Middle East and Africa Methanol Market

The Middle East and Africa Market Size (2023-2028)

The Middle East and Africa Market are anticipated to garner a considerable CAGR in the global methanol market. The Middle East contributes to more than 30% of the global liquids production, which is likely to promote demand in the regional methanol market.

Drivers and Restraints of the Middle East and Africa Methanol Market

Methanol acts as an alternative and provides a solution to reduce the emission of greenhouse gases. This is one of the features which contributed to the growing demand for methanol in the Middle East and Africa in the past few years. One of the fastest-growing sectors in the Middle East region is the power sector which grew at a rate of 2.3% CAGR, this growth has accompanied a rise in demand for methanol as a fuel. This is one of the major contributing factors to the methanol market. The total demand is expected to be around 3% of the total GDP of the GCC countries.
Urbanization leading to an increase in construction work is also another factor leading to the growth of the industry.

The Middle East and African region are the major sources of methanol; however, the demand for the same is relatively low in the country and most of it is exported to other nations. The region is also lagging behind in terms of policies toward eco-friendly fuel consumption and thus hindering the growth of the alternate fuel market.

The MEA Methanol market has been segmented into the following categories:

By Feedstock

• Natural Gas

• Coal

By Derivative

• Formaldehyde

• MTO/MTP

• Gasoline

• MTBE

• MMA

By Sub-derivative

• UF/PF Resins

• Olefins

By End-Use Industry

• Construction

• Automotive

• Electronics

• Healthcare

The power sector is one of the fastest-growing sectors in the Middle East and African region in terms of consumption of Methanol. The growth rate has been recorded at 3% annually and shows promising signs to improve the growth post the covid-19 pandemic in turn improving the methanol market.

The automotive and construction sector is also growing in the MEA region and it is expected to boost the methanol market in the aforementioned region. Countries such as Turkey and South Africa have made significant contributions to the global methanol market and this feat can be accredited to the sustainable development goals taken by the local governments by incorporating clean technology.

There are several players that are asserting their dominance in the Methanol Market in the Middle East and Africa market are:

1. Qatar fuels and additives Co.

2. Petroleum Nasional Berhad (PETRONAS)

3. Solventis

4. Zagros Petrochemical Company

5. Croda International

6. Methanex Corporations

Impact of COVID-19 on the Middle East and African Methanol Market:

COVID-19 has exposed severe challenges for the methanol market by impacting end-user sectors. Major economies of the Middle East and Africa have witnessed the effect of this pandemic combined with the existing hostile socio-economic conditions plagued with civil wars and terrorism. The Methanol market saw subdued growth in this period owing to the increase in sanitation activities which became mandatory in almost all working places but with absolutely no demand from the natural gas and oil industry, the methanol market suffered from it. The construction works were halted and the demand for methanol dropped. One can expect the normal growth to resume post the pandemic but during that time, various companies will need to prove strong liquidity to avoid solvency.