Middle East And Africa Chemical Distribution Market: Growth Prospects 2024-2032
Triton’s analysis estimated that the Middle East and Africa chemical distribution market is set to garner revenue at 4.92% CAGR over the forecast years 2024-2032.
Countries in the Middle East hold more than half of the world’s crude oil reserves, and the oil sector contributes more to the regional GDP than any other industry. The Gulf Cooperation Council nations contribute nearly 65% of the region’s GDP. This growth in GDP is led by oil and gas production and related industries, petrochemicals, midstream refining operations, and metals and mining, all of which require various types of chemicals. Thus, government initiatives to develop the regional chemical industry, along with significant investments by chemical companies, are creating opportunities for growth in the chemical distribution market.
Saudi Arabia leads with the highest market share, accounting for $3.11 billion in 2023.
Saudi Arabia’s economy is heavily reliant on the oil and gas sector, wherein oil accounts for around 40% of the country’s GDP.
According to IEA’s Oil Market Report, crude oil production averaged 8.99 million barrels per day as of February 2024, which utilizes a wide range of specialty chemicals, catalysts, and other chemical products.
Thus, the dominance of this sector ensures a promising scope of chemical distribution services for the production, refining, and processing of oil and gas.
Chemical Distribution Market Trends in the United Arab Emirates
Globally, the UAE ranks 12th in the World Bank’s Logistics Performance Index (LPI) 2023, reflecting its high-quality infrastructure and reliable logistics services, which are essential for the efficient distribution of chemicals. Based in Dubai, Jebel Ali Free Zone (JAFZA) is one of the largest free zones in the world, hosting over 530 chemical companies. This strategic advantage attracts several companies like Amarak Chemicals to set up distribution centers in the country, thereby enhancing the chemical distribution network.
The market segments for chemical distribution consist of end-use. This segment includes specialty chemicals and commodity chemicals. The latter has an important role in several industrial manufacturing processes, like producing oils and lubricants, industrial coatings, paper manufacturing, and additives in paints.
The notable companies in the chemical distribution market include Safic Alcan, Univar Solutions Inc, Caldic BV, Brenntag Se, Helm Ag, Azelis Group NV, Barentz, Omya International Ag, Jebsen & Jessen Ingredients, Ter Chemicals Gmbh & Co Kg, Manuchar Nv, and ICC Industries Inc.
Safic Alcan, based in Paris La Défense, France, is a leading distributor of specialty chemicals. The company develops and supplies a diverse range of polymers, coatings, materials, and additives for industries such as rubber, thermoplastics, adhesives, polyurethane, cosmetics, lubricants, detergents, and pharmaceuticals. Safic Alcan operates through a network of 34 offices across Europe, China, Turkey, the Middle East, Brazil, the US, Canada, and Mexico.
Latest from the Company:
A new partnership, Safic-Alcan and Southern Chemicals will jointly exhibit a comprehensive range of high-performance solutions for an event named Coatings for Africa 2024 (June 19th to 21st) at the Sandton Convention Centre in Johannesburg, South Africa.