Petrochem Middle East, one of the largest chemical distributors globally, will invest between $80-$90 million to develop a chemical terminal within Jebel Ali Port in Dubai.
The company has signed a 30-year lease agreement with DP World, UAE Region, which owns Jebel Ali port and Jebel Ali Free Zone (JAFZA), to build the facility on Quay 7, adjacent to the dedicated chemical handling berth at Jebel Ali Port.
The facility is expected to be completed by the third quarter of 2023 and will provide chemical raw materials in large volumes to industries in the UAE, DP World said in a statement Wednesday.
At its peak the terminal will have a capacity of approximately 40,000 cubic meters for storage of various products and will also be fitted with distillation and processing units.
The facility is expected to contribute annually to upwards of $200 million of new trade to and from Dubai.
Abdulla Bin Damithan, CEO & Managing Director, DP World-UAE Region and Jafza, said that despite the highly unstable market due to the pandemic, over the course of 2020, the GCC’s chemical output expanded by 1.5 per cent compared to a global decline of 2.6 per cent.
“These figures showcase the resilience of the sector and the potential it has. Our partnership with Petrochem Middle East and our long-standing relationship with the company is further proof of the burgeoning sector.”
Yogesh Mehta, CEO, Petrochem Middle East, said his company, which has an annual turnover is over 2.5 billion dirhams ($681 million), is expecting short term and long-term gains of about 10-15 percent on the investment.
(Writing by Brinda Darasha; editing by Seban Scaria)
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