In the GCC, the chemicals industry is a vital supplier to many manufacturing industries, producing close to 100 chemical products locally and accounting for around 3 percent of the region’s GDP. With GCC nationals comprising more than 60 percent of the workforce, it also plays a central role in meeting government nationalization targets.

Tasked with helping to diversify the national economy by supporting industrial localization, a leading petrochemicals company examined its consumption patterns and found that a significant volume of materials, goods, and services was not being produced locally. Kearney was asked to help the firm set up, manage, and run a program to increase local content. The ultimate goal was enabling more local manufacturing by helping large investors, small and medium-size enterprises, and entrepreneurs assess the business cases, identify sources of financing and raw materials, and negotiate offtake agreements to purchase or sell a proportion of the goods produced.

We worked with investors to develop their ideas from pre-feasibility to a full business case by carrying out an in-depth commercial and financial analysis of the opportunities, the capabilities of each investor and technology partner, the market competitiveness of target products, and the proposed capital structure. We also helped identify and develop new opportunities to localize white spaces in the market and attract local and foreign investments. Each analysis examined the competitive landscape and potential models of value chain participation.

The result? We prioritized hundreds of industrial investment opportunities, including basic, intermediate, and specialty chemicals as well as plastics, metals, machines, renewables, building materials, and medical supplies. Many business cases have kickstarted local production efforts and are now adding direct value to the local economies by promoting foreign direct investments, enhancing GDP, and creating jobs.