

4.7 GCC international trade surplus: 82

breakdown by product

4.8 Share of chemicals in the worldwide exports of 83manufactured goods

4.9 Share of GCC in worldwide chemicals exports 84

4.10. Ranking of GCC countries in worldwide 86

chemicals exports

5. Employment (2010-2011) 87

5.1 Employment in GCC petrochemicals industry:

breakdown by country

5.2 Employment in GCC manufacturing and 89

petrochemicals industry

5.3 Workforce nationalization in GCC petrochemical 90

industry

6. Sales Revenue (2010-2011) 92

6.1 GCC Petrochemicals Industry Sales Revenue 94

by Country

6.2 Share of GCC in Worldwide Chemicals 95

Sales Revenues

7. Acknowledgements 96

Contents1. A Message from the Secretary General 4

2. GCC Macroeconomic Indicators 5

2. 1 Contribution of the petrochemical sector to 6regional and national GDP

2.2. Share of Petrochemicals in non-oil exports 13

on regional and national levels

3. GCC Petrochemicals Industry Profile 20

3.1 GCC Production Capacity by Product (2007-2011)

3.1.1 GCC Capacity: Breakdown by Product Groups 22

3.1.2 GCC Capacity: Breakdown by Value-chain 24

3.1.3 Basic Petrochemicals 26

3.1.4 Fertilizers 28

3.1.5 Polymers 30

3.1.6 Intermediates 31 3.1.7 Top 10 Products in GCC Petrochemicals 32

Capacity

3.1.8 Share of GCC top 10 Products in the 33

Worldwide Capacity

3.1.9. Global Ranking of GCC top 10 Products 43

3.2 GCC Production Capacity by Country (2007-2011)

3.2.1. GCC Production Capacity 44

3.2.2. Basic Petrochemicals: Breakdown by Country 46

3.2.3 Fertilizers: Breakdown by Country 48

3.2.4 Intermediates: Breakdown by Country 50

3.2.5 Polymers: Breakdown by Country 51

3.3 GCC Capacity Utilization (2010-2011)

3.3.1 Capacity Utilization by Country 52

3.3.2 Capacity Utilization by product group 53

3.3.3 Capacity Utilization by Value-chain 54

3.3.4 Basic Petrochemicals Capacity Utilization by Product 55

3.3.5 Polymers Capacity Utilization by Product 57

3.3.6 Fertilizers Capacity Utilization by Product 58

3.3.7 Worldwide Comparison of the GCC Capacity Utilization 59

3.3.8 Worldwide Comparison of the GCC Ethylene Capacity 60

Utilization


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Welcome to GPCAs first annual GCC Petrochemicals & Chemicals

Industry Facts and Figures report which focuses on the GCC

petrochemicals and chemicals industrys performance for the calendar

year of 2011.

This report provides an analysis of the historical growth and

developments in the GCC petrochemicals and chemicals industry

over the time span 2007-2011. Its scope covers capacity, production,

international trade, sales revenue, employment and workforce

nationalization. Further, the report sheds light on the growing global

position of the GCC petrochemicals industry reflected by the steadily

increasing production capacities and the resulting rising share of the

GCC producers in the global petrochemicals trade.

Undoubtedly this report would have not been possible without the

continued support from our member companies and stakeholders who

made available to GPCA key data and information used to preparethis publication. As an inaugural report, we acknowledge that certain

sections require further attention and elaboration. We are committed

to actively to further develop both the scope and content of future

releases of the report.

Finally, this publication demonstrates our commitment to provide

useful reference publications for industry players such as analysts,

researchers, policymakers and producers. Looking forward, GPCA

plans to continue investing in developing relevant industry content in

line with our objective to be the premier provider of industry knowledge

and services to our members and stakeholders.

Dr. Abdulwahab Al-Sadoun

Secretary General

A Message from the Secretary General


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GCC Macroeconomic Indicators2


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6 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

8.9%contribution of manufacturingsector to GCC GDP in 2011

17%contribution of petrochemicalsto the manufacturing sectors

share in 2011 GDP

7.5%year-on-year growth of RealGDP in the GCC in 2011

GCC economies are dominated by oil & gas sector which contributed 50.6% to the GCC GDP

in 2011. The revenue from oil & gas has been providing an enormous boost to the rest of the

economy via government spending.

Within non-oil industry, manufacturing sectors contributed 8.9% to the regional GDP. GCCmanufacturing sector leverages regions hydrocarbon reserves through oil refining and

petrochemicals which accounted for 2.1% and 1.5% of the 2011 regional GDP respectively.

Within the manufacturing sector, petrochemicals share grew rapidly from 13.9% in 2007 to

17% in 2011 as a result of the new projects being built and commissioned.

Petrochemicals sector contribution to the GDPis growing

2.1 Contribution of the petrochemicals sector to regional and national GDP

20.4% 18.7% 21.3% 22.5% 23.5%

13.9% 17.3% 15.6% 16.5% 17.0%

65.7% 64.0% 63.1% 60.9% 59.5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 2008 2009 2010 2011Other manufacturing Petrochemicals and chemicals Refining sector

ContributiontoManufacturing(%)

GCC countries: Contribution of sub-sectors to manufacturing GDP (%)

Source: GCC National statistical authorities and GPCA analysis, 2012

50.6%

5.4%

7.1%

4.9% 10%

11.9%

8.9%

1.2%

Crude Petroleum & Natural Gas

Finance, Insurance,

Real Estate & Business Services

ConstructionOthers

Wholesale & Retail Trade,

Restaurants and Hotels

Agriculture,

Forestry & Fishing

Transport, Storage &

Communication

Manufacturing

Refining sector 2.1%

Petrochemicals and

chemicals 1.5%

Other

manufacturing 5.3%

GCC Countries: Contribution to GDP by main activities (% GDP, 2011)

Source: GCC National statistical authorities and GPCA analysis, October 2012


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7Gulf Petrochemicals & Chemicals Association

7.1%year-on-year growth of Real

GDP in Saudi Arabia in 2011

5.5%non-oil Real GDP growth in

Saudi Arabia in 2011

11%contribution of petrochemicals

sector to manufacturing GDP

in 2011

50.1%

4.3%

5.2%

3.4%7.5%

17.2%

9.8%

2.5%


Petrochemicals andchemicals 1.1%

Other

manufacturing 5.5%


Finance, Insurance,

Real Estate & Business Services

Construction

Others



Agriculture,Forestry & Fishing

Transport,Storage &

Communication

Manufacturing

Saudi Arabia : Contribution to GDP by main activities (% GDP, 2011)

Source: Saudi Arabia Central Department of Statistics and Information and GPCA Analysis, 2012

Saudi Arabia is the largest economy in the GCC accounting for 43% of the GCC GDP.

The pace of economic expansion in 2011 reached 7.1%, and the non-oil economy grew by 8%

- the highest since 1981.

Economic development of Saudi Arabia is marked by the major role oil & gas sector is playing

in generating GDP and financing government expenditure. In order to decrease reliance on

oil, the Saudi government focused on economic diversification centered on manufacturing

sector which include oil refining and petrochemical production.

In 2011 manufacturing GDP accounted for 9.8% of Saudi Arabias GDP. Of this 9.8% the oil

rening sector contributed 34% and the petrochemicals sector contributed 11%.

2.1.2 Contribution of the petrochemical sector to regional and national GDP

Petrochemicals accounted for 11% of SaudiArabias manufacturing sector contribution to2011 GDP

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 2008 2009 2010 2011

Source: Saudi Arabia Central Department of Statistics and Information and GPCA Analysis, 2012

Other manufacturing Petrochemicals and chemicals Refining sector


33.7% 31.3% 31.7% 34.0% 34.0%

10.5% 12.0% 10.6% 11.0% 11.0%

55.8% 56.6% 57.7% 55.0% 55.0%

Saudi Arabia: Contribution of sub-sectors to manufacturing GDP (%)


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7.4%contribution of

manufacturing sector to

GCC GDP in 2011


GDP in the UAE in 2011

18.2%contribution ofpetrochemical sector to

manufacturing GDP in 2011



Other

manufacturing 5.4%

35.5%

9.7%

12.5%

7.4%

14.5%

12.2%

7.4%

0.8%


Finance, Insurance,

Real Estate

& Business Services

Construction

OthersWholesale &

Retail Trade,

Restaurants

and Hotels

Agriculture,

Forestry & Fishing


Communication

Manufacturing

UAE: Contribution to GDP by main activities (% GDP, 2011)

Source: UAE Statistical Bureau, Abu Dhabi Statistical Department and GPCA Analysis, 2012

UAE economy is the second largest GCC economies after the Saudi economy. After the

economic crisis, UAE economy is gradually recovering achieving 5.2% growth rate of a Real

GDP in 2011.

UAE economy managed to gradually move away from being oil-based economy to diversify to

non-oil manufacturing and service sectors. Non-oil sector accounted for 64.5% of the UAEs

GDP in 2011 with manufacturing sector representing 7.4%.

Petrochemicals sector accounted for 18.2% ofthe manufacturing sectors contribution to theUAE GDP in 2011



UAE: Contribution of sub-sectors to manufacturing GDP (%)

7.0% 7.2% 8.9% 8.9% 9.5%

11.2% 11.5%

17.1% 17.2% 18.2%

81.8% 81.4%74.0% 73.9% 72.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 2008 2009 2010 2011

ContributiontoManufactuirin

g(%)

Source: UAE Statistical Bureau, Abu Dhabi Statistical Department and GPCA Analysis, 2012


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GDP in Qatar in 2011

25.8%contribution of petrochemicalssector to manufacturing GDPin 2011

10%to Qatar GDP in 2011

Manufacturing

contributed

Between 2004 and 2011, with the development of Oil & Gas activities in Qatar, its GDP grew

at CAGR of 27.5%. In 2011 alone Qatars Real GDP grew by 14.1% year-on-year. Qatar is

worlds largest exporter of liquefied natural gas (LNG) accounting for a quarter of LNG exports

worldwide. Expansion in the production of gas-related products, LNG and condensates

coupled with increases in hydrocarbon prices resulted in 57.7% Oil & Gas contribution to the

GDP in 2011.

Besides Oil & Gas sector, Qatars economic growth helped to make signicant investments in

developing non-oil sector which resulted in increasing economic returns from manufacturing

sector, nancial services and infrastructure development. As a result, nominal GDP for non-oil

sector grew at CAGR of 25.7% between 2004 and 2011. Non-oil sectors contributed 42.3% to

the GDP of Qatar in 2011. Manufacturing sector contributed 10% to the Real GDP.

Petrochemicals accounted for 25.8% of themanufacturing sectors contribution to QatarGDP in 2011

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


2007

13.4%

26.3%

60.3%

2008

16.6%

32.6%

50.8%

2009

10.5%

20.6%

69.0%

2010

12.4%

24.4%

63.2%

2011

13.1%

25.8%

61.1%

ContributiontoManufactuiring(%)

Qatar: Contribution of sub-sectors to manufacturing GDP (%)

Source: Qatar Statistic Authority and GPCA Analysis, 2012



Petrochemicals and

chemicals 2.6%

Other

manufacturing 6.1%

57.7%

3.7%

5.5%

3.4%

11.6%

8.0%

10%

0.1%Crude Petroleum & Natural Gas

Finance, Insurance, Real Estate

& Business Services

Construction

Source: Qatar Statistic Authority and GPCA Analysis, 2012

Others



Agriculture,

Forestry & Fishing


Communication

Manufacturing

Qatar: Contribution to GDP by main activities (% GDP, 2011)


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GDP in Kuwait in 2011

10.6%contribution of petrochemicalsto manufacturing GDP in 2011

Kuwaits real GDP growth in 2011 is estimated at around 8.2%, supported by a 15% increase in

oil production. Growth of non-oil economic activity is estimated at around 4.5% in 2011 driven byhigher government expenditure which has increased by almost 20% in the 2011-2012 scal year.

Oil and Gas sector continues to account for the majority of Kuwaits GDP representing 62% of

real GDP in 2011. Oil prices remained high based on strong demand from emerging economies

and tight supply. Aside from contributing to national output, higher oil revenues helped to support

government development plans. Among the plans goals is diversifying the economy away from

hydrocarbons, which is expected to lead to a higher growth of the non-hydrocarbon sector.

Manufacturing sector saw 5.1 % growth in 2011 over 2010 levels. Petrochemicals contribution to

Kuwaits economy is estimated at 0.49% which represents 10.6% share of manufacturing GDP.

Petrochemicals sector in Kuwait accounted for10.6% of manufacturing sectors contribution to

the countrys GDP in 2011

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


ContributiontoManufacturing(%

)

Kuwait: Contribution of sub-sectors to manufacturing GDP (%)

2007

19.3%

6.0%

74.6%

2008

18.9%

7.3%

73.8%

2009

36.0%

12.0%

52.0%

2010

34.1%

11.0%

54.9%

2011

32.7%

10.6%

56.7%

Source: Kuwait Central Statistics Bureau and GPCA Analysis, 2012


62%

1.7%3.7%

5.7%10%

12.1%

4.7%

0.25%


Source: Kuwait Central Statistics Bureau and GPCA Analysis, 2012


Othermanufacturing 2.7%


Finance, Insurance,

Real Estate & Business ServicesConstruction

Others



Agriculture,

Forestry & Fishing


Communication

Manufacturing

Kuwait: Contribution to GDP by main activities (% GDP, 2011)

4.7%of Kuwaits GDP in 2011

Manufacturingaccounted for


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GDP in Oman in 2011

53.2%53.2% contribution ofpetrochemicals sector tomanufacturing GPD

The Omani economy has grown strongly since 2009 driven by increased government

spending and higher oil prices. In 2011 Real GDP grew by 5.4%, up from 4% growth in 2010and 1.1% in 2009.

The Omani government is placing a great emphasis to economic diversication to ensure

alternative sources of income. Over the past year non-oil GDP grew by 6.4% compared with

oil & gas GDP growth of 3.8%.

Manufacturing sector contributed 10.3% to the real GDP of Oman in 2011 of which

petrochemicals accounted for 53.2%

Petrochemicals sector accounted for 53.2%of the manufacturing sectors contribution toOmans GDP in 2011


10.3%of Omans GDP in 2011

Manufacturing

contributed

50.9%

4.8%

7.9%

5.3% 7.6%

12.1%

10.3%

1.1%



Other

manufacturing 4.0%


Finance, Insurance,

Real Estate

& Business Services

Construction Others

Wholesale & Retail

Trade, Restaurants

and Hotels

Agriculture,

Forestry & Fishing

Source: Oman National Center for Statistics and Information and GPCA Analysis, 2012

Transport,

Storage &

Communication

Manufacturing

Oman: Contribution to GDP by main activities (% GDP, 2011)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Source: Oman National Center for Statistics and Information and GPCA Analysis, 2012


ContributiontoManufactuiring(%)

Oman: Contribution of sub-sectors to manufacturing GDP (%)

2007

7.3%

59.6%

33.0%

2008

4.8%

65.7%

29.5%

2009

6.9%

50.9%

42.2%

2010

7.4%

53.7%

38.9%

2011

7.3%

53.2%

39.4%


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GDP in Bahrain in 2011

4.6%contribution of petrochemicalssector to manufacturing GDPin 2011

16.4%of Bahrains GDP in 2011

Manufacturing

contributed

Real GDP growth in Bahrain in 2011 reached 2.1%, down from 4.1% in 2010 due to the

weaknesses in the financial and tourism sectors.

Compared with other GCC states, the economy of Bahrain is diversied with manufacturing

sector accounting for 16.4% of the GDP in 2011. Oil renery and aluminum are the biggest

elements of manufacturing output in Bahrain with petrochemicals representing 4.6% of the

manufacturing GDP.

Petrochemicals sector accounted for 4.6% of themanufacturing sectors contribution to GDP ofBahrain in 2011


29.2%3.6%

8.1%

6.8%

19.3%16.2%

16.4%

0.4%


Petrochemicals and

chemicals 0.8%

Other

manufacturing 13.3%


Finance, Insurance,

Real Estate

& Business Services

Construction

Others

Wholesale &

Retail Trade,

Restaurants

and Hotels

Agriculture,

Forestry & Fishing

Transport,

Storage &

Communication

Manufacturing

Bahrain: Contribution to GDP by main activities (% GDP, 2011)

Source: Bahrain Central Informatics Organization and GPCA Analysis, 2012

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%



Bahrain: Contribution to sub-sectors to manufacturing GDP (%)

2007

12.2%

3.8%

84.0%

2008

10.5%

4.1%

85.4%

2009

11.6%

3.9%

84.5%

2010

10.0%

3.2%

86.7%

2011

14.2%

4.6%

81.2%



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33%year-on-year growthof GCC petrochemicals

export value

55.8million tons ofpetrochemicals wereexported from GCC in 2011

Petrochemical and related products account for almost half of non-oil exports from the GCC in

value and volume terms. In 2011 total value of chemical and related products exported from

the GCC equaled US$44.7bn which is 55.8 million tons While export volume grew by only 6%, due to the increase in prices for most of the

commodities including chemicals in 2011, export value from the GCC grew by 33% due to

strong petrochemicals prices in 2011.

Petrochemicals and chemicals accounted for43% of GCCs non-oil exports in 2011

2.2.1 Share of Petrochemicals in non-oil exports on regional and national levels

Share of petrochemicals and chemicals in non-oil exports in the GCC, US$ bn

Petrochemicals Other non-oil exports

43%

US$ 44.7 bn

57%

US$ 60.5 bn

41%

US$ 33.7 bn

59%

US$ 47.8 bn

2010Total: US$ 81.5 bn

2011Total: US$ 105.2 bn

Source: GCC National statistical authorities and GPCA Analysis, 2012

Share of petrochemicals and chemicals in non-oil exports in the GCC, million tons

43%

55.8 Million

Tons

57%

72.8 Million

Tons

2011

Total: 128.6 Million Tons

2010


45%

52.6 Million

Tons

55%

64.6 Million

Tons


Source: GCC National statistical authorities and GPCA Analysis, 2012

44.7bnworth of petrochemicals wereexported from GCC in 2011

US$


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35.2million tons of chemicals and

related products were exported

from Saudi Arabia in 2011

30.7bnworth of chemicals and related

products exports from Saudi

Arabia in 2011

US$ Value of Saudi Arabias petrochemicals and chemicals exports rose by 40% in 2011 from a year

earlier driven by higher prices and increasing demand.

Saudi Arabia shipped 35.2 million tons of petrochemicals and chemicals in 2011 which is 6%

higher than in the previous year.

Petrochemicals and chemicals exportsaccounted for 72% of Saudi Arabias non-oilexport value in 2011


Share of petrochemicalsand chemicals in non-oil exports in Saudi Arabia, %



2011 Non-Oil Export ValueTotal: US$ 47 bn

72%

US$ 35.2 bn

28%

US$ 13.5 bn

2011 Non-oil Export Volume


65%

US$ 30.7 bn

35%

US$ 16.4 bn

Source: Saudi Arabia Central Department of Statistics & Information and GPCA Analysis, 2012

Source: Saudi Arabia Central Department of Statistics & Information and GPCA Analysis, 2012


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21%year-on-year growth of UAE

chemicals and related products

export value in 2011

The role of petrochemicals and chemicals in the UAE non-oil exports is marginal

representing 9% of the total non oil export value in 2011 or US$ 2.7bn. This is 21% increase

from the year before.

In terms of volume, petrochemicals and chemicals accounted for 7% of the non-oil exports.The majority of petrochemicals and chemicals are exported from the Emirate of Abu Dhabi.

The petrochemicals share ofexports from Abu Dhabi is 24% which is higher than the

petrochemicals share of exports for the whole UAE

Petrochemicals exports accounted for a minorshare of UAEs non-oil exports in 2011

2.2.3 Share of Petrochemicals in non-oil exports on regional and national level

Share of petrochemicals and chemicals in non-oil exports in the UAE, %

Source: UAE Statistical Bureau, 2012

Source: Abu Dhabi Statistical Department, 2012

2011 Non-Oil Export ValueTotal: US$ 31bn

2011 Non-Oil Export VolumeTotal: 24.3 Million Tons

7%

1.7 MillionTons

93%

22.5 MillionTons

9%

US$ 2.7 bn

91%

US$ 28.3 bn



65%

US$ 30.7 bn

Shape of petrochemicals & chemicals in non-oil exports in Abu Dhabi, %

Source: UAE Statistical Bureau, 2012

2011 Non-oil export valueTotal: US$ 3.1 bn

24%

US$ 757 mn

76%

US$ 2.4 bn



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46%increase in petrochemicals

and chemicals export

value in 2011

Total value of non-oil exports from Qatar in 2011 is estimated at US$7.9bn out of which 69%

are petrochemicals and chemicals. Compared with the previous year, petrochemicals exports

from Qatar grew by 46% in value terms.

Non-oil export volume in 2011 was 11.5 million tons which is an increase of 14% from the year

before. Petrochemicals and chemicals contributed 65% to the volume of non-oil exports from

Qatar in 2011.

Petrochemicals and chemicals exportsaccounted for 69% of Qatars non-oil exportvalue in 2011

Share of petrochemicals and chemicals in non-oil exports in Qatar, %



Source: Qatar Statistical Department and GPCA Analysis, 2012

Source: Qatar Statistical Department and GPCA Analysis, 2012

2011 Non-Oil Export VolumeTotal: 11.5 million tons

2011 Non-Oil Export ValueTotal: US$ 7.9 bn

69%

US$ 5.4 bn

31%

US$ 2.5 bn

65%

7.5 Million Tons

35%

4 Million Tons



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66%year-on-year increase

of petrochemicals and

chemicals export value from

Kuwait in 2010

Latest available data on Kuwait export shows that petrochemicals and chemicals exports

account for 48% of non-oil export value in 2010. This is an increase of 66% from 2009 data.

Volume wise the share of petrochemicals and chemicals exports in 2010 reached 61% or 3.9

million tons. Compared to the export volume in the previous year this is an increase of 38%.

Petrochemicals and chemicals exportsaccounted for 61% of Kuwaits non-oil exportvolume in 2010*


Share of petrochemicals and chemicals in non-oil exports in Kuwait, %



Source: Kuwait Customs Authority


48%

US$ 3.2 bn

52%

US$ 3.5 bn

2010 Non-Oil Export VolumeTotal: 6.5 million tons

61%

4 Million Tons

39%

2.5 Million Tons

*Note: Latest available statistics for foreign trade in Kuwait is for 2010

Source: Kuwait Customs Authority

*Note: Latest available statistics for foreign trade in Kuwait is for 2010


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in petrochemicals and

chemicals exports from

Oman in 2010

Oman saw the value of its non-oil exports rise to US$ 6.4bn in 2010 which is an increase of32% from the year before. Petrochemicals and chemicals accounted for 39% of non-oil export

value in the same year posting an increase of 71% from 2009 level.

Petrochemicals and chemicals exportsaccounted for 39% of Omans non-oil exportvalue*


Share of petrochemicals and chemicals in non-oil exports in Oman, %

Source: Oman National Centre for Statistical Department and

information and GPCA Analysis, 2012

* - Note: Latest available statistics for foreign trade in Oman is for 2010

Source: Oman National Centre for Statistical Department and

information and GPCA Analysis, 2012

* - Note: Latest available statistics for foreign trade in Oman is for 2010


39%

US$ 3.9 bn

61%

US$ 2.5 bn

2010 Non-Oil Export VolumeTotal: 24 Million Tons

26%

6.2 Million Tons

74%

17.8 Million Tons



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50%year-on-year increase in

petrochemicals and chemicals

export volume in 2011

Total value of non oil export in Bahrain reached US$ 6.1bn in 2011 of which 4.1% arepetrochemicals and chemicals exports. Compared to the previous year, the value of

petrochemicals exports from Bahrain has increased by 50%.

Volume wise, non- oil exports from Bahrain reached 13.5 million tons which is an increase of

30% from the year before. Petrochemicals and chemicals contributed 8.6% to non-oil export

volume.

Petrochemicals and chemicals exportsaccounted for 8.6% of Bahrains non-oil exportvolume in 2011


Share of petrochemicals and chemicals in non-oil exports in Bahrain, %

2011 Non-Oil Export VolumeTotal: 13.5 Million Tons

2011 Non-Oil Export ValueTotal: US$ 6.1 bn 4.1%

US$ 0.3 bn

95.9%

US$ 5.8 bn





8.6%

1.2 Million Tons

91.4%

12.3 Million Tons

26%

6.2 Million Tons


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3

GCC Petrochemicals Industry Profile3GCC Production Capacity by Product (2007-2011)GCC Production Capacity by Country (2007-2011)

GCC Capacity Utilization (2010-2011)GCC Capacity Additions (2010-2011)


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In 2011, GCC basic petrochemicals capacity reached 45.4 million tons per annum which

accounts for 38% of the total capacity of the regional petrochemicals industry. Between 2007

and 2011 regional capacity to produce basic petrochemicals has been expanding at compound

annual growth rate (CAGR) of 13.4%.

GCC fertilizer capacity in 2011 was estimated at 27.4 million tons per annum. This is 51%

higher than in 2007. From 2007-2011 CAGR of fertilizer sector in the region was 10.8%

In 2011 regional capacity for production of polymers accounted for 16.8% or 20.4 million tons

per annum. In 2011 GCC polymers capacity grew by 4%, however the 2007-2011 CAGR for

polymers capacity was 16.5%.

Chemical products accounted for 14.3% of the total GCC petrochemicals capacity in 2011 and

reached 17.2 million tons per annum. From 2007-2011 chemicals capacity grew at CAGR of

9.8%, however the year-on-year growth of the GCC chemicals capacity in 2011 was 6%.

GCC capacity for production of intermediate petrochemicals accounted for 8.2% of the total

GCC petrochemicals capacity. 21% CAGR of the GCC capacity for production of intermediates

is the highest among other product categories. In 2011 alone, capacity of intermediates rose

by 11% over the previous year.

Specialties continue to account for the minor share of 0.5% of the total petrochemicals

capacity.

6.9

0

20

40

60Millio

nTons

80

100

120

140

26.6

18.2

11.1

11.94.6

73 76

92

2007

27.3

18.2

11.2

11.9

6.9

2008

32.5

19.5

16.2

14.8

8.3

2009

110

44.3

20.1

19.6

16.3

8.9

2010

121

45.4

27.4

20.4

17.2

9.9

2011

Basic Fertilizers Polymer Chemical Intermediate Specialities

GCC Petrochemicals Capacity by Product Group, Million Tons

Source: GPCA Petrochemicals Database, October 2012

CAGR:13.4%

37.5 %

Basic Petrochemicals

account for

of the total GCC

petrochemicals capacity

36%year-on-year growth

of fertilizers capacity

in 2011

77% of GCC petrochemicals capacity isrepresented by basic petrochemicals, fertilizersand polymers

3.1.1 GCC Capacity: Breakdown by Product Groups

11%year-on-year growth of

intermediates capacity

in 2011


23/97


From 2007-2011intermediates and polymers saw the highest CAGR of 21.4% and 16.5%

respectively.

The GCC capacity expansion index covering 2007 to 2011 reveals that the regional capacity

to produce basic petrochemicals, intermediates and polymer products expanded at stronger

rate than the regions overall petrochemicals index.Capacity expansion index for intermediates

reached 217 points in 2011 - this is highest among all product groups. 2011 Polymers capacity

expansion index of 184 is the second highest. Expansion of basic petrochemicals in the GCC

between 2007 and 2011 brought its index to 171 points. Although it did improve to 151 points

in 2011, fertilizers capacity expansion index is much lower than the overall GCC index.

GCC Petrochemicals Capacity by Product Group, %

2007

Total: 73 Million Tons2011

Total: 121 Mill ion Tons

36.4%

24.9%

15.2%

16.2%

6.2%

1%

Basic Fertilizers Polymer Chemical Intermediate Specialities

37.5%

22.7%

16.8%

14.3%

8.2%

0.5%


GCC Petrochemicals Capacity Growth by Product Groups (CAGR, 2007-2011)


21.4%

Intermediate

16.5%

Polymer

14.3%

Basic

10.8%

Fertilizers

9.8%

Chemical -4.4%

Specialities

All products CAGR: 13.4%

0

10

-10

20

30


24/97


75%Over

of the GCC petrochemicals

capacity in 2011 is attributable

to Ethylene (44%) and

Methane products (32%)

The majority of GCC petrochemicals capacity is based on Methane (C1) and Ethylene (C2). In2011 they accounted for 76% of the total regional basic capacity. While C1 and C2 capacities

already represent a significant share of the regional petrochemicals industry, they continue

to grow. In 2011 Methane (C1) capacities grew by 13% over 2010 levels and Ethylene (C2)

capacities grew by 9%.

Propylene (C3) product chain represents 15% of the total petrochemicals capacity in the GCC.

Share of C3 products has signicantly increased over the past 5 years from 10% in 2007 to

the current 15%. In 2011 Propylene (C3) products grew by only 2%, however the 2007-2011

compound annual growth rate (CAGR) for propylene products is24.1% which is the second

only to aromatics.

Aromatics capacity in the GCC grew at CAGR 26% between 2007 and 2011. This is the

highest growth if compared with GCC capacity growth of other product chains. In 2011, share

of aromatics in the total GCC petrochemicals capacity reached 8% up from 5% in 2007.

Analyzing 2011 capacity expansion index based on 2007 being 100, we observe that

Aromatics and Propylene (C3) products reach highest levels among other value chains.

Aromatics index rose to 252 followed closely by Propylene (C3) index of 237 points. Capacity

expansion index of these two products is much higher than overall GCC capacity expansion

index in 2011 of 166 points. Index related to GCC capacity of Ethylene (C2) products was

slightly above the overall index. This trend continued in 2011 when Ethylene (C2) capacity

expansion index grew to 176 points.

Since 2007 aromatics and propylene havebeen rapidly expanding at CAGR 26% and 24%respectively

3.1.2 GCC Capacity: Breakdown by Value-chain

GCC Petrochemicals Capacity by Value Chain, Million Tons

0

20

40

60

80

100

120

140

30.3

30.0

7.4

4.0

2007

73

30.2

31.4

8.1

5.0

76

2008

32.5

38.6

13.2

6.2

92

2009

34.2

48.4

17.3

8.7

110

2010

38.7

52.8

17.6

10.1

121

2011

MillionsTons

C1 Methane C2 Ethylene C3 Propylene C4 Butadiene Aromat ics


CAGR:13.4

%


25/97


30%y-o-y grwoth of GCCButadiene produces valuechain in 2011

26%

Capacity of GCC

Aromatics products valuechain grew at CAGR

(2007 - 2011)

GCC Petrochemicals Capacity Growth by Value Chain (CAGR, 2007-2011)


Total products CAGR: 13.4%26.0 %

Aromatics

24.1 %

C3 Propylene

15.2 %

C2 Ethylene

7.1 %

C4 Butadiene

6.3 %

C1 Methane

GCC Petrochemicals Capacity by Value Chain, %

32%

44%

15%

1%

8%

2007

Total:73 Million Tons

41%

41%

10%

2%6%

2011

Total: 121 Million Tons


C1 Methane C2 Ethylene C3 Propylene C4 Butadiene Aromatics


26/97


Ethylene, methanol

and propylene

collectively account

for

88%

of total basicpetrochemicals

capacity

Ethylene capacity represents 49% of the GCC basic petrochemicals capacity. Regional

companies continued to expand their ethylene capacities between 2007 and 2011 at CAGR

15%. Methanol is the second largest basic petrochemical produced in the GCC accounting for 22%

of the total basic petrochemicals capacity. No significant capacity additions of Methanol were

reported in the GCC between 2007 and 2011 resulting at CAGR of only 4%.

Regional capacity of propylene reached 7.7 million tons per annum in 2011 accounting for 17%

of basic petrochemicals. Between 2007 and 2011 GCC propylene capacity was growing at

CAGR of 27%, one of the highest among other basic petrochemicals.

The share of benzene in the regional capacity of basic petrochemicals in 2011 remains modest

at 6%. Even though, benzene capacity was growing at CAGR of 13%, its share remain on par

with the 2007 level which was 7% of the total.

Mixed xylenes represent 5% of the regional capacity of basic petrochemicals. Capacity growth

of these products between 2007 and 2011 stood at 50% which is the highest among other

basic petrochemicals.

GCC Capacity of Butadiene accounted for 1% of total capacity of basic petrochemicals in 2011.

In 2011, the GCC basic petrochemicalsproduction capacity was 45.4 million tons p.a.

3.1.3 Basic Petrochemicals

GCC Basic Petrochemicals Capacity by Product, Million Tons


0

5

10

15

20

25

30

35

40

45

50

12.4

26.4

8.4

3.01.8

2007

27.2

12.4

8.4

3.5

2.0

2008

32.6

14.7

8.7

5.3

2.2

2009

44.4

21.6

9.8

7.5

2.9

2010

45.4

22.3

9.9

7.7

2.9

2011

Ethylene Methanol Propylene Benzene Mixed Xylenes Butadiene Toluene

CAGR15%

MillionsTons


27/97


Ethylenerepresents

nearly half of

the GCC basic

petrochemicals

production

capacity

GCC Petrochemicals Capacity by Product, Share %


2007


47%

32%

11%

7%

2%

1%

Ethylene Methanol Propylene Benzene Mixed XylenesButadiene Toluene

2011


49%

22%

17%

6%

5%1%

GCC Basic Petrochemicals Capacity Growth by Product, CAGR (%)


0%

Butadiene

0%

TolueneMixed Xylenes

50%

27%

Propylene

16%

Ethylene

13%

Benzene

4%

Methanol

Basic Petrochemicals

CAGR: 15%

0

20

40

60


28/97


GCC Fertilizers capacity by product, Million Tons


10.1 10.1 10.7 11.3 12.7

7.6 7.6 8.3 8.3

11.40.5 0.5 0.5 0.5

3.4

0

5

10

15

20

25

30

18.2 18.2 19.5 20.1

27.4

2007 2008 2009 2010 2011

MillionsTons

Urea Ammonia Diammonium phosphate (DAP)

CAGR11%

Capacity expansion of fertilizer products has recently become a focus for GCC states. Themajority of new fertilizers capacities were added in 2011. In 2011 regional fertilizers capacity

grew by 36% y-o-y.

In 2011 the urea production capacity of GCC countries reached 12.7 million tones which

represents 46% of the total fertilizers capacity in the region. With the gradual expansion of

urea capacities over the past years, ureas CAGR of 6% is lower than 11% growth rate of

fertilizers in total.

Share of Ammonia in the regional capacity of fertilizers has been steady at 42%. In 2011 GCC

countries were able to produce 11.4 million tones of ammonia.

Production capabilities of diammonium phosphates (DAP) in the region have been limited

until 2011 when a significant capacity of diammonium phosphates (DAP) was brought on

stream. With the new capacity additions share of DAP in the total fertilizers capacity in 2011

rose to 12%. DAPs capacity expansion index reached 680 points in 2011 the highest of all

fertilizers.

Ammonia and DAP expansions accountedfor the majority of fertilizers capacityadditions in 2011

3.1.4 Fertilizers

36%year-on-year increase of GCC

fertilizers capacity in 2011

Urea accounts for

46%of the GCC fertilizers capacity

Share of DAP capacity

increased to

12%of the GCC fertilizers capacity


29/97


GCC Fertilizers Capacity by Product, Share (%)

2007

Total: 18 .2 Million Tons


2011

Total: 27 .4 Million Tons

55%

42%

3%

46%

42%

12%

Urea Ammonia Diammonium phosphate (DAP)

GCC Fertilizers capacity growth by product, CAGR (%)


Fertilizers CAGR: 11%

61 %

11 % 6 %

Diammonium

Phosphate (DAP)

Ammonia Urea


30/97


95%of the GCC polymers

capacity in 2011

Polyethylene andPolypropylene represent

Regional polyethylene

capacity expanded at CAGR

12.4%

Regional polypropylene


24.8%2007 - 2011

Total GCC capacity of polymers production facilities reached 20.4 million tons in 2011.

Polyethylene has the largest polymer production capacity in the GCC accounting for 57% ofthe total polymers capacity in 2011.

Second largest polymer production capacity in the GCC is polypropylene (PP) which

represents 37% of the regional polymers capacity.

From 2007-2011, the GCCs have signicantly expanded their polymer products portfolio. In

2007 production of polymers was limited to four products, in 2011 there are seven polymer

products produced in the GCC. New products include Polycarbonate (PC).

While new polymer products are being added to the current product portfolio, capacities of

the current products are also expanding. In 2007-2011 regional polypropylene (PP) capacity

had the highest growth of CAGR 24.8% while the CAGR for polyethylene capacity was

12.4%.

GCC polymers production is concentrated aroundpolyethylene and polypropylene productionhowever new products are being added

3.1.5 Polymers

GCC Polymers capacity by product, Million Tons


7.4 7.39.9

11.4 11.8

3.1

11.1 11.2

16.2

19.6 20.4

3.4

5.7

7.6 7.6

0

5

10

15

20

25

2007 2008 2009 2010 2011

MillionTons

Polyethylene PP PVC PC PS PET EPS

CAGR:16.5%

GCC Polymers capacity by product, Share (%)


2007

Total : 11.1 Million Tons

67%

28%

4%

1%

2011


37%

2%

2%1%1%

57%

Polyethylene PP PVC PC PS PET

2007 - 2011


31/97


GCC capacity to produce intermediate products in 2011 reached 9.9 million tons per annum.

Since 2007 GCC capacity of intermediate products was expanding gradually with capacity

additions taking place every year. Compound annual growth rate (CAGR) of intermediate

products capacity expansion between 2007 and 2011 is 21.4%. Largest intermediate products produced in the GCC are ethylene oxide (EO) and styrene

monomer which account for 69% of the regional capacity of intermediate products.

While they are the largest intermediate products in the region, there have been signicant

capacity additions of ethylene oxide (EO) and styrene monomer as well. From 2007-2011

Ethylene oxide (EO) capacity expanded at CAGR 16.2% and styrene monomer expanded at

CAGR of 22.6% over the same period.

Along with the increase in capacity of individual products, the GCC product portfolio of

intermediate products has also been increasing. Since 2007, the number of intermediate

products in the GCC has almost doubled. In 2011 GCC states were able to produce nine

intermediate products. New intermediate products which started production between

2007 and 2011 include Bisphenol A (BPA), Cumene, Vinyl Acetate monomer (VAM) and

Propylene Oxide (PO)

GCC countries expanding and diversifying theirintermediate products capacities

3.1.6 Intermediates

69%of the GCC intermediate

products capacity

Ethylene oxide (EO)and Styrene Monomer

represent

GCC capacity of

intermediate products

expanded at CAGR of

21.4%

GCC Intermediates capacity by product, Million Tons


2.4

4.6

6.9

8.3

8.9

9.9

3.9 4.3 4.3 4.31.1

1.92.3 2.4 2.4

1

0.7

0.7

0.7 0.7

0.7

0

2

4

6

8

10

2007 2008 2009 2010 2011

MillionsTons

Ethylene oxide (EO) Styrene Monomer Bisphenol A (BPA)

VCM Cumene EDC

VAM Propylene Oxide (PO) 1-hexene

CAGR21.4%

GCC Intermediates capacity by product, share

2007


2011



67%

52%

24%

14%

9%

Ethylene oxide (EO) Styrene Monomer

Bisphenol A (BPA) VCM

Cumene EDC

VAM

Propylene Oxide (PO)

1-hexene

44%

25%

9%

7%

6%

4%

3%

2%

2007 - 2011


32/97


3.1.7 Top 10 Products in GCC Petrochemicals Capacity

GCC ethylene capacity is largest among other products and accounted for 19% of the regional

petrochemicals capacity in 2011. Among the top 10 products, three are basic petrochemicals:

ethylene, methanol and propylene. Together they account for 33% of the regional

petrochemicals capacity.

Urea is the second largest product in the GCC and accounted for 10% of the regional capacity.

Fertilizers (urea, ammonia and DAP) are among the top 10 products in the region accounting

for 23% of the regional capacity.

Only two polymer products are within top 10: polyethylene and polypropylene which account

for 10% and 6% respectively of the regional petrochemicals capacity.

Only two of the chemicals products are in the top 10 products: Monoethylene Glycol (MEG)

and Methyl tert-butyl ether (MTBE) accounting for 6% and 3% respectively of the GCC total

petrochemicals capacity.

Of the 10 products Diammonium phosphate (DAP), Propylene, Polypropylene and Ethylene

grew at higher rate between 2007 and 2011 than the 13% capacity growth of the GCC

petrochemicals sector. DAPs CAGR of 61% was the highest among all other products.

Top 10 products account for 81% of the GCCpetrochemcals capacity

Top 10 Products Based on 2011 Petrochemicals Capacity, Share %


2011

Total: 121 Million Tones

19%

11%

10%

9%8%

6%

6%

6%

3%

3%

19%

Ethylene

Urea

Polyethylene

Ammonia

MethanolPropylene

Polypropylene (PP)

Monoethylene Glycol (MEG)

Methyl tert-butyl ether (MTBE)

Diammonium phosphate (DAP)

Others

Top 10 Products by Capacity Growth (CAGR 2007-2011)


61.5 %

DAP

27 %

Propylene

24.8 %

Polypropylene

15.7 %

Ethylene

12.4 %

Polyethylene

10.6 %

Ammonia

10.3 %

MEG

5.8 %

Urea

2.1 %

MTBE

Methanol

4.1 %

All products CAGR: 13.4%

19%of the regional


Ethylene accountsfor

11%of the regional


Urea accounts for

10%of the regional


Polyethyleneaccounts for


33/97


GCC share in the worldwide ethylene capacity rose from 10% in 2007 to 15% in 2011.

GCC states were rapidly expanding their ethylene capacities between 2007 and 2011 at

compound annual growth rate (CAGR) of 15.7%. Among other regions of the world only China

was expanding ethylene capacity at a similar pace.

GCC is the fourth largest region in the world in ethylene production after North America, Asia

(excluding China) and Europe.

GCC Ethylene capacity expansion CAGR of 15.7%is the highest in the world

151.5million tons in 2011

Worldwide ethylenecapacity reached

4.8%Worldwide ethylene


15.7%GCC ethylene capacity

expanded at CAGR

15%of the worldwideethylene capacity

GCC accounts for

3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Ethylene)

2007 - 2011

2007 - 2011

Worldwide Ethylene capacity by region, share (%)

2007


2011

Total: 151.5 million tons

Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012

67%

27%

23%25%

10%

8%

5%

2%

North America Asia (excluding China)

Europe GCC

China South America

Africa The rest of World

23%

22%

22%

15%

12%

5%1%

Worldwide Ethylene capacity growth (CAGR 2007-2011)

Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database

15.7 %

3.8 %

1.5 %

0.2 % 0 % 0 %

-0.5 %GCC China Asia

(excluding China)

South

America

Europe

Worldwide Ethylene CAGR: 4.8%

Africa The rest

of WorldNorth

America

14.8 %


34/97


3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Urea)

GCC share in the worldwide urea capacity has increased from 6% in 2007 to 7% in 2011.

GCC region was expanding its urea capacities between 2007 and 2011 at compound annual

growth rate (CAGR) of 6%. This is the highest among other regions and only South Americas

producers were expanding their urea capacities at the similar pace.

Asia (including China) continues to be the largest urea producer in the world accounting for

59% of the worldwide urea capacity.

GCC Urea capacity expansion with CAGR of 6%is the highest in the world

Worldwide Urea capacity by region, share (%)


2007


2011


37%

24%

15%

8%

6% 4%

4%2%

38%

21%

14%

8%

7%5%

4%3%

China Asia (excluding China)

Europe North America

GCC South America


Worldwide Urea capacity growth (CAGR 2007-2011)


0%

Europe

0%

North

America

6%

GCC

5%

South

America

3%

Africa

2%

China

Worldwide Urea CAGR: 2%

-1%Asia (excluding

China)

2%Worldwide urea

capacity expanded at aCAGR of

2007-2011

7%GCC accounts for

of the worldwide ureacapacity

6%GCC urea capacityexpanded at CAGR

2007-2011


35/97


12%GCC accounts for

of the worldwidepolyethylene capacity

GCC share of the worldwide polyethylene capacity rose from 10% in 2007 to 12% in 2011.

From 2007-2011 Polyethylene capacity in the GCC was expanding at compound annual

growth rate (CAGR) of 12.4%. Among other regions of the world only China was expanding

its polyethylene capacity at a faster pace. China and the GCC led worldwide polyethylene

expansion between 2007 and 2011.

Polyethylene producers in other parts of the world were also expanding their capacities. Their

share in the worldwide polyethylene capacity remains marginal and reached 5% in 2011.

Asia (including China) continues to be the largest polyethylene producer in the world

accounting for 34% of the worldwide polyethylene capacity.

GCC Polyethylene capacity expansion CAGR of12.4% is one of the highest in the world

94.6million tones

Worldwide polyethylene

capacity reached

3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Polyethylene)

Worldwide Polyethylene capacity by region, share (%)

2007

Total: 76.8 Million Tones

2011



67%

26%

21%

25%

10%

10%6%

2%

Europe Asia (excluding China)

North America China

GCC South America


22%

20%

20%

14%

12%

6%1%5%

Worldwide Polyethylene capacity growth (CAGR 2007-2011)


Worldwide polyethylene CAGR: 5.4%

14.7 %

China

12.4 %

GCC

4.0 %

Asia(excluding China)

3.3 %

Africa

1.6 %

SouthAmerica

0.9 %

Europe -0.6 %

North America

5.4%Worldwide

polyethylene capacityexpanded at CAGR

2007 - 2011

12.4%GCC

polyethylene capacityexpanded at CAGR

2007 - 2011


36/97


3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Ammonia)

GCC share of the worldwide ethylene capacity rose from 4% in 2007 to 5% in 2011.

While GCC states were expanding their ammonia capacities, other regions were also adding

ammonia capacities. Although GCC ammonia capacity was growing at CAGR 11%, itsworldwide share increased only by 1%. Most significant ammonia capacity additions were

taking place in Asia (excluding China).

Asia (including China) continues to be the largest ammonia producer in the world accounting

for 54% of worldwide ammonia capacity (China accounting for 30% and rest of Asia

accounting for 24%).

GCC Ammonia capacity expansion with CAGR of11% is one of the highest in the world

Worldwide Ammonia capacity by region, share (%)


2007

Total: 174.1 million tones

2011




South America GCC


33%

15%25%

10%

6%

4% 4%

3%

30%

24%

21%

7%

6%

5% 4%

3%

Worldwide Ammonia capacity growth (CAGR 2007-2011)

Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012V

17 %

11 %

8 %

5 %

3 % 3 %

0 % -1 %Asia

(excluding

China)

GCC The rest

ofWorld

Africa South

America

ChinaEurope

North

America

Worldwide Ammonia CAGR: 5%

212.2Worldwide ammoniacapacity reached 212.2

million tons in 2011

5%

Worldwide ammoniacapacity expanded at CAGR

between 2007 and 2011

11%

GCC ammonia capacityexpanded at CAGR

5%GCC accounts for

of the worldwide ammoniacapacity

2007 - 2011


37/97


12%

GCC accounts for

of the worldwideMethonal capacity

GCC share in the worldwide methanol capacity has decreased from 17% in 2007 to12% in 2011.

Methanol capacity expansion in the GCC was lower than in other parts of the world

which resulted in the GCC regions reduced share of worldwide methanol capacity

Most of the methanol capacity additions since 2007 have been in China. Consequently

Chinas share of worldwide methanol capacity rose from 23% in 2007 to 40% in 2011.

45% of the worldwide methanol capacity is concentrated in Asia (including China)

which makes Asia the largest producer of methanol in the world.

GCC continue to be one of the top methanolproducing regions in the world accounting for12% of worldwide methanol capacity

85million tons in 2011

Worldwide methanolcapacity reached

3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Methanol)

Worldwide Methanol capacity by region, share (%)

2007


2011



23%

25%

17%

19%

6%

4%3%3%

40%

16%12%

12%

10%

5%

3%

2%



South America GCC


Worldwide Methanol capacity growth (CAGR 2007-2011)


32 %

China

22 %

Asia

(excluding China)

15 %

Africa

4 %

GCC

2 %

South America -1 %North

America

2 %

Europe

Worldwide Methanol CAGR: 14%

14%Worldwide methanol


2007-2011

4%GCC methanol capacity

expanded at CAGR

2007-2011


38/97


3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Propylene)

GCC share in the worldwide propylene capacity increased from 3% in 2007 to 7% in 2011.

Asia (including China) and North America continue to be the largest propylene producers in the

world accounting for 67% of the worldwide propylene capacity.

GCC states were rapidly expanding their propylene capacities between 2007 and 2011 at

compound annual growth rate (CAGR) of 27%.

China alone accounts for 18% of the worldwide propylene capacity. Since 2007 China has

been expanding its propylene capacities at a CAGR of 14.2% which is the second highest

growth rate after GCC

GCC propylene capacity expansion of CAGR27% is the highest in the world

Worldwide Propylene capacity by region, share (%)


2007


2011


24%

28%

24%

14%

3%

5%

2%

Asia (excluding China) North America

Europe China

GCC South America


26%

23%

19%

18%

7% 4%

2%1%

Worldwide Propylene capacity growth (CAGR 2007-2011)

Source: Mitsubishi Chemical Techo-Research Corporation (MCTR) and GPCA database, 2012V

27%

GCC

14.2%

China

7.9%

Asia

(excluding China)

6.7%

Africa

6.0%

South

America

1.6%

North

America-0.3%

Europe

Worldwide propylene CAGR 6.4%

112.9Worldwide propylenecapacity reached


6.4%

27%

Worldwide propylenecapacity expanded at CAGR

GCC propylene capacityexpanded at CAGR

7%GCC accounts for

of the worldwide propylenecapacity

2007-2011

2007-2011


39/97


12%

GCC accounts for

of the worldwidepolypropylene capacity

GCC share in the worldwide polypropylene (PP) capacity rose from 7% in 2007 to 12% in

2011.

The majority of world polypropylene (PP) continues to be produced in Asia (including China).

Their share of the worldwide polypropylene (PP) capacity is 50%. China is the largest

single country polypropylene (PP) producer accounting for 23% of the worldwide capacity.

Polypropylene producers in China were expanding their polypropylene capacities at CAGR of

17.1%.

While Europe continues to be one of the largest producers of polypropylene, there were no

significant capacity additions over the past years in Europe which has resulted in the decline

of its worldwide market share from 24% in 2007 to 17% in 2011.

GCC polypropylene (PP) capacity expansionof CAGR 24.8% is the highest in the world


Worldwide polypropylene(PP) capacity reached

8%Worldwide

polypropylene capacityexpanded at CAGR

(2007-2011)

3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Polypropylene (PP))

Worldwide Polypropylene (PP) capacity growth (CAGR 2007-2011)

Worldwide Polypropylene (PP)

CAGR: 8%


24.8%

GCC

19.0%

Africa

17.1%

China

10.3%

South

America

7.4%

Asia

(excluding

China)

-0.3%

Europe -3.4%

North America

24.8%

GCCpolypropylene capacity

expanded at CAGR

(2007-2011)

Worldwide Polypropylene (PP) capacity by region, share (%)


67%

2007


28%

16%

24%

18%

7%6%

1%

2011


27%

23%17%

12%

12%

6% 2%

1%

Asia (excluding China) ChinaEurope North America

GCC South AmericaAfrica The rest of World


40/97


3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Monoethylene Glycol (MEG))

GCC share in the worldwide MEG capacity rose from 24% in 2007 to 29% in 2011.

GCC states were rapidly expanding their MEG capacities between 2007 and 2011 at

compound annual growth rate (CAGR) of 10%. Among other regions of the world only China

was expanding MEG capacity at a higher rate. Asia (including China) is the largest MEG producer in the world accounting for 46% of the

worldwide MEG capacity. GCC is the second largest producer of MEG representing 29% of

the global capacity.

GCC region is the second largest MEG producerin the world after Asia

Worldwide Monoethylene Glycol (MEG) capacity by region, share (%)


2007


2011


24%

28%

11%

22%

11%

4%

GCC Asia (excluding China)

China North America

Europe South America

The rest of World Africa

29%

27%

18%

14%

8% 3%

1%

Worldwide Monoethylene Glycol (MEG) capacity growth (CAGR 2007-2011)

Worldwide MEG CAGR: 6%


19%

China

10%

GCC

4%

Asia

(excluding China)

0%

South

America

-5%

Europe

-6%

North

America

0%

Africa

26.1Worldwide MEGcapacity reached


2007-20116%Worldwide MEG capacity

expanded at CAGR

29%GCC accounts for

of the worldwide MEGcapacity

10%

GCC MEG capacityexpanded at CAGR

2007-2011


41/97


22%

GCC accounts for

of the worldwideMTBE capacity

GCC share of the worldwide MTBE capacity rose from 20% in 2007 to 22% in 2011.

While MTBE capacities worldwide were decreasing, Asia (including China) and GCC were

expanding their MTBE capacities.

MTBE capacity in China grew at CAGR of 15% the strongest growth worldwide. GCCproducers were expanding their MTBE capacities at CAGR of 2% between 2007 and 2011.

Asia (including China) is the largest MTBE producer in the world accounting for 38% of the

worlds MTBE capacity. China alone represents 26% of the global MTBE capacity.

GCC region is the second largest MTBEproducer in the world after Asia


Worldwide MTBEcapacity reached

1%Worldwide

MTBE capacity decreasedby CAGR

(2007-2011)

3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (Methyl tert-butyl ether (MTBE))

Worldwide MTBE capacity by region, share (%)

2007



67%

15%

20%

19%

23%

10%

8%

5%

China GCC


Asia (excluding China) South America

The rest of World

2011


26%

22%18%

14%

12%

5%

3%

2%

GCCMTBE capacity

expended at CAGR

(2007-2011)

Worldwide MTBE capacity growth (CAGR 2007-2011)


Worldwide MTBE CAGR: -1%

15%

China

4%

Asia

(excluding China)

2%

GCCEurope

-10%

The rest of

World

-11%

South

America

-13%

North

America

-2%


42/97


5%Worldwide DAP capacity

expanded at CAGR

3.1.8 Share of GCC top 10 Products in the Worldwide Capacity (DAP)

GCC share in the worldwide ethylene capacity rose from 1% in 2007 to 5% in 2011. GCC has expanded its DAP capacity between 2007 and 2011 at compound annual growth

rate (CAGR) of 61%. It is the highest regional capacity expansion rate in the world.

Asia (including China) is the largest DAP producer in the world accounting for 42% of the

global DAP Capacity. China alone represents 32% of the worlds DAP capacity.

GCC is a relatively minor producer of DAP accounting for 5% of the worldwide DAP capacity.

GCC Diammonium phosphate (DAP)scapacity expansion of CAGR 61% is thehigest in the world

Worldwide Monoethylene Glycol (MEG) capacity by region, share (%)


2007


2011

Total: 73 Million Tones

25%

27%14%

12%

11%

7%

1%

3%

China North America

Europe Asia (excluding China)

Afr ica The rest of World

GCC South America

32%

22%11%

11%

10%

6%

5%3%


Worldwide DAP CAGR: 5%

Worldwide DAP capacity growth (CAGR 2007-2011)

61%

GCC

11%

China

6 %

South

America

5%

Africa

1%

Asia

(excluding

China)

0%

NorthAmerica

0%

The rest of

World-1%

Europe

73Worldwide DAPcapacity reached


2007-2011

61%

GCC DAP capacityexpanded at CAGR

5%GCC accounts for

of the worldwideDAP capacity

2007-2011


43/97


2011 global ranking of GCC top 10 products

Capacity expansions for the major GCCproducts were the highest among otherregions of the world

3.1.9 Global Ranking of GCC top 10 Products

ProductName

GCC Capacity(million tons)

Globalshare (%)

CAGR(2007-2011)

GlobalRanking(CAGR)

GlobalRanking

(Capacity)*

Ethylene 22.3 15% 15.7% 1 4

Urea 12.7 7% 6% 1 4

Polyethylene 11.8 12% 12.4% 2 4

Ammonia 11.4 5% 11% 2 5

Methanol 9.9 12% 4% 4 3

Propylene 7.7 7% 27% 1 4

Polypropylene

(PP)7.6 12% 25% 1 4

Monoethylene

Glycol (MEG)7.6 29% 10% 2 2

Methyl tert-butyl

ether (MTBE)4.0 22% 2% 3 2

Diammonium

phosphate (DAP)3.4 5% 61% 1 7

Note: Global ranking considers regional growth rates (CAGR) between 2007 and 2011 and regional capacities for individualproducts



44/97


Petrochemicals capacity continues to expand in the GCC. In 2011, total GCC petrochemicals

capacity grew by 10%, reaching 121 million tons per annum. Between 2007 and 2011regional

petrochemicals capacity expanded at CAGR of 13.4%.

Saudi Arabia is the largest petrochemical producer in the region, accounting for 67% of thetotal GCC petrochemicals capacity. With new capacity additions in other GCC countries, Saudi

Arabias share in the regional petrochemicals capacity in 2011 has declined by 3% compared

with highest 70% in 2007.

Qatar continues to be the second largest petrochemicals producer in the region accounting

for 14% of the total GCC capacity in 2011. In 2011 Qatar added 5.3 million tons of new

petrochemicals capacity. This brings Qatars total petrochemicals capacity to 16.7 million tons

per annum. In 2011 compared to 2010 Oman, Kuwait and the UAE haveeach seen a decrease of

1% in their countrys share of the total regional petrochemicals capacity.

o Omans share in 2011 has declined to 7% from 8% in 2010;

o Kuwaits share in 2011 has declined to 6% from 7% in 2010;

o UAEs share in 2011 has declined to 5% from 6% in 2010

Bahrain continues to account for 1% of the GCC petrochemicals capacity

GCC petrochemicals sector continues toexpand

3.2.1. GCC Production Capacity

GCC Petrochemicals Capacity by Country


MillionsTons

Saudi Arabia Qatar Oman Kuwait UAE Bahrain

51 54 66

75 81

10 10

10

11

17

5 5

7

9

9

4 4

5

8

8

2

73 76

92

110

121

2

2

6

6

0

20

40

60

80

100

120

140

2007 2008 2009 2010 2011

CAGR:13.4%

GCCPetrochemicals capacity

grew at CAGR of 13%

between 2007-2011

13.4% year-on-year growth of GCCPetrochemicals Capacity in

2011

10%year-on-year growth of Qatarpetrochemicals capacity in

2011

46%


45/97


of GCC petrochemicalscapacity in 2011

Saudi Arabiaaccounts for

67%

GCC Petrochemicals Capacity, Country Share

2007


2011



Saudi Arabia QatarOman KuwaitUAE Bahrain

70%

13%

6%

6% 3%2%

67%

14%

7%

6%5%1%

GCC Petrochemicals Capacity Growth by Country (CAGR, 2007-2011)

GCC CAGR: 13.4%


26%

17%16% 15%

12%

2%

UAE Oman Kuwait Qatar Saudi Arabia Bahrain


46/97


In 2011, GCC countries produced 45.4 million tons of basic petrochemicals. This is a 2 % growth

in comparison with the previous year. Looking at the longer period between 2007 and 2011,

regional basic petrochemicals capacity grew at CAGR of 15%. Saudi Arabia continues to be the largest basic petrochemicalsregional producer, accounting for

69% of the GCC total. In 2011, the countrys capacity to produce basic petrochemicals reached 31

million tons. Over the period 2007 to 2011, Saudi Arabias basic petrochemicals capacity has been

growing at CAGR 11%.

Qatar is the distant second largest producer of basic petrochemicals in the GCC accounting for

9% of the regional capacity or 4.3 million tons. Signicant capacity additions in Qatar took place in

2010 and 2011 when capacity grew by 59% and 23% respectively on year-on-year basis.

In 2011 GCC basic petrochemicals productioncapacity reached 45.4 million tons

3.2.2. Basic Petrochemicals: Breakdown by Country

GCC Basic Petrochemicals Capacity by Country, Million Tons



0

5

10

15

20

25

30

35

40

45

50

20.6

26.4 27.2

32.6

44.4 45.4

2.21.41

2007

21.3

2.21.41

2008

25.7

2.22.41

2009

30.9

3.5

3.4

33

2010

31.2

4.3

3.4

33

2011

MillionTons

CAGR:15%

GCC Basic Petrochemicals Capacity by Country, Share (%)

2007


2011



78%

8%

5%

5% 2%

2%

69%

9%

8%

7%

6%1%


Saudi Arabia accounts forthe majority of the basic

petrochemicals capacity with

69%of the regions total


of basic petrochemicalscapacity in 2011


47/97


Basic petrochemicalscapacity grew at CAGR

between 2007-2011

15%

UAE basic petrochemicals

capacity grew at CAGR

the highest in theGCC region

48%

Kuwait and Oman each represent 7% of the regional basic petrochemicals production capacity.

In 2011 both countries had the capability to produce 3.4million tons of basic petrochemicals.

Compared with their respective capacities in 2007, Kuwait and Oman had one of the highestcompounded annual growth rates in the region. Basic petrochemicals capacity in Kuwait grew at

CAGR 27% and 25% in Oman.

Basic petrochemicals capacity in the UAE reached 2.9 million tons per annum in 2011

accountingfor 6% of the regional capacity. From 2007-2011 the most signicant capacity addition

in the UAE took place in 2010.

In 2011 Bahrains share of the regional basic petrochemicals production capacity remained at 1%.

GCC Basic Petrochemicals Capacity Growth , CAGR (2007-2011)


GCC CAGR: 15%

48%

UAE Kuwait Oman

18%

Qatar

11%

Saudi Arabia

3%

Bahrain

27% 25%


48/97


GCC fertilizers capacitygrew at CAGR

2007-201111%

In 2011 GCC fertilizers capacity reached 27.4 million tons which is a 36% increase over 2010 level.

In the past years between 2007 and 2011 regional fertilizers industry grew at CAGR of 11%.

In 2011 Saudi Arabia and Qatar account for 40% and 28% respectively of the GCC fertilizers

capacity making them the largest in the region.

In both Saudi Arabia and Qatar the only capacity addition between 2007 and 2011 took place

in 2011 when 4 million tons of fertilizers capacities were brought online in Saudi Arabia and 3.3

million tons in Qatar.

In 2011 Omans fertilizer capacity is estimated to be 4.8 million tons. From 2007-2011 fertilizer

capacity in Oman expanded at a CAGR of 14%

With no fertilizers capacity additions in Kuwait and the UAE, their share in the regional fertilizers

capacity has declined. In 2011 Kuwaits share in the regional fertilizers capacity declined to 6%

and the UAEs share declined to 5%.

Fertilizers capacity in Bahrain accounts for 4% of regional capacity.

In 2011 Saudi Arabia and Qatar have significantlyincreased their fertilizers capacities

3.2.3 Fertilizers: Breakdown by Country

million ton of GCC fertilizerscapacity in 201127.4

GCC Fertilizers Capacity by Country, Million Tons


7.0 7.0 7.0 7.0

11.0

4.4 4.44.4

4.4

7.7

2.8

18.2 18.2 19.5

20.1

27.4

2.8 4.2 4.8

4.8

1.7 1.71.7 1.7

1.7

1 11 1

1

1 11 1

1

0

5

10

15

20

25

30

2007 2008 2009 2010 2011

MillionsTons


CAGR:11%

36%year-on-year increase of

the GCC fertilizers capacityin 2011


49/97


The top three producersof fertilizers in the

GCC are

SaudiArabia,Qatar

and

OmanGCC Fertilizers Capacity Growth, CAGR (2007-2011)


15%

Qatar

14%

Oman

12%

Saudi Arabia

1%

Bahrain

0%

UAE

0%

Kuwait

GCC CAGR: 11%

GCC Fertilizers Capacity by Country, Share (%)



2007


2011


39%

24%

16%

9%

7%

5%

40%

28%

17%

6%

5% 4%


50/97


GCC intermediate products capacity is located in Saudi Arabia, Kuwait and Qatar.

In 2011 GCC intermediate products capacity reached 9.9 million tons per annum. From 2007-2011 GCC intermediates capacity was expanded at a compound annual growth rate (CAGR)

of 21%.

The majority of intermediate products are produced in Saudi Arabia which accounts for 89%

of the regional capacity. Saudi Arabia is the largest producer of intermediate products and

expanded its capacity at a CAGR (2007-2011) of 22%. Since 2007 Saudi Arabias capability to

produce intermediate products has more than doubled from 4 million tons to 8.8 million tons

in 2011.

Intermediate products production in Kuwait commenced in 2009. In 2011 Kuwaits capacity of

intermediate products accounts for 5% of the regional capacity.

Majority of intermediate products are producedin Saudi Arabia which accounts for 89% of theregional capacity

3.2.4 Intermediates: Breakdown by Country

GCC intermediates capacity by country, Million Tons


4.0

6.3 7.3 7.9

8.80.5

0.6

0.6 0.6

0.6

0.5 0.5

0.5

0

2

4

6

8

10

12

2007 2008 2009 2010 2011

Saudi Arabia Qatar Kuwait

CAGR:21% 9.9

9.0

8.4

6.9

4.5

GCC intermediate productscapacity grew at CAGR

21%

year-on-year growth ofintermediate products capacity

in Saudi Arabia in 2011

12%

GCC Intermediates Capacity by Country, Share (%)


2007


12%

88%

2011


89%

6%5%

Saudi Arabia Qatar Kuwait

2007-2011


51/97


16.5%between 2007-2011

GCC polymers capacitygrew at CAGR

75%of the GCC polymerscapacity is located in

Saudi Arabia

38%UAE

polymers capacity expandsat CAGR of

between 2007-2011

19.2%Qatar

polymers capacityexpands at CAGR of

between 2007-2011

GCC Polymers Capacity by Country, Million Tons


8.6

0.9

2007

8.8

0.9

2008

13.7

0.9

2009

15.0

2.0

1.31.0

2010

15.4

2.0

1.71.0

2011

MillionTons

Saud

Download - GPCA facts2011.pdf

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