The Saudi Arabia Chemical Licensing Market Size:
The Saudi Arabian Chemical Licensing Market is anticipated to expand at a high CAGR over the forecast period.
Market Key Highlights:
- The Saudi Arabian chemical licensing market is growing at a moderate rate, driven by localization of industries for the production of many important resources like pharmaceuticals, food and beverages, petrochemicals production, and agriculture, and the need for efficient and safe production processes.
- Favourable government policies will be driving the market.
The Kingdom of Saudi Arabia is making significant strides toward the country's modernization by 2030 by localizing many core sectors and providing appropriate funds for investments. The localization of the industries for the production of many important resources like pharmaceuticals, food and beverages, petrochemicals production, and agriculture, and the need for efficient and safe production processes, will lead to the development of the chemical licensing market in the country. The government provides appropriate funds for developing the sectors through public investment funds.
Additionally, the need for oil and gas is significant worldwide. According to OPEC data, world imports of petroleum products by country (1,000 b/d) were 26,061.6 (1,000 b/d) in 2020 to 27,548.7 in 2021 and increased to 27,716.9 in 2022. Saudi Arabia is a major player in crude oil exports of 7,364 (1,000 b/d) in 2022, and with a refinery throughput of 2,702 (1,000 b/d) in 2022, the demand from this segment in the Kingdom of Saudi Arabia would be prominent.
Further, favorable government policies are also anticipated to encourage factories to be set up in the country for job creation and a positive environment for growth. Along with this, the expanding manufacturing sector in the country has further created the demand for new chemical production facilities.
Saudi Arabia Chemical Licensing Market Overview
| Report Metric |
Details |
| Study Period |
2021 to 2031 |
| Historical Data |
2021 to 2024 |
| Base Year |
2025 |
| Forecast Period |
2026 – 2031 |
& Scope
The Saudi Arabia Chemical Licensing Market is segmented by:
- Chemical Type: The Saudi Arabia Chemical Licensing Market by Chemical Type is segmented into Basic Chemicals, Specialty Chemicals, Agrochemicals, Pharmaceutical Chemicals, and Industrial Gases.
- Licensing Type: The Saudi Arabia Chemical Licensing Market by Licensing Type is segmented into Production License, Import/Export License, Distribution License, and Special Permits.
- End User: The Saudi Arabia Chemical Licensing Market by End-Use Industry is segmented into Oil & Gas, Construction & Infrastructure, Healthcare & Pharmaceuticals, Agriculture, and Consumer Goods.
Top Trends Shaping the Saudi Arabia Chemical Licensing Market
- High Growth in Oil and Gas
The oil and gas segment is expected to hold a significant portion of the chemical licensing market, as the cumulative crude oil production (in 1,000 b) has expanded from 161,654,358 in 2021 to 165,520,041 in 2022, giving an upsurge in production in the country.
Saudi Arabia Chemical Licensing Market Growth Drivers vs. Challenges
Drivers:
- Favorable government policies are anticipated to fuel the chemical licensing market in Saudi Arabia: The visionary leadership of Saudi Arabia wants to take their country to new heights in the fields of culture, education, and manufacturing. For this, they set up the "Vision 2030" initiative for the overall social, economic, and environmental goals. The chemical industry has been at the forefront in developing for adoption of new technologies and creating a positive environment for the chemical licensing market. In February 2024, the Ministry of Saudi Arabia announced the creation of 150k jobs in chemical plants and renewable energy facilities in the nation. They are committed to the localization of 75 per cent. Following sustainable practices, they are committed to 39-49 per cent female participation in the sector. Along with this, a new institute named "Energy Tech Institute" was announced, known as "Saudi Technical Institute for Petroleum Services". Expanding opportunities for renewable energy and innovation will open new avenues for the chemical licensing market in Saudi Arabia.
- The growing demand for petroleum products is predicted to fuel the market: The petrochemicals segment in the Saudi Arabian chemical licensing market is prominent in terms of the volume of demand and supply of petroleum products. The export of petroleum products experienced an upsurge from 1,343.7 (1,000 b/d) in 2021 to 1,468.4 (1,000 b/d) in 2022. Similarly, imports were 360.1 (1,000 b/d) in 2022. The active rigs in the country were 59 in 2020, 65 in 2021, and 80 in 2022. Saudi Arabia’s daily crude oil production increased from 9,125 ('000) in 2021 to 10,591 ('000) in 2022. Further, the demand for localization is creating specific opportunities such as In-Kingdom Total Value Add (IKTVA). Under this, Saudi Aramco has designed to create and maximize long-term economic growth and diversification to support the country's vision, focusing on investment, economic diversification, job creation, and workforce development
Challenges:
- Complex regulatory compliance: The complexity in regulations is one of the major challenges for the market as it raises cost. Companies may face delays or additional costs in obtaining licenses due to multiple regulatory requirements across different authorities, such as the Ministry of Industry & Mineral Resources, Saudi Customs, and environmental regulations.
Saudi Arabia Chemical Licensing Market Competitive Landscape
The key players in the Saudi Arabia Chemical Licensing Market include Chevron Philips Chemical Company Inc., Mitsubishi Gas Chemical Company Inc., Dow, ExxonMobil Chemical, Methanol Chemicals Company (Chemanol), Shell, Huntsman Corporation, Eastman Chemical Company, and Sumitomo Chemical.
- Regulatory & Industrial Developments: In 2024, Saudi Arabia issued 1,346 new industrial licenses, attracting over SR50 billion in investments. The government also launched the second phase of its standardized industrial incentives program to boost competitiveness and high-value investments.
Saudi Arabia Chemical Licensing Market Segmentation:
- By Chemical Type
- Basic Chemicals
- Specialty Chemicals
- Agrochemicals
- Pharmaceutical Chemicals
- Industrial Gases
- By Licensing Type
- By End-User Industry
- Oil & Gas
- Construction & Infrastructure
- Healthcare & Pharmaceuticals
- Agriculture
- Consumer Goods