Top 10 petrochemicals players in the Middle East

Of course, the region is filled with many petrochemical professionals and executives who have contributed to making the Gulf the hottest destination on the planet for those with designs on downstream success. Whilst these industrious individuals are making serious waves on the global stage, we felt it necessary to distil from the pool the 10 names you need to know, as their decisions define the industry’s regional growth.

For the first time, we count down the Gulf’s most influential players in the business. For pictures of the people featured on the list, please click on more images.

1. Saud bin Abdullah bin Thenayan Al-Saud  – chairman of SABIC 
2. Mohamed Al Mady – vice-chairman and CEO SABIC
3. Dr Abdulwahab Al-Saadon – secretary general GPCA
4. Hamad Al-Terkait, president and CEO Equate
5. Dr Mohamed Yousef Al-Mulla – general manager Qapco 
6. Abdulaziz Al-Hajri – CEO Borouge
7. Abdul Rahman Jawahery – CEO Gulf Petrochemical Industries
8. Ahmad Al-Ohali – CEO Saudi International Petrochemical Company (Sipchem)
9. Salah Al Nuzha – president Tasnee Petrochemical Company
10. Maha Mulla Husain – chairman and managing director Petrochemicals Industries Co

1. Saud bin Abdullah bin Thenayan Al-Saud – chairman of SABIC

Prince Saud has been Chairman of SABIC since 2003. He is also the Chairman of the Royal Commission for the emerging global downstream hubs at Jubail and Yanbu.

SABIC is one of the world’s leading manufacturers of chemicals, fertilisers, plastics and metals. It supplies these materials to industries worldwide, which use them to make the products on which the world has come to depend.

SABIC is one of the largest and most reliably profitable public companies in the Middle East, despite posting its first and only ever loss this year. Its success is the result of a focus on three things: investment in local partnerships, the best research and technology programs, and an ambitious global growth strategy.

Prince Saud graduated from King Saud University in 1977 with a degree in Civil Engineering, since then has held various government posts. He sits on a huge suite of board positions, the highlights being:

Chairman of the Board of Directors, Utility of Water and Electricity Company in Jubail and Yanbu.
Engineer at the Riyadh Municipality.
Director General for Survey and Drawings at Riyadh Municipality.
Director General for Operations and Maintenance at the Riyadh Municipality.

2. Mohamed Al Mady – SABIC vice-chairman and CEO

Mohamed Al-Mady has been vice chairman and chief executive officer of Saudi Basic Industries Corporation (SABIC) since July, 1998.  He joined SABIC in 1976 with a Master’s Degree in Chemical Engineering from the University of Wyoming, USA.

Al-Mady was the man at the helm when SABIC announced that it had reached agreement for the acquisition of GE Plastics, for an eye-watering purchase price of US$11.6 billion.

“As a global operating company, SABIC has a long-term, strategic interest in the people, communities, customers, products, plants and technology of GE Plastics,” said Mr. Al-Mady, when making the announcement.  “This acquisition represents another important step in SABIC’s growth and diversification to become one of the world’s leading manufacturing companies.”

He has held various key positions within the company.

Al-Mady also holds the following additional positions:
Chairman and Managing Director, Saudi Arabian Fertilizer Company (SAFCO).
Chairman, SABIC Europe B.V. Supervisory Board.
Chairman, SABIC Innovative Plastics Supervisory Board.
Fellow, London Business School.
Member, International Business Council, World Economic Forum.
Chairman, Gulf Petrochemicals and Chemicals Association (GPCA).

3. Dr Abdulwahab Al-Saadon – GPCA secretary general

Dr  Abdulwahab Al-Sadoun assumed his job as the Secretary General, Gulf Petrochemical and Chemicals Association (GPCA) on April 01, 2009. A 1990 PhD graduate of the University of London in Industrial Chemistry, Dr. Al-Sadoun started his professional carrier with SABIC as a Senior Researcher in the R&D Center (Riyadh, Saudi Arabia) where he worked from July 1990 to October 1995. He then joined the Qatar-based Gulf Organization for Industrial Consulting (GOIC) in January 1996 where he worked as a Petrochemical Expert in the Industrial Projects Department until June 1997. In July 1997, he was appointed Director of the Industrial Information & Coordination Department at GOIC.

In November 2001, Al-Sharq Plastic Industries Co. (Riyadh, Saudi Arabia) appointed Dr. Al-Sadoun as the Vice President until November 2003. In December 2003, he founded “AWS Industrial Consulting” and acted as its President until December 2004 when he joined the Saudi Arabian General Investment Authority (SAGIA) and acted as the Director-General of the Energy Sector till January 2008 when he co-founded PetroBaas, a project development company with focus on downstream petrochemical and allied industries and acted as its president till February 2009.

Al-Sadoun is a graduate of the General Management Program (GMP3, 2007), Harvard Business School, Harvard University.

4. Hamad Al-Terkait – Equate president and CEO and vice-chairman of the Gulf Petrochemicals and Chemicals Association.

Hamad Al-Terkait is the man in charge of Kuwait’s largest downstream company, Equate. The company’s production last year exceeded over 1.1 million tonnes of polyethylene and ethylene glycol, which is more than in previous years. 2008 also witnessed the safe launch of commercial operations at the new Ethylene Glycol and Ethylene Units at Olefins II project, and as such Equate’s production capacity has almost doubled under Al-Terkait’s charge. Remaining projects, such as styrene and Aromatics, are on the way.

Equate was established in 1995 and began production in November 1997.

The company’s shareholders are Dow Chemical Company (42.5%), PIC (42.5%), Boubyan Petrochemical Company (9%) and Qurain Petrochemical Industries Company (6%).

During its recent Board elections, the GPCA renewed Al-Terkait’s appointment as vice chairman for a term of three years, joining such industry heavyweights as Sabic CEO Mohammad Al-Mady, who continues as chairman of the board of directors, with the CEO of Abu Dhabi Polymers (Borouge) Abdulaziz Al-Hajri as treasurer.

Upon his re-election, Al-Terkait said, “The petrochemical industry plays a critical role in global growth and development and the GPCA has several committees handling various industrial matters which are beneficial not only to petrochemical producing companies, but also to each and every company that does business with petrochemical and chemical commodities.”

Al-Terkait, was a founding member of GPCA, and has been the association’s vice chairman since its inception in March 2006.

5. Dr Mohamed Yousef Al-Mulla – Qapco general manager

ArabianOilandGas.com met Dr Al-Mulla at the Qapco headquarters in Mesaieed Industrial City in Qatar earlier this year. The general manager of one of Qatar Petroleum’s largest subsidiaries was in a buoyant mood despite the downturn.

“The financial crisis has hit everybody. It started with real estate, then banks, and huge financial institutions. When it hit the petrochemical sector we were already planning for it. We have a five year strategy plan for the company, and we know how to manage and adapt to the situation,” said Al Mulla.

QAPCO was established in 1974 as a joint multinational venture to utilise the associated and non-associated Ethane gas from petroleum production in line with the industrialisation plan of the State Qatar. The company is located in the Mesaieed Industrial City (MIC), and produces fertilisers, steel, refined petroleum products and natural gas liquids.

QAPCO’s product base is Ethylene and LDPE. Solid sulphur is generated as a by-product in the process. The required feedstock, Ethane gas, is supplied by the state-owned Qatar Petroleum (QP) for the production of Ethylene, a significant part of which is then used in the production of various grades of LDPE, marketed under the ‘LOTRENE’ brand name.

QAPCO built its vision on a solid foundation of state-of-the-art technology, which will make possible a succession of new generation products. Its manufacturing facilities consist of an Ethylene plant with a designed annual capacity of 720,000 MT, two LDPE plants with a total annual capacity of 360,000 MT and a Sulphur plant with an annual rated capacity of 70,000 MT besides the self-sufficient utilities, plants and other offsite and auxiliary facilities. The capacity of both Ethylene and LDPE plants increased to these levels as a result of expansion projects undertaken by the Company during 1993-2007.

6 Abdulaziz Al-Hajri – Borouge CEO

Abdul Aziz Abdulla Al Hajri formally took charge at Borouge in 2007. 

Al Hajri has 20 years of experience in production and management of production facilities projects. He most held the position of assistant general manager, technical in Gasco, one of the ADNOC Group of Companies

Blessed with gas reserves of 214 trillion cubic feet (tcf), the UAE is ranked the fifth largest gas holder in the world after Russia, Iran Qatar and Saudi Arabia. The Emirate of Abu Dhabi controls around 90% of the reserve with 198.5bn tcf followed by Sharjah with 10.7bn tcf, Dubai with 4bn tcf and Ras Al Khaimah 1.2bn tcf of gas.

This abundance of feedstock has led Abu Dhabi to establish a two geant petrochemical companies, Abu Dhabi Polymers Company (Borouge) and Ruwais Fertliser Industries (Fertil).

Historically, there has been little incentive to develop a local petrochemicals industry due to the small population. Aside from the urea-based fertiliser production at Ruwais Fertiliser Industries (Fertil), set up in 1982, it was in 1998 that Abu Dhabi entered the basic chemicals industry with the creation of Abu Dhabi Polymers Company (Borouge).

The first phase of Borouge, a joint venture of Vienna-based Borealis and state-owned Abu Dhabi National Oil Company (Adnoc), came on stream in 2002 and was an immediate success. Using cheap ethane feedstock to produce 450 000 tonnes a year (t/y) of polyethylene (PE), the complex was expanded in 2005 to increase production to 600 000 t/y.

Speaking to ArabianOilandGas.com, Abdulaziz Alhajri, shared his view about the vision of his company.

 “Borouge aims to be the clear market leader in the Middle East and Asia in the infrastructure market sector, specifically in pipe systems and wire and cable applications, and a strong player in the automotive and advanced packaging plastics businesses. Our company mission is to become the leading provider of innovative plastics that create value for society,” Alhajri  explains.

“We are therefore committed to expanding our operations to ensure a long term commitment to our customers, with a clear focus on operational excellence and safety at all times. Borouge’s manufacturing capacity is 600 000 tonnes of polyethylene per year (t/y). The current ongoing Borouge 2 expansion project is increasing this capacity to two million t/y and includes the production of polypropylene,” Alhajri adds.

Besides the Borouge 2 expansion, the company has started the third expansion project Borouge 3. “Recently we announced the successful completion of a feasibility study and the decision to enter the FEED (front-end engineering and design) stage of the Borouge 3 project, a further commitment to our customers and the expansion of our operations to meet their growing demands in the next decade.”

He adds that the Borouge 3 project will include the construction of an ethane cracker, second generation Borstar  polypropylene and polyethylene units, an LDPE unit and a Butene unit, and related off-site utilities and marine facilities.

All these new expansions aim to increase the polyolyfins capacity in the UAE. Abu Dhabi has launched the Polymers Park (ADPP) to handle the new capacity, which is expected to be  the world’s biggest plastics conversion cluster, in Mussafah. It will consume between 1m and 2m tonnes per year of polymers, mostly polyethylene (PE) and polypropylene (PP). “We are thereby expanding our polyolefins capacity by approximately 2.5 million tonnes per year  by the end of 2013, reaching a total capacity of 4.5 million tonnes of polyolefins per year,” says the CEO.

7. Abdul Rahman Jawahery – CEO of Gulf Petrochemical Industries

Abdul Rahman Jawahery is a man in a buoyant mood. Whilst industry headlines read doom and gloom, his jovial manner and air of optimism are a refreshing break with the norm.

Yet responsibility weighs heavy on his shoulders. Sitting at the helm of one the region’s largest downstream companies, as the CEO of Gulf Petrochemicals Industries Co (GPIC), he has the job of steering a ship owned in equal part by the Government of the Kingdom Bahrain, Saudi Basic Industries Corporation (SABIC), and Petrochemical Industries Company (PIC), Kuwait. And it is stormy weather looming on the horizon.

The company is at the forefront of the regional petrochemical scene, and is one of the largest regional manufacturers of basic petrochemicals and fertiliser. GPIC uses natural gas which is readily available in Bahrain as a feedstock for the production of 1.4 million tonnes of product.

The production split is roughly made up of 1200 tonnes daily of ammonia (400 000 tonnes annually), 1700 tonnes daily of urea (600 000 tonnes annually) and 1200 tonnes of methanol (400 000 tonnes annually).

Jawahery is the chairman of the technical committee for the international fertiliser association, and a board member of the Arab Fertiliser Association.

Gulf Petrochemical Industries Company was established in December 1979 as a joint venture between GCC member states for the manufacture of fertilisers and petrochemicals. The joint venture is equally owned by the Government of the Kingdom of Bahrain, Saudi Basic Industries Corporation, and Petrochemical Industries Company, Kuwait.

GPIC uses natural gas which is readily available in Bahrain as a feedstock for the production of ammonia, urea and methanol totalling 1.4 million tonnes each year. In addition to the production plants the GPIC Complex, which was built in Sitra on a reclaimed area of 60 hectares, comprises utilities plants, maintenance workshops, offices, stores and laboratories. The company employs 474 people of whom 80% are Bahrainis.

The company has a Board of Directors comprising representatives of the three shareholding states. The Board of Directors is chaired by HE Shaikh Isa bin Ali Al Khalifa, Advisor to His Highness the Prime Minister for Industrial and Oil Affairs and GPIC Chairman. The company’s executive management is led by Mr. AbdulRahman Jawahery, General Manager.

The company is a significant contributor to the national economy of Bahrain. Established with a paid up capital of US$ 159 million, GPIC’s cumulative profits have exceeded a billion dollars. The company’s activities, represented by natural gas purchases, employment and training of Bahraini nationals, utilisation of local contractors, power consumption and other financial and commercial operations inject around US$100 million annually into the national economy.

8. Ahmad Al-Ohali – CEO Saudi International Petrochemical Company (Sipchem)

Ahmad Al-Ohali graduated from King Fahad University of Petroleum & Minerals, Dhahran, Saudi Arabia, in June 1981 majoring in Chemical Engineering. Following graduation he joined SABIC, National Methanol Company in September 1981 and progressed within the company into executive positions.

Al-Ohali left SABIC in early 1996 to successfully launch medium size private companies in the film and plastics fields.

Al-Ohali was instrumental in setting up Saudi International Petrochemical Company (Sipchem) as one of its founders. He assumed the position of Executive President of the Company in November 1999 upon incorporation. Al-Ohali is currently the CEO & President of Sipchem and serves on the Boards of Sipchem and several industrial and commercial companies.

Saudi International Petrochemical Company (Sipchem) is a Saudi Company listed on the  Saudi Stock market. The company was established in 1999, with a current paid in capital of US$880 million. Sipchem develops and invests in petrochemical and chemical industries, both basic and intermediate, to produce chemicals used to manufacture a multitude of products that improve the lives of people worldwide.

Through its affiliates, International Methanol Company (IMC) and International Diol Company, Sipchem currently produces over one million mtpa of methanol and 75 thousand mtpa of butanediol.

In the second half of 2006, Sipchem started construction of a major Acetyls Complex which consists of Acetic Acid plant (460 thousand mtpa), Vinyl Acetate Monomer plant (330 thousand mtpa) and Carbon Monoxide plant (345 thousand mtpa). Commercial operation of these plants is scheduled to start in the second quarter of 2009.

As part of Phase-III, Sipchem is also developing an integrated olefins derivatives complex which will consist of nine plants producing value-added, performance chemicals with a production capacity of 800,000 metric tons per year. The project is scheduled to start in 2013.

9. Salah Al Nuzha – president of Tasnee Petrochemical Company

Eng Salah Al Nuzha is the president of the Saudi National Industrialization Company, the largest private petrochemical company in the Kingdom. The company has joint venture projects to produce polyethylene and polypropylene.

Tasnee is constructing a new project in a joint venture with Dow (Rhom and Hass previously) to produce 250,000 tonnes/year of acrylic acid and esters.

Tasnee is the first industrial company wholly owned by private sector in Saudi Arabia, the company is the world’s second largest producer of TiO2 after acquiring the US International Titanium Powder (ITP).

10. Maha Mulla Husain chairperson and managing director, Petrochemical Industries Co. (PIC) and board member of GPCA)

Occupying one of the highest ranking positions held by a woman in the entire petrochemical industry in the Middle East, Maha Mulla Hussain is in charge of the biggest petrochemical company in Kuwait, PIC.

She is also on the board of Kuwait’s Equate and the JV with Dow Chemical of MEGlobal. Since 2001 she has been the deputy managing director for planning and JVs at PIC.

PIC has cancelled a US$15bn joint venture with Dow Chemical to form the K-Dow company following a political dispute in Kuwait over the transaction.