Chemical Logistics Market Analysis

The Middle East and Africa’s chemical logistics sector is anchored by the Gulf states, which dominate global petrochemical exports, and by Africa’s growing demand for fertilizers and agrochemicals. Saudi Arabia’s Jubail Industrial City and Yanbu house some of the largest integrated chemical complexes in the world, operated by Saudi Aramco and SABIC, supported by dedicated pipeline networks, bulk liquid terminals, and port facilities at King Fahd Industrial Port and Yanbu Commercial Port. The UAE’s Ruwais complex, run by ADNOC, integrates refining, petrochemicals, and logistics, while Oman’s Sohar port provides a key gateway for chemical flows into South Asia and East Africa. Maritime shipping is the backbone of exports, with Jebel Ali Port in Dubai acting as a major hub for chemical tankers and containerized cargo. Africa, in contrast, is more dependent on imports, with Morocco’s OCP Group supplying phosphate-based fertilizers worldwide, while Egypt’s Misr Fertilizers Production Company (MOPCO) distributes nitrogen products across Africa and the Middle East. Road transport dominates inland chemical distribution, though railways are expanding in Gulf states and in countries like South Africa, where Transnet Freight Rail operates specialized wagons for bulk chemicals. Warehousing infrastructure includes tank farms in Jubail and bonded chemical storage facilities in Durban, South Africa, while temperature-controlled units are emerging in hubs like Dubai South and Johannesburg to support pharmaceuticals. Regulatory oversight varies widely, from the Gulf’s alignment with international standards such as IMDG for shipping hazardous goods to Africa’s more fragmented compliance regimes. However, safety incidents, including the Beirut port explosion in 2020, have highlighted the urgent need for stricter handling and storage rules. According to the research report "Middle East and Africa Chemical Logistics Market Reserach Report, 2030," published by Actual Market Reserach, the Middle East and Africa Chemical Logistics market is anticipated to grow at more than 5.20% CAGR from 2025 to 2030.

Maersk, Hapag-Lloyd, and MSC handle large chemical cargoes through ports like Jebel Ali, while Gulftainer and Bahri Chemicals, based in Saudi Arabia, specialize in tanker operations. In Africa, Imperial Logistics plays a leading role in inland chemical distribution, particularly in South Africa, while Grindrod Logistics connects ports like Durban and Maputo to industrial zones. The oil and gas industry remains the largest driver, with companies such as SABIC, QatarEnergy, and ADNOC requiring multimodal logistics for petrochemical exports, while agriculture pushes demand for fertilizer distribution into sub-Saharan markets. Pharmaceuticals are growing in importance, with Pfizer and Novartis relying on cold chain networks to distribute medicines across Gulf Cooperation Council states and into African healthcare systems. Pricing pressures in the region are shaped by volatile bunker fuel costs, high insurance premiums on shipping routes near the Red Sea and Strait of Hormuz, and compliance expenses tied to hazardous material regulations. Technology adoption is gaining pace, with Dubai Customs experimenting with blockchain for cargo clearance and Gulf logistics firms deploying IoT-enabled tracking for tanker fleets. Sustainability initiatives are emerging, with DP World launching green logistics projects in Jebel Ali and South African operators testing electric trucks for local distribution. Risks remain high, from geopolitical tensions in the Middle East to infrastructure bottlenecks in Africa, where limited rail and road capacity increases reliance on expensive trucking. Yet opportunities are significant, with ongoing investments in industrial hubs like King Salman Energy Park (SPARK) in Saudi Arabia and Nacala Logistics Corridor in Mozambique promising to reshape chemical supply chains..

Market Dynamic

Chemical LogisticsSegmentation

Transportation is the largest element of chemical logistics in MEA because chemicals are produced in concentrated hubs and must move across long distances to reach export terminals, industrial zones, and consumer markets.

The Middle East and Africa region relies heavily on transportation within its chemical logistics landscape because of the unique geography and industrial layout, where chemical production is concentrated in specific hubs such as Jubail and Yanbu in Saudi Arabia, Ruwais in the UAE, and Sohar in Oman, while consumption and exports extend across vast distances. Bulk petrochemicals, fertilizers, and industrial gases produced in these complexes are shipped by pipelines to nearby ports but also require extensive road and rail movement to reach inland factories, agriculture zones, and neighboring countries. For instance, fertilizers produced in Saudi Arabia and Morocco travel long distances by road to farming regions in Africa, while plastics and polymers made in the Gulf are trucked to manufacturing bases in the Middle East before being exported further. Road transport dominates most of Africa due to underdeveloped rail networks, with fleets of tanker trucks and ISO container carriers playing a critical role in connecting producers with distributors. Rail infrastructure, however, is expanding in places like Saudi Arabia with projects such as the Saudi Railway Company’s network, which is increasingly used for bulk chemical transport. Maritime transport also has a central role since MEA exports a large share of its chemical output, and ports like Jebel Ali, Dammam, and Durban act as gateways for chemical tankers and containerized shipments. The scattered nature of chemical consumption, combined with the importance of exports, ensures that transportation is the largest and most indispensable component of chemical logistics in MEA, as every chemical must be moved from production centers to diverse destinations across harsh deserts, wide agricultural lands, and global markets.

Hazardous chemicals are the fastest growing segment in MEA chemical logistics because the region’s petrochemical, fertilizer, and industrial gas industries produce large volumes of materials that require specialized handling and strict compliance.

Hazardous chemicals are becoming increasingly significant in MEA logistics because the region produces and exports vast amounts of substances that are flammable, corrosive, or toxic, demanding specialized infrastructure and expertise. Fertilizers based on ammonia and urea, for example, are a cornerstone of economies in countries such as Saudi Arabia, Qatar, and Morocco, and their movement across borders to serve African agriculture requires robust safety practices. Industrial gases such as chlorine, hydrogen, and oxygen, used in water treatment, energy, and manufacturing, add another layer of complexity because of their high hazard profiles. Petrochemicals like benzene, methanol, and toluene, produced at mega-complexes in the Gulf, are exported worldwide on chemical tankers and transported domestically using ISO tanks, pipelines, and road tankers designed to prevent leaks or accidents. The regulatory environment in the region has tightened significantly in recent years, with governments implementing stricter standards for hazardous cargo, pushing logistics providers to upgrade equipment and train staff in emergency response. Africa also faces growing demand for hazardous agrochemicals like pesticides and herbicides, which must be safely distributed from ports to remote rural areas, often under challenging infrastructure conditions. High-profile incidents such as port fires and industrial accidents have increased awareness and investment in safer logistics systems, leading to growth in hazardous chemical logistics. As the petrochemical and fertilizer industries continue to expand production capacity and as African agriculture scales its reliance on inputs, the share of hazardous materials moving through logistics channels grows larger, making this the fastest expanding segment in the MEA chemical logistics market.

Oil and gas is the largest end-use sector in MEA chemical logistics because the region is the world’s primary exporter of hydrocarbons and petrochemicals, creating enormous movement of feedstocks and derivatives.

The oil and gas sector dominates MEA chemical logistics because nearly every major industrial activity in the region is tied to hydrocarbon resources, from production to export. Countries like Saudi Arabia, Qatar, the UAE, and Kuwait have developed world-scale petrochemical complexes integrated with refineries, producing ethylene, propylene, methanol, and other derivatives that require large-scale logistics systems. These products move through pipelines directly to industrial cities and ports, but the broader distribution involves tanker trucks, railcars, and international chemical tankers that export to Asia, Europe, and Africa. Oil and gas also drive logistics demand in Africa, with Nigeria and Angola supplying crude oil and associated petrochemical feedstocks, which are exported through ports like Lagos and Luanda, often requiring specialized facilities for hazardous cargo. Logistics demand extends beyond primary feedstocks into downstream chemicals used in refining and exploration, such as drilling fluids, lubricants, and solvents, which must be transported to oil fields in remote desert or offshore locations. Ports such as Jubail and Jebel Ali are designed as global export hubs, with dedicated terminals handling bulk petrochemicals destined for markets as far as China and India. Pipelines remain a cornerstone of logistics in the Gulf, reducing trucking requirements for high-volume petrochemicals, while maritime routes like the Suez Canal are vital for moving products to Europe. The sheer scale of oil and gas activity, combined with the central role hydrocarbons play in regional economies, makes this sector the largest driver of chemical logistics demand in MEA, far outpacing other industries.

Temperature-controlled logistics is the fastest growing service in MEA because pharmaceuticals, specialty chemicals, and climate-sensitive materials must be protected from extreme regional temperatures to remain effective.

The importance of temperature-controlled logistics in MEA is rising quickly due to the dual pressures of extreme climate conditions and the growing demand for pharmaceuticals and specialty chemicals that cannot withstand temperature fluctuations. The Middle East regularly experiences summer temperatures exceeding 45°C, while some parts of Africa face equally harsh conditions, making it essential to use refrigerated trucks, insulated containers, and heated tankers to prevent spoilage or degradation of sensitive cargo. The pharmaceutical industry is a major driver, with vaccines, biologics, and insulin requiring strict cold chain infrastructure for distribution across Gulf states and into African markets where healthcare systems are expanding. The COVID-19 vaccine rollout provided a stark example of the need for reliable cold chain logistics, as doses had to be transported across deserts and into rural African regions while maintaining specific temperature ranges. Specialty chemicals such as adhesives, resins, and coatings also require controlled environments, as overheating or exposure to cold can alter their chemical properties. Agrochemicals like pesticides and herbicides similarly need stable conditions to retain effectiveness during distribution to Africa’s farming communities. Investments in refrigerated and heated logistics infrastructure have accelerated in ports, airports, and trucking fleets, with real-time monitoring systems increasingly being adopted to ensure compliance and prevent losses. International logistics providers have partnered with regional players to expand cold chain capabilities in hubs like Dubai, Riyadh, and Johannesburg. With demand rising for both life-critical pharmaceuticals and high-value specialty chemicals, coupled with the challenges posed by MEA’s extreme climate, temperature-controlled logistics has become the fastest growing service segment in the region.

Chemical Logistics Market Regional Insights

Saudi Arabia leads the Middle East and Africa chemical logistics market because it is the largest petrochemical producer and exporter, with world-class industrial and port infrastructure.

Saudi Arabia’s leadership in the Middle East and Africa chemical logistics market is a direct result of its massive petrochemical industry, which is among the largest globally, and its strategic investments in infrastructure. The kingdom is home to Saudi Aramco and SABIC, two global giants producing vast quantities of ethylene, methanol, polyethylene, and fertilizers that are exported worldwide. Industrial hubs like Jubail and Yanbu are designed as integrated complexes where refineries, chemical plants, and logistics facilities coexist, supported by pipelines, tank farms, and dedicated shipping terminals. The King Fahd Industrial Port at Jubail is one of the largest industrial ports globally, handling extensive volumes of chemical cargo bound for Asia, Europe, and Africa. Saudi Arabia’s location at the crossroads of major maritime trade routes through the Red Sea and Arabian Gulf further enhances its role as a chemical export powerhouse. Domestically, logistics supports downstream industries in plastics, fertilizers, and construction materials that drive diversification efforts under the Vision 2030 program. The government has invested heavily in transport infrastructure, expanding railways, highways, and logistics hubs to strengthen connectivity. Strict adherence to international safety and handling standards ensures that hazardous chemical transport remains efficient and secure, while sustainability initiatives are increasingly being integrated into logistics practices. Neighboring Gulf countries contribute to regional chemical trade, but none match Saudi Arabia’s scale of production, export volumes, or infrastructure quality.