The increase in consumption of several types of agrochemicals that owes to the advancement of practices in agriculture has been expected to fuel the growth of the sector of specialty chemicals in the Middle East and Africa (MEA). Agriculture has a significant role considering the economic output and also an important source of income in African nations. Agrochemicals are basically used for the improvement of the fertility of soil and the prevention of crop damage, primarily from pests and weed growth.
Moreover, major oil-producing countries like Nigeria, Iran, and Saudi Arabia are engaging in the expansion of oilfield for meeting the rising demand for the commodity, hence resulting in significant growth of this sector. The sector of specialty chemicals of MEA is witnessing rapid consolidation because of increasing merger as well as acquisition activities. For example, in the year 2017, Saudi Basic Industries Corporation announced that it was focusing on about 6.0 billion dollars business acquisition opportunities in the domains of specialty chemicals, fertilizers, and petrochemicals.
MEA has some of the biggest oil producing nations in the world, namely, Algeria, Saudi Arabia, and Nigeria. These countries are among the greatest exporters of crude oil and would still be continuing to invest in the development as well as exploration of new oil fields. Because of this, the demand for the specialty chemicals used in fields of oil has been expected to increase in the region. Furthermore, the increase in demand for these specialty chemicals in the automotive lubricants production has also been expected to increase the market share of MEA specialty chemicals in the upcoming years.