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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%

    Refining sector 3.2%

    Petrochemicals andchemicals 1.1%

    Other

    manufacturing 5.5%

    Crude Petroleum & Natural Gas

    Finance, Insurance,

    Real Estate & Business Services

    Construction

    Others

    Wholesale & Retail Trade,

    Restaurants and Hotels

    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

    ContributiontoManufacturing(%)

    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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    8 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    7.4%contribution of

    manufacturing sector to

    GCC GDP in 2011

    5.2%year-on-year growth of Real

    GDP in the UAE in 2011

    18.2%contribution ofpetrochemical sector to

    manufacturing GDP in 2011

    Refining sector 0.7%

    Petrochemicals andchemicals 1.3%

    Other

    manufacturing 5.4%

    35.5%

    9.7%

    12.5%

    7.4%

    14.5%

    12.2%

    7.4%

    0.8%

    Crude Petroleum & Natural Gas

    Finance, Insurance,

    Real Estate

    & Business Services

    Construction

    OthersWholesale &

    Retail Trade,

    Restaurants

    and Hotels

    Agriculture,

    Forestry & Fishing

    Transport, Storage &

    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

    2.1.3 Contribution of the petrochemical sector to regional and national GDP

    Other manufacturing Petrochemicals and chemicals Refining sector

    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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    9Gulf Petrochemicals & Chemicals Association

    14.1%year-on-year growth of Real

    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%

    Other manufacturing Petrochemicals and chemicals Refining sector

    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

    2.1.4 Contribution of the petrochemical sector to regional and national GDP

    Refining sector 1.3%

    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

    Wholesale & Retail Trade,

    Restaurants and Hotels

    Agriculture,

    Forestry & Fishing

    Transport, Storage &

    Communication

    Manufacturing

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

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    10 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    8.2%year-on-year growth of Real

    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%

    Other manufacturing Petrochemicals and chemicals Refining sector

    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

    2.1.5 Contribution of the petrochemical sector to regional and national GDP

    62%

    1.7%3.7%

    5.7%10%

    12.1%

    4.7%

    0.25%

    Refining sector 1.5%

    Source: Kuwait Central Statistics Bureau and GPCA Analysis, 2012

    Petrochemicals andchemicals 0.49%

    Othermanufacturing 2.7%

    Crude Petroleum & Natural Gas

    Finance, Insurance,

    Real Estate & Business ServicesConstruction

    Others

    Wholesale & Retail Trade,

    Restaurants and Hotels

    Agriculture,

    Forestry & Fishing

    Transport, Storage &

    Communication

    Manufacturing

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

    4.7%of Kuwaits GDP in 2011

    Manufacturingaccounted for

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    11Gulf Petrochemicals & Chemicals Association

    5.4%year-on-year growth of Real

    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

    2.1.6 Contribution of the petrochemical sector to regional and national GDP

    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%

    Refining sector 0.8%

    Petrochemicals andchemicals 5.5%

    Other

    manufacturing 4.0%

    Crude Petroleum & Natural Gas

    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

    Other manufacturing Petrochemicals and chemicals Refining sector

    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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    12 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    2.1%year-on-year growth of Real

    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

    2.1.6 Contribution of the petrochemical sector to regional and national GDP

    29.2%3.6%

    8.1%

    6.8%

    19.3%16.2%

    16.4%

    0.4%

    Refining sector 2.3%

    Petrochemicals and

    chemicals 0.8%

    Other

    manufacturing 13.3%

    Crude Petroleum & Natural Gas

    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%

    Other manufacturing Petrochemicals and chemicals Refining sector

    ContributiontoManufacturing(%)

    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%

    Source: Bahrain Central Informatics Organization and GPCA Analysis, 2012

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    13Gulf Petrochemicals & Chemicals Association

    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

    Total: 117.2 Million Tons

    45%

    52.6 Million

    Tons

    55%

    64.6 Million

    Tons

    Petrochemicals Other non-oil exports

    Source: GCC National statistical authorities and GPCA Analysis, 2012

    44.7bnworth of petrochemicals wereexported from GCC in 2011

    US$

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    14 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    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

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

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

    Petrochemicals Other non-oil exports

    Petrochemicals Other non-oil exports

    2011 Non-Oil Export ValueTotal: US$ 47 bn

    72%

    US$ 35.2 bn

    28%

    US$ 13.5 bn

    2011 Non-oil Export Volume

    Total: 48.7 Million Tons

    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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    15Gulf Petrochemicals & Chemicals Association

    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

    Petrochemicals Other non-oil exports

    Petrochemicals Other non-oil exports

    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

    Petrochemicals Other non-oil exports

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    16 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    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, %

    Petrochemicals Other non-oil exports

    Petrochemicals Other non-oil exports

    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

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

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    17Gulf Petrochemicals & Chemicals Association

    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*

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

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

    Petrochemicals Other non-oil exports

    Petrochemicals Other non-oil exports

    Source: Kuwait Customs Authority

    2010 Non-Oil Export ValueTotal: US$ 6.7 bn

    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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    18 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    71%year-on-year increase

    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*

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

    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

    2010 Non-Oil Export ValueTotal: US$ 6.4 bn

    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

    Petrochemicals Other non-oil exports

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    19Gulf Petrochemicals & Chemicals Association

    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

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

    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

    Source: Bahrain Central Informatics Organization and GPCA Analysis, 2012

    Source: Bahrain Central Informatics Organization and GPCA Analysis, 2012

    Petrochemicals Other non-oil exports

    Petrochemicals Other non-oil exports

    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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    22 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    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

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    23Gulf Petrochemicals & Chemicals Association

    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%

    Source: GPCA Petrochemicals Database, October 2012

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

    Source: GPCA Petrochemicals Database, October 2012

    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

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    24 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    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

    Source: GPCA Petrochemicals Database, October 2012

    CAGR:13.4

    %

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    25Gulf Petrochemicals & Chemicals Association

    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)

    Source: GPCA Petrochemicals Database, October 2012

    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

    Source: GPCA Petrochemicals Database, October 2012

    C1 Methane C2 Ethylene C3 Propylene C4 Butadiene Aromatics

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    26 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    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

    Source: GPCA Petrochemicals Database, October 2012

    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

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    27Gulf Petrochemicals & Chemicals Association

    Ethylenerepresents

    nearly half of

    the GCC basic

    petrochemicals

    production

    capacity

    GCC Petrochemicals Capacity by Product, Share %

    Source: GPCA Petrochemicals Database, October 2012

    2007

    Total: 26.2 Million Tons

    47%

    32%

    11%

    7%

    2%

    1%

    Ethylene Methanol Propylene Benzene Mixed XylenesButadiene Toluene

    2011

    Total: 45.4 Million Tons

    49%

    22%

    17%

    6%

    5%1%

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

    Source: GPCA Petrochemicals Database, October 2012

    0%

    Butadiene

    0%

    TolueneMixed Xylenes

    50%

    27%

    Propylene

    16%

    Ethylene

    13%

    Benzene

    4%

    Methanol

    Basic Petrochemicals

    CAGR: 15%

    0

    20

    40

    60

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    28 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    GCC Fertilizers capacity by product, Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    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

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    29Gulf Petrochemicals & Chemicals Association

    GCC Fertilizers Capacity by Product, Share (%)

    2007

    Total: 18 .2 Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    2011

    Total: 27 .4 Million Tons

    55%

    42%

    3%

    46%

    42%

    12%

    Urea Ammonia Diammonium phosphate (DAP)

    GCC Fertilizers capacity growth by product, CAGR (%)

    Source: GPCA Petrochemicals Database, October 2012

    Fertilizers CAGR: 11%

    61 %

    11 % 6 %

    Diammonium

    Phosphate (DAP)

    Ammonia Urea

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    30 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    95%of the GCC polymers

    capacity in 2011

    Polyethylene andPolypropylene represent

    Regional polyethylene

    capacity expanded at CAGR

    12.4%

    Regional polypropylene

    capacity expanded at CAGR

    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

    Source: GPCA Petrochemicals Database, October 2012

    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 (%)

    Source: GPCA Petrochemicals Database, October 2012

    2007

    Total : 11.1 Million Tons

    67%

    28%

    4%

    1%

    2011

    Total: 20.4 Million Tons

    37%

    2%

    2%1%1%

    57%

    Polyethylene PP PVC PC PS PET

    2007 - 2011

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    31Gulf Petrochemicals & Chemicals Association

    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

    Source: GPCA Petrochemicals Database, October 2012

    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

    Total: 4.6 Million Tons

    2011

    Total: 9.9 Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    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

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    32 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    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 %

    Source: GPCA Petrochemicals Database, October 2012

    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)

    Source: GPCA Petrochemicals Database, October 2012

    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

    petrochemicals capacity

    Ethylene accountsfor

    11%of the regional

    petrochemicals capacity

    Urea accounts for

    10%of the regional

    petrochemicals capacity

    Polyethyleneaccounts for

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    33Gulf Petrochemicals & Chemicals Association

    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

    capacity expanded at CAGR

    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

    Total: 125.4 Million Tons

    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 %

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    34 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    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 (%)

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

    2007

    Total: 157.8 Million Tons

    2011

    Total: 169.7 Million Tons

    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

    Africa The rest of World

    Worldwide Urea capacity growth (CAGR 2007-2011)

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

    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

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    35Gulf Petrochemicals & Chemicals Association

    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

    Total: 94.6 Million Tons

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

    67%

    26%

    21%

    25%

    10%

    10%6%

    2%

    Europe Asia (excluding China)

    North America China

    GCC South America

    Africa The rest of World

    22%

    20%

    20%

    14%

    12%

    6%1%5%

    Worldwide Polyethylene capacity growth (CAGR 2007-2011)

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

    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

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    36 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    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 (%)

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

    2007

    Total: 174.1 million tones

    2011

    Total: 212.2 Million Tones

    China Asia (excluding China)

    Europe North America

    South America GCC

    Africa The rest of World

    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

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    37Gulf Petrochemicals & Chemicals Association

    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

    Total: 49.6 Million Tons

    2011

    Total: 85 Million Tons

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

    23%

    25%

    17%

    19%

    6%

    4%3%3%

    40%

    16%12%

    12%

    10%

    5%

    3%

    2%

    China Asia (excluding China)

    Europe North America

    South America GCC

    Africa The rest of World

    Worldwide Methanol capacity growth (CAGR 2007-2011)

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

    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

    capacity expanded at CAGR

    2007-2011

    4%GCC methanol capacity

    expanded at CAGR

    2007-2011

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    38 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    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 (%)

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

    2007

    Total: 88.1 Million Tones

    2011

    Total: 112.9 Million Tons

    24%

    28%

    24%

    14%

    3%

    5%

    2%

    Asia (excluding China) North America

    Europe China

    GCC South America

    Africa The rest of World

    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

    million tons in 2011

    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

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    39Gulf Petrochemicals & Chemicals Association

    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

    64.3million tons in 2011

    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%

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

    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 (%)

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

    67%

    2007

    Total: 47.3 Million Tones

    28%

    16%

    24%

    18%

    7%6%

    1%

    2011

    Total: 64.3 Million Tones

    27%

    23%17%

    12%

    12%

    6% 2%

    1%

    Asia (excluding China) ChinaEurope North America

    GCC South AmericaAfrica The rest of World

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    40 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    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 (%)

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

    2007

    Total: 20.7 Million Tons

    2011

    Total: 26.1 Million Tons

    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%

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

    19%

    China

    10%

    GCC

    4%

    Asia

    (excluding China)

    0%

    South

    America

    -5%

    Europe

    -6%

    North

    America

    0%

    Africa

    26.1Worldwide MEGcapacity reached

    million tons in 2011

    2007-20116%Worldwide MEG capacity

    expanded at CAGR

    29%GCC accounts for

    of the worldwide MEGcapacity

    10%

    GCC MEG capacityexpanded at CAGR

    2007-2011

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    41Gulf Petrochemicals & Chemicals Association

    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

    18.3million tons in 2011

    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

    Total: 18.7 Million Tones

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

    67%

    15%

    20%

    19%

    23%

    10%

    8%

    5%

    China GCC

    Europe North America

    Asia (excluding China) South America

    The rest of World

    2011

    Total: 18.3 Million Tones

    26%

    22%18%

    14%

    12%

    5%

    3%

    2%

    GCCMTBE capacity

    expended at CAGR

    (2007-2011)

    Worldwide MTBE capacity growth (CAGR 2007-2011)

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

    Worldwide MTBE CAGR: -1%

    15%

    China

    4%

    Asia

    (excluding China)

    2%

    GCCEurope

    -10%

    The rest of

    World

    -11%

    South

    America

    -13%

    North

    America

    -2%

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    42 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    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 (%)

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

    2007

    Total: 59.9 Million Tones

    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%

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

    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

    million tons in 2011

    2007-2011

    61%

    GCC DAP capacityexpanded at CAGR

    5%GCC accounts for

    of the worldwideDAP capacity

    2007-2011

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    43Gulf Petrochemicals & Chemicals Association

    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

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

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    44 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    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

    Source: GPCA Petrochemicals Database, October 2012

    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%

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    45Gulf Petrochemicals & Chemicals Association

    of GCC petrochemicalscapacity in 2011

    Saudi Arabiaaccounts for

    67%

    GCC Petrochemicals Capacity, Country Share

    2007

    Total: 73 Million Tons

    2011

    Total: 121 Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    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%

    Source: GPCA Petrochemicals Database, October 2012

    26%

    17%16% 15%

    12%

    2%

    UAE Oman Kuwait Qatar Saudi Arabia Bahrain

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    46 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    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

    Source: GPCA Petrochemicals Database, October 2012

    Saudi Arabia Qatar Oman Kuwait UAE Bahrain

    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

    Total: 26.4 Million Tons

    2011

    Total: 45.4 Million Tons

    Source: GPCA Petrochemicals Database, October 2012

    78%

    8%

    5%

    5% 2%

    2%

    69%

    9%

    8%

    7%

    6%1%

    Saudi Arabia Qatar Oman Kuwait UAE Bahrain

    Saudi Arabia accounts forthe majority of the basic

    petrochemicals capacity with

    69%of the regions total

    23%year-on-year increase

    of basic petrochemicalscapacity in 2011

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    47Gulf Petrochemicals & Chemicals Association

    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)

    Source: GPCA Petrochemicals Database, October 2012

    GCC CAGR: 15%

    48%

    UAE Kuwait Oman

    18%

    Qatar

    11%

    Saudi Arabia

    3%

    Bahrain

    27% 25%

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    48 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    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

    Source: GPCA Petrochemicals Database, October 2012

    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

    Saudi Arabia Qatar Oman Kuwait UAE Bahrain

    CAGR:11%

    36%year-on-year increase of

    the GCC fertilizers capacityin 2011

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    49Gulf Petrochemicals & Chemicals Association

    The top three producersof fertilizers in the

    GCC are

    SaudiArabia,Qatar

    and

    OmanGCC Fertilizers Capacity Growth, CAGR (2007-2011)

    Source: GPCA Petrochemicals Database, October 2012

    15%

    Qatar

    14%

    Oman

    12%

    Saudi Arabia

    1%

    Bahrain

    0%

    UAE

    0%

    Kuwait

    GCC CAGR: 11%

    GCC Fertilizers Capacity by Country, Share (%)

    Source: GPCA Petrochemicals Database, October 2012

    Saudi Arabia Qatar Oman Kuwait UAE Bahrain

    2007

    Total: 18.2 Million Tons

    2011

    Total: 27.4 Million Tons

    39%

    24%

    16%

    9%

    7%

    5%

    40%

    28%

    17%

    6%

    5% 4%

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    50 GCC Petrochemicals & Chemicals Industry Facts & Figures 2011

    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

    Source: GPCA Petrochemicals Database, October 2012

    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 (%)

    Source: GPCA Petrochemicals Database, October 2012

    2007

    Total: 4.6 Million Tons

    12%

    88%

    2011

    Total: 9.9 Million Tons

    89%

    6%5%

    Saudi Arabia Qatar Kuwait

    2007-2011

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    51Gulf Petrochemicals & Chemicals Association

    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

    Source: GPCA Petrochemicals Database, October 2012

    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