Middle East Specialty Chemicals Market Research Report: Forecast (2024-2030)

Market Definition

Specialty chemicals are used to enhance the characteristics of commodity materials such as rubber, textiles, and polymers, these are also known as performance chemicals. Various applications of these chemicals across different industrial verticals include biocides, hydraulic fluid additives, water & wastewater treatment plants, contact Gaylord chemicals, pharmaceuticals, personal care, & food additives, and many more.

Market Insights & Analysis: The Middle East Specialty Chemicals Market (2024-30):

The Middle East Specialty Chemicals Market size was valued at around USD 78 billion in 2023 and is estimated to grow at a CAGR of around 4.8% during the forecast period, i.e., 2024-30. The market is growing rapidly due to increasing demand from various industries such as automotive, construction, aerospace, food and beverage, agriculture, electronics, pharmaceutical, textile, and personal care. The expansion of the market is supposed to be uplifted primarily by the various ongoing & upcoming wide-ranging manufacturing activities across different countries in the region, in line with their goal of introducing economic heterogeneity and focusing on improving the agriculture, pharmaceutical, and aerospace i.e., increasing the demand for specialty chemicals.

In addition, huge investments in the development of infrastructure across countries like UAE, Saudi Arabia, & Qatar, among others, also create growth opportunities for the big players to expand their production, improve product portfolio, and broaden their reliability across the region, and to escape from dependability on some big economies.  Also, compared globally, the market is not so flourished, North America, Western Europe, and China are among the key players, and the Middle East is in its emerging state, having the potential to grow rapidly and create its image. Major investment options are available in the region that make them more suitable for future growth opportunities.

Moreover, the substantial gas & oil production capabilities entangled with the growing focus on boosting pharmaceutical, agricultural, construction, coatings & paper trading, food processing & transportation, among others, are also playing an important role in revitalizing the demand for specialty chemicals and thereby expanding the market through 2030. The Middle East economies are mostly reliant on oil & gas i.e., approaching quickly enlarging industrial units, manufacturing plants, etc., and playing a vital role in driving the demand for Specialty Chemicals in the region. Enhanced product performance & improved operational efficiency in industries are among the benefits of specialty chemicals, these would further invigorate their adoption in the years to come.

Middle East Specialty Chemicals Market Driver:

Growing Demand from End-Use Industries Driving Market Growth – The expansion of different end-use industries, which include construction, electronics, medical, automotive, and packaging is raising the demand for specialty chemicals. Almost every industrial sector consumes specialty chemicals. So, the demand for specialty chemicals is increasing and will increase in the future as well due to increasing consumer-driven industries. The automotive industry is one of the biggest consumers of specialty chemicals. A few automobile parts, including coatings, tires, and adhesives use specialty chemicals in their manufacturing to enhance their durability and performance.  As these sectors are continuously innovating and developing the demand for specialty chemicals will keep on increasing in the region.

Middle East Specialty Chemicals Market Opportunity:

Economic Diversification Plans to Offer Lucrative Growth Opportunities – Several countries in the Middle East are regulating an economic diversification plan, with their governments actively participating in infrastructure development and making insightful investments in areas such as construction, pharmaceuticals, tourism, mining, agriculture, aerospace, automotive, personal care, and textile. This results in an increasing need for specialty chemicals across various end-user industries. Where specialty chemicals can play an important role in the growth, showing growth prospects for the key players in the Middle East Specialty Chemicals Market until 2030. Industrial diversification initiatives in the Middle East are also being pursued by the regional governments and growth underway in local manufacturing capabilities has the potential growth opportunities for the chemical industry during the forecast period.

Middle East Specialty Chemicals Market Challenge:

Unpredictable Raw Material Costs & Shortages Restraining Market Growth – Possible constraints that the specialty chemical industry may encounter include fluctuating raw material costs, uncertainty of the production from the suppliers, and scarcity of raw materials, which is also becoming a challenge for good functioning of the supply chain. And the disruption in the supply chain makes the production process difficult. Along with it the increasing inflation in the region is adding to the higher costs of raw materials and restraining the growth of the market, for instance,

• According to the International Monetary Fund (IMF) the annual inflation rate, average consumer prices in the region in 2024 is 10.7, which is a lot higher than the standard norms of a healthy inflation rate i.e., 2-3% for any economy.

This rate of inflation is affecting the costs of raw materials and disturbing the specialty chemicals market as well.

Middle East Specialty Chemicals Market Trend:

Growing Demand for Concrete Additives Pushing the Demand for Specialty Chemicals in the Region – The rising demand for concrete additives in the region to improve the characteristics of concrete, such as strength, durability, and setting time acts as one of the main factors increasing the demand for specialty chemicals in the middle east. As the construction industry is growing and expanding continuously in the region, the demand for specialty chemicals in concrete additives is increasing with it. The increasing focus on investments in the circular economy is the factor behind the growing initiatives in the construction industry, which is raising the demand for concrete additives and specialty chemicals. Thus, this emerging trend is changing market dynamics and showing a positive outlook for future growth & expansion.

Middle East Specialty Chemicals Market (2024-30): Segmentation Analysis

The Middle East Specialty Chemicals Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the regional level. Based on the analysis, the market has been further classified as:

Based on the Type:

• Pharmaceuticals
• Mining
• Water & Waste Water Treatment
• Construction Chemicals
• Oil Field Chemicals
• Personal Care
• Food Additives
• Others

In recent years, the biggest share of the Middle East Specialty Chemicals Market was taken up by the construction chemicals segment, and it is estimated that this trend will go on during the forecast period as well. This is mainly due to the increasing demand to eliminate significant air inclusions on the surface of concrete within the building and construction industry.

Further, the increasing number of building initiatives, along with the increasing influx of foreign direct investments in the construction industry due to the rising presence of international corporations and well-known brands, as well as the growing tourism, are expected to have a favorable impact on the need for construction chemicals and propel the market growth in the coming years.

Middle East Specialty Chemicals Market (2024-30): Regional Projections

Geographically, the Middle East Specialty Chemicals Market expands across:

• Saudi Arabia
• The UAE
• Qatar
• Kuwait
• Oman
• Others

From all of these, the UAE is expected to remain a prevailing market for Specialty Chemicals during the forecast period. The rapidly growing developments across different industries like construction, oil & gas, water & wastewater treatment sectors, and mining, among others, i.e., excelling the demand for specialty chemicals and expanding the market.

In addition, the growing number of greenfield investments is leading to increased construction of new facilities, thereby driving the demand for construction chemicals such as emulsifiers and corrosion inhibitors, which is having a fruitful impact on market size & volume. Furthermore, the increasing influx of tourism & migrants is expected to play a crucial role in boosting the market growth in the UAE in the coming years.

Middle East Specialty Chemicals Industry Recent Development:

• 2024: Evonik Industries AG signed an MoU at QEF to explore investment opportunities in Qatar. Their common aim is to explore particular investment opportunities focused on balanced solutions for energy transition.
• 2023: Sadara Chemical Company announced to begin supplies to PlasChem Park. It is a joint venture by Saudi Aramco and Dow Chemical Co. This joint venture has announced the full operation of its ethylene oxide and propylene oxide pipeline transportation system.

Gain a Competitive Edge with Our Middle East Specialty Chemicals Market Report

1. Middle East Specialty Chemicals Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. The Middle East Specialty Chemicals Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.