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Currently, affected by factors such as trade headwinds, oversupply, and weak end-demand, the global petrochemical industry remains sluggish, trapped in a four-year downward cycle. Yet Middle Eastern petrochemical producers have expanded against the odds, continuing to move downstream and accelerating their transition toward a diversified portfolio of high-value-added products, thereby establishing themselves as key suppliers in the global markets for olefins, polymers, and raw materials. According to data from the Gulf Petrochemicals and Chemicals Association (GPCA), by 2028, the total petrochemical production capacity of GCC member states is set to increase by over 20 million tons as a result of new projects and expansions. Saudi Arabia and the UAE are the key drivers of growth. Between 2007 and 2023, the petrochemical production capacity of these two countries grew by 127% and 125% respectively, experiencing rapid expansion. Currently, the ethylene production in the GCC region accounts for 10.4% of the global total, with the petrochemical industry being the second-largest manufacturing sector in the region, its annual output exceeding 108 billion dollars. The combined output of GPCA member companies accounts for over 95% of the region’s total chemical industry output. According to S&P Global’s Chemical Economics Handbook (CEH), the petrochemical industry in the Middle East maintains the strongest cost competitiveness globally thanks to its advantage of low-cost raw materials, with its facilities generally featuring large scale, modern equipment, and integrated upstream and downstream operations. Although large-scale development in the Middle East began at the beginning of the 21st century, the production capacity of basic chemicals has grown rapidly; by 2024, the region’s capacity for basic petrochemicals reached 85.6 million tons, accounting for nearly 11% of the global total. Among these, ethylene accounted for 41%, methanol for 30%, and propylene for 15%. Currently, investment in the petrochemical industry in the Middle East is characterized by a slowdown in growth rates but an improvement in quality. Compared to the first wave of investment enthusiasm, the rate of investment has declined in recent years; however, the projects that are about to be completed are of world-class scale and focus on high-value industrial chains. These projects are concentrated in the value chains related to ethylene, propylene, and their derivatives, serving as the key drivers of capacity expansion. The three flagship projects are located in the UAE, Saudi Arabia, and Qatar respectively; their core units are large-scale steam cracking units, with an ethylene production capacity ranging from 1.5 million tons per year to 2.1 million tons per year. Borealis’ polyolefins facility at Borealis 4 in Ruwais, Abu Dhabi, is set to go into operation; the completion rate is currently over 90%, with the first unit expected to be operational by the end of 2025. The core of this project is an ethane cracking unit with a capacity of 1.5 million tons per year; once it is operating at full capacity by the end of 2026, it will enable the production of 1.4 million tons per year of polyethylene. Additionally, cross-linked polyethylene and hexene-1 production units will be installed to enhance the product portfolio. After full production capacity is achieved, Bolu Polyolefins’ total production capacity will rise to 6.4 million tons per year, with the potential to exceed 6.6 million tons per year by 2028. As a joint venture between Abu Dhabi’s ADNOC and Norsk Hydro, Borouge is working on merging with Norsk Hydro to form Borouge International Group (BGI), with completion expected in the first quarter of 2026; at that time, the production capacity for polyolefin grades will reach 13.6 million tons per year. The large petrochemical complex in Ras Laffan, Qatar, is scheduled to come online by the end of 2027. It was built as a joint venture between Qatar Energy and Chevron Phillips Chemical, with a total investment of $6 billion; Qatar Energy holds a 70% stake while Chevron Phillips Chemical holds a 30% stake. The core of the project is an ethane cracking unit with a capacity of 2.1 million tons per year; once operational, it will become the largest ethylene production facility in the Middle East, with raw materials supplied by the northern gas fields. The facility will supply raw materials to two high-density polyethylene (HDPE) plants, resulting in a total production capacity of 1.68 million tons per year. Construction on the project began in February 2024, and once operational, Qatar Petrochemical’s total production capacity will increase to 14 million tons per year. The ethylene production capacity will rise by over 40%, while polymer production will jump from 2.6 million tons per year to around 4.3 million tons per year. The Saudi petrochemical industry is making frequent moves to expand. The Amiral expansion project of Aramco-Dow Refining & Petrochemicals is scheduled to be completed in 2027, with a total investment of $11 billion. The core of this project is a cracking unit capable of processing 1.65 million tons of mixed feedstock per year; it will operate in conjunction with the existing refinery. The project also includes two units for producing high-density polyethylene at a capacity of 500,000 tons per year, as well as production lines for products such as butadiene and MTBE. The ownership structure is as follows: Aramco holds 62.5% of the shares, while Dow Energy holds 37.5%. SABIC plans to increase the production of crude oil-derived chemicals from the current 1.8 million barrels per day to 4 million barrels per day in the long term. Its chemical subsidiary SABIC’s new 1 million tons per year MTBE plant came online ahead of schedule in October 2025; it is the largest of its kind in the world and will significantly increase the capacity for fuel additives. SABIC is accelerating its expansion into high-growth markets. In November 2024, it established a production facility for thermoplastic resins in Singapore, focusing on high-end specialty plastics for high-tech sectors such as electric vehicles, telecommunications, and healthcare. The Fujian petrochemical complex project in China, to which significant investment has been made—amounting to $6.4 billion—has reached 87% completion; it is scheduled to go into operation in the second half of 2026. The facility will be equipped with an annual capacity of 1.8 million tons for the cracking of mixed raw materials, as well as 16 downstream processing units, producing a range of products including ethylene glycol and polyethylene.