Borouge to boost production capacity to 6.6m tonnes
The company has awarded two major contracts aimed at boosting the nameplate capacity of its second ethane cracker (EU2) and the fourth and fifth polyethylene units (PE4 and PE5). Linde Engineering has been awarded a contract for Front-End Engineering Design (FEED) services to upgrade Borouge's second ethane unit (EU2) with an additional capacity of 230,000 tonnes per annum (tpa), a Wam news agency report said.
This strategic project is expected to increase the EU2 cracker's capacity by 15 percent, delivering significant financial gains upon completion in Q4 2028. Linde Engineering was selected for its expertise in design and execution, and its role as the licensor of the existing EU2 cracker. The ethane used as feedstock for the EU2 cracker is supplied by ADNOC Gas and ADNOC Refining, ensuring an integrated and reliable supply chain.
Borouge has also awarded Target Engineering Construction Company an engineering, procurement, and construction (EPC) contract for the expansion and refurbishment of its PE4 and PE5 production units, following a competitive bidding process. This enhancement will increase their nameplate capacity from 540,000 to 700,000 tpa each. Leveraging Borealis Borstar Polyethylene technology, the project is scheduled to be ready for start-up in Q1 2027.
Together with the Borouge 4 mega project, these expansion projects, once fully ramped up, will increase the company's annual total polyolefins production capacity to over 6.6 million tpa by 2028. These projects are driving significant value to the UAE's economy through Adnoc's In-Country Value (ICV) programme, supporting economic and industrial growth.
Hazeem Sultan Al Suwaidi, CEO of Borouge, said: 'By increasing production at our EU2, PE4 and PE5 units, as well as delivering the Borouge 4 mega project, we are strategically positioned for accelerated growth.
"The expansions of our ethylene and polyethylene capabilities will enable Borouge to meet growing market demands, unlock new revenue streams, and further strengthen our global market position. These projects demonstrate our commitment to innovation, operational excellence, and sustainable growth.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Insider
16-07-2025
- Gulf Insider
Why India's Rich Are Heading Abroad
India's remarkable economic ascent, characterised by a burgeoning millionaire population, paradoxically coincides with a significant outflow of its wealthiest citizens. This phenomenon is not merely a statistical anomaly but a complex global shift, reshaping both origin and destination countries. For India, the trend is intricately linked to intensified domestic tax scrutiny, a rapidly formalising economy, and the magnetic pull of attractive, albeit sometimes illusory, overseas residency programmes. On July 7, the Emirates News Agency (WAM) reported that the UAE's Federal Authority for Identity, Citizenship, Customs and Port Security (ICP) categorically denied rumours that the country was offering lifetime Golden Visas for AED 100,000 (around ₹23 lakh) to select nationalities, including India and Bangladesh. This statement followed a widely circulated story, initially reported by PTI and picked up by Indian outlets, claiming a 'nomination-based' pilot programme had been launched for Indian and Bangladeshi nationals, dramatically reducing long-term visa costs. This incident fits into the broader context of a global phenomenon often referred to as the 'great wealth migration'. The Henley Private Wealth Migration Report 2025 reveals that India remains among the top five countries losing the highest number of millionaires annually. An estimated 3,500 Indian millionaires will leave the country in 2025—down from 5,100 in 2023 and 4,300 in 2024, yet still among the world's highest. More strikingly, these individuals are expected to take with them a combined wealth of $26.2 billion. Globally, 142,000 HNWIs are forecast to relocate in 2025, the highest figure on record. On the receiving end, the UAE is set to welcome the largest net inflow (9,800), well ahead of the US (7,500). A combination of zero income tax, investor-friendly regulations, a luxurious lifestyle, and long-term visa options has cemented the UAE's position as a wealth hub. Its appeal spans continents, attracting affluent individuals from India, the UK, Russia, Southeast Asia and Africa. 'Outside of Europe, strong demand from the UK, India, Russia, Southeast Asia and Africa, facilitated by attractive golden visa options, has reinforced the UAE's position as the world's most sought-after wealth haven (+9,800),' the Henley report said. Saudi Arabia, meanwhile, is the biggest gainer year-on-year, with an expected net inflow of 2,400 millionaires in 2025. Despite the outward flow, India's millionaire population is growing. Between 2014 and 2024, the number of Indian HNWIs rose by 72%, fuelled by start-ups, stock market gains and rising family wealth. Yet regulatory hurdles, security concerns, taxation and lifestyle aspirations continue to spur emigration. Several factors are driving the migration of India's wealthiest citizens: 1. Tax pressures at home A key push factor is increased scrutiny by Indian tax authorities. The Central Board of Direct Taxes (CBDT) recovered ₹20,000 crore in outstanding dues in Q1 FY25, nearly double the amount from the same period last year. This includes ₹17,244 crore in corporate tax and ₹2,714 crore in personal income tax (as per ET, 8 July). The CBDT has set a ₹1.96 lakh crore recovery target for the fiscal year. Total outstanding tax demands have ballooned to ₹42 lakh crore (from ₹10 lakh crore in 2019–20), according to a parliamentary report dated 1 October 2024.2. Formalisation of the economy India is in the midst of a profound economic transformation. Historically, a substantial portion of its economy operated informally, characterised by cash transactions and limited oversight. However, a concerted effort by the Indian government is rapidly pushing economic activities into the formal sector, with direct implications for tax compliance and recovery. Central to this is the Unified Payments Interface (UPI), which processed 185.8 billion transactions worth ₹261 lakh crore in FY 2024–25, a 41% increase from the previous year, according to the Reserve Bank of India (RBI). Every UPI transaction is linked to a PAN, creating digital trails for tax authorities. This has made income harder to conceal, leading to greater measures include: Goods and Services Tax (GST): Unified tax structure with digital tracking via e-invoicing and e-way bills. JAM Trinity: Jan Dhan, Aadhaar and Mobile systems that tie identity to financial transactions. Udyam Portal: Simplified registration for MSMEs, broadening the tax base. 3. Cryptocurrency crackdown The Indian government has significantly escalated its formalisation efforts concerning emerging asset classes, particularly cryptocurrencies, which are now legally recognised as 'Virtual Digital Assets' (VDAs). This regulatory shift, implemented through a series of measures, aims to integrate the crypto ecosystem into the nation's broader financial and tax framework. Key to this strategy are strict taxation policies and enhanced regulatory oversight under the Prevention of Money Laundering Act (PMLA). Specifically, a flat 30% capital gains tax is levied on profits from VDA transfers, irrespective of the holding period, with no provisions for offsetting losses against gains or other income. Furthermore, a 1% Tax Deducted at Source (TDS) is applied to VDA transactions exceeding ₹50,000 (or ₹10,000 for specific entities) on the total sale consideration, rather than just the profit. These tax mandates have severely impacted the profitability of crypto investments and trading domestically. The inability to adjust for losses combined with the TDS on gross transaction value has rendered the Indian crypto market economically challenging for many large-scale investors and high-frequency traders. The cumulative effect of these stringent tax and regulatory policies has been a discernible shift in crypto trading volume and capital away from Indian platforms towards offshore exchanges. Wealthy individuals, seeking environments with lower tax burdens and less restrictive regulations on their digital assets, are increasingly exploring international avenues. 4. Global mobility and lifestyle aspirationsAccording to a survey by Kotak Private in partnership with EY, 22% of ultra-rich Indians expressed a desire to leave the country for better living standards, healthcare, education, and ease of doing business. Many also seek visa-free travel, which Indian passports currently do not offer at the same level as European or Caribbean counterparts. While domestic pressures contribute to the outflow, powerful 'pull factors' from abroad, particularly attractive residency and citizenship-by-investment (CBI) programs, play a significant role. Countries offering zero or low personal income tax, capital gains tax, and inheritance tax are highly desirable. The UAE stands out as a prime example, with its zero personal income tax, no capital gains tax, and no inheritance tax, making it a leading choice for wealth preservation. Additionally, jurisdictions such as Portugal, Singapore and the UAE offer attractive regimes for estate planning, making them prime options for intergenerational wealth transfer. UAEWith its zero-tax regime, quality of life and efficient Golden Visa programme, the UAE remains the top destination for Indian HNWIs. USAThe US remains popular, especially through the EB-5 visa route. A new entrant, the Trump 'Gold Card', has also generated buzz. Click here to read more Also read: India Launches E-Visa For Kuwait From July 14: 5-Year Tourist Visas Available Source The Economic Times
Gulf Insider
12-07-2025
- Gulf Insider
More Than Just A Train: Etihad Rail Will Spark Next Surge For UAE Economy, Jobs
Imagine stepping onto a sleek high-speed train in Abu Dhabi and arriving in Dubai in under an hour—no traffic, no stress, just a smooth, quiet ride across the desert. That futuristic vision is set to become reality as Etihad Rail, the UAE's ambitious national railway project, is on track for launch in 2026—and it promises more than just faster travel. It's poised to drive an economic shift that touches nearly every corner of the country. The numbers tell a compelling story. The Abu Dhabi–Dubai passenger line alone is expected to contribute up to Dh145 billion to the UAE's GDP over the coming decades, according to estimates from Emirates News Agency (WAM). And by 2030, the wider national rail network is projected to add Dh3.5 billion annually to the economy—with an impressive economic return rate of 15.5%. But that's just one track of a much larger transformation. Etihad Rail is not just laying tracks—it's laying the groundwork for the creation of more than 9,000 new jobs by 2030 across the UAE as part of a larger project. That includes opportunities in engineering, construction, train operations, logistics, and maintenance. Launched as part of the UAE's 'Projects of the 50' initiative with an investment of Dh50 billion, the UAE Railway Programme serves as a long-term strategy to connect all seven emirates and key urban and industrial hubs through a national rail network. The programme is expected to generate Dh200 billion in economic opportunities, according to official government data. It aims not only to develop a sustainable transport system but also to drive growth in sectors like environment, industry, and tourism. As stations, depots, and supporting infrastructure take shape across the Emirates, the project has already employed tens of thousands during its construction phase, with ripple effects across supply chains, factories, and service sectors. In fact, the development of local industries—like factories manufacturing railway sleepers and other materials—has already generated hundreds of additional roles. Meanwhile, partnerships with institutions like ADVETI (Abu Dhabi Vocational Education and Training Institute) are preparing the next generation of Emiratis for lifelong careers in the transport and engineering sectors. 'It's not just a railway—it's a legacy project that's building a completely new labour base for the nation,' one Etihad Rail spokesperson said. This isn't only about jobs. With faster, greener travel linking major cities, the railway is expected to boost tourism, reduce road congestion, and support property value growth in areas surrounding future stations. Business travel will become more efficient, while transportation costs for goods and people are set to fall, benefiting both everyday residents and industries. It's also a powerful lever for economic diversification—reducing the country's dependence on oil by creating new pathways for commerce, logistics, and sustainable infrastructure. That includes a significant environmental gain, as electric-powered trains are expected to remove thousands of trucks and cars from UAE highways, reducing carbon emissions and aligning with the country's climate goals. According to the official UAE Government portal, the UAE Railway Programme aims to reduce 70% to 80% of carbon emissions over the next 50 years, aligning directly with the country's long-term sustainability goals. The economic momentum around Etihad Rail is only gaining speed—with job creation and broader financial benefits set to accelerate as the network expands and operations gear up. So whether you're a fresh graduate eyeing a future in transport, an entrepreneur watching shipping costs, or a resident dreaming of stress-free intercity travel, Etihad Rail isn't just a train project—it's a nation-building engine. The trains may start rolling in 2026, but for the UAE's economy and its workforce, the journey has already left the station.
Gulf Insider
07-07-2025
- Gulf Insider
Oman GDP Grows 2.5% in Q1 2025 to $24.5 Billion
Oman's economy expanded by 2.5 per cent in the first quarter of 2025, with real GDP reaching RO 9.43 billion at market prices, according to data from the National Centre for Statistics and Information. The figure represents an increase from RO 9.2 billion recorded during the same period in 2024, marking growth across multiple sectors of the sultanate's economy, WAM reported. Non-oil sectors led the expansion, posting a 4.4 per cent increase in added value to reach RO 6.92 billion in Q1 2025, compared to RO 6.63 billion in the corresponding quarter of 2024. Oil activities experienced a decline of 0.4 per cent, contributing RO 2.92 billion to the economy in Q1 2025, down from RO 2.94 billion in the previous year's first quarter. Crude oil production fell by 2.2% to RO 2.45 billion during the period under review. However, natural gas production provided a counterbalance, increasing by 9.5 per cent to RO 475.3 million. The National Centre for Statistics and Information released the data as part of its quarterly economic assessment, highlighting the diversification efforts within Oman's economy. The growth figures demonstrate the increasing contribution of non-oil sectors to the country's economic output, whilst traditional energy sectors showed mixed performance. Natural gas production emerged as a growth driver within the energy sector, offsetting some of the decline seen in crude oil output during the three-month period. Also Read: Indian Traveller Caught Smuggling 5.3Kg Of Marijuana At Muscat International Airport
