United Arab Emirates (UAE) Green Chemicals Market Research Report, 2029

In the face of climate change, the UAE's green chemicals market stands at the forefront of the transition to a circular economy, offering eco-friendly alternatives that benefit both industry and environment. The pandemic led to the shutdown of manufacturing facilities due to government regulations aimed at controlling the virus spread. This resulted in production limitations and a temporary halt in operations for many chemical manufacturers, affecting their ability to meet market demands. The UAE offers a business-friendly climate with minimal bureaucracy, encouraging foreign investment and entrepreneurship. This supportive regulatory framework is conducive to establishing a chemical trading business. ADNOC is a leading diversified energy and petrochemicals group wholly owned by the Emirate of Abu Dhabi. ADNOC’s objective is to maximize the value of the Emirate’s vast hydrocarbon reserves through responsible and sustainable exploration and production to support the United Arab Emirates’ economic growth and diversification. The UAE government is taking various actions to support the construction activities of residential, commercial, industrial, and public spaces. The construction industry in the UAE is expected to grow astronomically, which, in turn, would fuel the demand for green chemicals in the coming years. The increasing inflow of Foreign Direct Investment (FDI) in the construction sector, rising government funding on construction projects, and immense participation of private companies in the development of the real-estate sector are a few major factors driving the green chemical Market growth in the UAE. In 2023, the government of UAE planned to restart its largest construction project, "Al Maktoum International Airport'. Increasing consumer awareness regarding environmental impacts is driving demand for bio-based and sustainable products, including those used in packaging and construction. According to the research report "UAE Green Chemical Market Research Report, 2029," published by Actual Market Research, the UAE green chemical market is anticipated to grow at more than 10% CAGR from 2024 to 2029. The UAE government is trying to promote the development of the private sector that could complement the historical dominance of the country, which, in turn, is boosting the demand for construction chemicals in the country. In addition, ambitious projects of the government, such as the Etihad rail project, Al Maktoum International Airport, and others, are expected to elevate the growth of the green Chemical Market in the forecast year as well. These developments are an efficient alternative for passenger & freight transportation, which impacts the construction activities in the country and consequently the demand for construction chemicals across the market. Moreover, hosting the World Expo and initiatives like the UAE Vision 2030 & Abu Dhabi Vision 2050 are other crucial aspects expected to infuse substantial investments in various construction projects and enhance the UAE green chemical Market size. With growing concerns regarding rapid climate change, depleting fossil fuel reserves, and high chemical pollution, the demand for green chemicals that are eco-friendly and do not originate from petrochemical resources is surging. The increasing focus on sustainability in various end-use sectors, including food and beverage and packaging among others is also propelling the green chemicals market demand. The presence of advanced logistics facilities, such as the Jebel Ali Port and Dubai International Airport, ensures efficient transportation of goods. This infrastructure is vital for maintaining supply chain efficiency in the chemical sector, particularly for green chemicals that require timely delivery to meet market demands.

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Bio alcohols have a major share in the green chemicals market of the UAE. These chemicals have vast applications in the different industries, mainly in biofuels, pharmaceuticals, and food processing, hence their popularity in the green chemicals markets of the UAE. The need to decrease carbon emission in the country and increase reliance on renewable sources of energy has put bio alcohols in a strategic position. Bioethanol is one of the most vital bio alcohols. Such a bio alcohol has had strong market demand and is the backbone of sustainable fuel production, not only fulfilling the country's green energy missions but also making the fuel sustainable. Additionally, based on versatility in chemical manufacturing and usage as a solvent and an intermediate, it has added several bright stars to the dominance of the products in the market. Bio Polymers: This segment in the UAE is fast picking momentum. Bio polymers are likely to grow in response to increasing demand for biodegradable, environment-friendly packaging materials triggered by stronger environmental regulation and consumer awareness. Being considered as an alternative to conventional plastics, bio polymers are witnessing a rising demand among industries such as UAE's packaging, automotive, and construction sectors that are reverberating for a more sustainable future. Initiatives taken by the government of the UAE towards plastic-free waste and sustainable life enhance the growth of this segment as the manufacturers will tend to prefer more bio-polymers. Bio Organic Acids and Bio Ketones are two core niche products in the green chemicals market. Bio organic acids are the key ingredient in food and beverage, pharmaceutical, and cosmetic industries either used as preservatives or flavouring agents and even as building blocks for biodegradable polymers. Bio ketones are also gaining importance because they have the prospect of replacing petrochemical-derived ketones. Biochemical solvents, renewable resource-based solvents, and bio-solvents for paints, coatings, and cleaning products are increasingly finding applications where conventional solvents are being replaced by safer and more environment-friendly ones. The Packaging segment has dominated the green chemical market in UAE due to the increase in demand from consumers for sustainable and eco-friendly packaging solutions. This growth also is due to increased awareness about environmental issues and the imposition of strict government regulations to eliminate plastic waste. Most bio-based polymers used in packaging, such as PLA and PHA, are applied in films, bags, bottles, and trays. These materials are selected for their biodegradation and compostability, thus helping to minimize issues associated with waste management and supporting a circular economy. The Healthcare segment is growing quite rapidly in the green chemical market of UAE. Various applications in the healthcare segment of green chemicals are found; examples include biocompatible materials for medical devices, tissue engineering scaffolds, and drug delivery systems. Bio-based polymers like PLA and PCL are used in the creation of bioresorbable implants and sutures besides controlled-release drug formulations. Demand for novel and eco-friendly healthcare applications and progress in biomedical research and material science remains the growth drivers of this segment. Pharmaceuticals & Personal Care Products are one among the more important application segments in the green chemical market. Green chemicals are used as active ingredients, preservatives, emulsifiers, and surfactants in formulating cosmetics, skincare products, and pharmaceuticals. For example, bio-based glycerin and organic acids are commonly used in personal care products for aspects like moisture retention as well as antimicrobial activity. The Construction sector uses green chemicals in developing bio-based insulation foams, adhesives, and coatings. These materials reduce the environmental footprint brought about by construction work and increase energy efficiency. In the Food & Beverage sector, green chemicals are also used as preservatives, flavoring agents, and processing aids. Thus, for instance, biobased organic acids help ensure better food safety and improved shelf life. In the Paints & Coatings segment, green chemicals act as solvents, binders, and additives for the development of green low-VOC coatings. The Automotive industry applies green chemicals in bio-based lubricants, fuels, and interior materials to minimize the environmental footprint of vehicles. Other applications falls under catch-all categories that include areas such as agricultural, textiles, and cleaning products where green chemicals are applied in order to increase sustainability, thus minimizing its ecological footprint. Increasing awareness regarding eco-friendly products and demand for sustainable goods in all sectors is the primary reason for this increased demand for these applications.

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Kripa Shah

Senior Analyst

Considered in this report • Historic year: 2018 • Base year: 2023 • Estimated year: 2024 • Forecast year: 2029 Aspects covered in this report • Green Chemicals market Outlook with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Product Type • Bio Alcohols • Bio Organic Acids • Bio Ketones • Bio Polymers • Bio Solvents • Others Product Types

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By Applications • Packaging • Healthcare • Pharmaceuticals & Personal Care Products • Construction • Food & Beverages • Paints & Coatings • Automotive • Other Applications The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Green Chemicals industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.