Bahrain’s chemicals sector boosted by $494 million investment surge

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

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Bahrain has steadily built its reputation as a key player in the chemicals industry, attracting foreign investments over the past two decades and cementing its place in the regional market.

According to a report from the Arab Investment & Export Credit Guarantee Corporation (Dhaman), Saudi Arabia leads the Arab world in petrochemical investments, with a staggering $68.7 billion.

The report projects that by the end of 2024, the region’s production capacity in the sector will reach 164.4 million tonnes annually, with expectations of an increase to 219 million tonnes by 2028.

By the close of 2024, six core products, including ammonia and ethylene, are anticipated to account for over 71% of the region’s output.

Meanwhile, production capacity for key materials such as ethylene, polyethylene, and polypropylene is set to expand by 2028.

Trade In 2023, Bahrain’s chemicals trade reached $2.8 billion, with $1.7 billion in exports and $1.1 billion in imports.

During the first half of 2024, 13 new projects were launched, amounting to $494 million in investments and creating 1,100 jobs.

Across the wider Arab world, 461 foreign direct investment projects in the chemicals sector were initiated between January 2003 and June 2024, totalling $163.2 billion and creating over 100,000 jobs.

Largest investor The United States emerged as the largest investor, with 85 projects worth $56.2 billion, representing 34% of the total.

In 2023, chemical exports from Arab countries reached $139.3 billion, with five Gulf nations and Egypt accounting for 86% of this figure.

Plastic products dominated the export market at $53.6 billion, while pharmaceuticals were the top import, valued at $30.5 billion.