Middle East's Potential in Chemicals

The purpose of this study is to review the status, in 1976, of the petrochemical industry and that of pertinent projects in the Middle East and to present some analysis of the impact of these projects on the world supply/demand situation for chemicals. The Middle East as defined in this report includes the Arabian peninsula, Egypt, Iran, Iraq, Jordan, Lebanon, and Syria as shown in Figure 1.1.

The most likely candidates for large scale production in the Middle East are: (1) ammonia and urea, (2) methanol, (3) ethylene and polyethylene.* The possible economics of foreign investments in each of the above three projects is estimated for a coastal site in Saudi Arabia. Allowances are included for the effect of construction costs, labor availability and productivity, government loans, and tax incentivies, on the economic viability of these projects.