The United Arab Emirates Methanol market has reached nearly 200 thousand tonnes in 2023 and is expected to grow at a CAGR of 3.2% during the forecast period until 2034. On March 3, 2022, Abu Dhabi National Oil Company (ADNOC) inked a deal with Proman, a leading global methanol producer, to establish the United Arab Emirates' (UAE) inaugural large-scale methanol production facility at the TA’ZIZ Industrial Chemicals Zone in Ruwais, Abu Dhabi. Per the agreement, Abu Dhabi Chemicals Derivatives Company RSC Ltd. (TA'ZIZ) and Proman will collaborate on constructing a facility converting natural gas to methanol with a projected annual capacity of up to 1.8 million tonnes.
Methanol serves as a vital component in the production of formaldehyde, acetic acid, and other essential chemicals in the chemical and petrochemical industries. In the automotive sector, methanol functions as a fuel additive, enhancing engine performance and reducing emissions. Within the chemical sector, methanol acts as a crucial precursor for formaldehyde production, which finds extensive applications in various industries for manufacturing plastics, resins, adhesives, and coatings. Formaldehyde further contributes to the synthesis of polymers like phenol-formaldehyde, urea-formaldehyde, and melamine-formaldehyde resins, essential for engineered wood products, laminates, and moulded plastics. Additionally, formaldehyde-based resins play a pivotal role in adhesive formulations for bonding wood, laminates, and composite materials in construction and furniture manufacturing.
In the United Arab Emirates (UAE), the demand for methanol is witnessing rapid expansion, largely driven by its critical role in producing various chemicals such as formaldehyde, and methyl tert-butyl ether (MTBE). Formaldehyde, a key derivative of methanol, acts as a foundational component across industries including construction, automotive, and healthcare, thus significantly contributing to the heightened demand for methanol. The construction sector in the UAE presents promising growth opportunities, supported by government-led initiatives like the Energy Strategy 2050, the Sheikh Zayed Housing Program, and the Dubai Tourism Strategy. These initiatives aim to boost investments in diverse segments such as residential, energy, utility, infrastructure, and commercial construction projects. Consequently, the surge in construction activities is anticipated to fuel the demand for formaldehyde in the foreseeable future, thereby further propelling the overall demand for methanol in the UAE market. As of 2024, the UAE does not have any methanol production facilities. UAE relies on imports to meet its demand for methanol, primarily from Saudi Arabia, Qatar, and Iran. However, post-commissioning of the Methanol production facility at the TA’ZIZ Industrial Chemicals Zone in Ruwais, Abu Dhabi, the dependence of UAE on these imports will reduce and will put forward UAE ahead in the global Methanol market. Thus, United Arab Emirates Methanol market is likely to reach roughly 290 thousand tonnes in 2034.
Based on the end-user industry, the United Arab Emirates Methanol market is segmented into Formaldehyde, MTBE, Gasoline Blending, Others. Among these, MTBE industry accounts for the largest market share. This industry held a portion of about 40% in the year 2023.
Major players in the Middle East & Africa Methanol market are Saudi Arabia Basic Industries Corporation (SABIC), Mitsubishi Gas Chemical, NPC-Zagros, Kaveh Methanol Petrochemical, Marjan Petrochemical Company, Sabalan Petrochemical Company, Bushehr Petrochemical Complex, Kimia Pars Middle East Company, Apadana Petrochemical Persian Gulf, Methanex Corporation, Salalah Methanol, Oman Methanol Company, Atlantic Methanol, QAFAC, and Others.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2023
Estimated Year: 2024
Forecast Period: 2025-2034
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Objective of the Study:
•To assess the demand-supply scenario of Methanol which covers production, demand and supply of Methanol market in United Arab Emirates.
•To analyse and forecast the market size of United Arab Emirates Methanol
•To classify and forecast United Arab Emirates Methanol market based on end-use and regional distribution.
•To examine competitive developments such as expansions, mergers & acquisitions, etc., of Methanol market in United Arab Emirates.
To extract data for United Arab Emirates Methanol market, primary research surveys were conducted with Methanol manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for United Arab Emirates Methanol market over the coming years.
ChemAnalyst calculated Methanol demand across the United Arab Emirates region by analysing the volume of Methanol consumed by the end-user industries and the forecast is calculated based on the growth rate of end-use industries. ChemAnalyst sourced these values from industry experts and company representatives and externally validated them by analyzing the historical sales data of respective manufacturers to determine the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
•Methanol manufacturers and other stakeholders
•Organizations, forums and alliances related to Methanol distribution
•Government bodies such as regulating authorities and policy makers
•Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Methanol manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years, thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, United Arab Emirates Methanol market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2023
200 thousand tonnes
Market size Volume by 2034
290 thousand tonnes
Growth Rate
CAGR of 3.2% from 2024 to 2034
Base year
2023
Estimated Year
2024
Historical Data
2015 – 2022
Forecast period
2025 – 2034
Quantitative units
Demand in thousand tonnes and CAGR from 2024 to 2034
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Foreign Trade, Company Share, Manufacturing Process.
Segments covered
By End-Use: (Formaldehyde, MTBE, Gasoline Blending, Others)
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Member - Board of Directors
Osaka Gas Co. Ltd
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What was the size of United Arab Emirates Methanol market in terms of volume in 2023?
Ans:
The size of United Arab Emirates Methanol market has grown significantly in the historic period and reached approximately 200 thousand tonnes in 2023.
Q2.
Which industry is leading as the leading end-user industry of United Arab Emirates Methanol market?
Ans:
MTBE industry is the leading end-user industry of United Arab Emirates Methanol market.
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