Abu Dhabi chemicals maker Borouge's $6.2 billion Borouge 4 project in Ruwais remains “on track” to be completed by the end of 2025, its chief executive said.
The plant will increase Borouge’s polyolefin production by about 30 per cent to 6.4 million tonnes. It will also make the company's production operation at Al Ruwais Industrial City the world's largest single-site polyolefin complex.
“We're looking forward to complete this project by the end of 2025. The current progress of completion of the project is more than 50 per cent,” Hazeem Al Suwaidi told The National.
“[It] will have a significant and a big impact on our financial performance in Borouge. We're looking forward to slowly and gradually revamping the production in 2026,” he said.
Plastics are a major growth area for petrochemicals, and polyolefins account for almost two-thirds of global demand.
Highly versatile, polyolefins have a broad spectrum of end-use applications from hard plastics such as sheets and pipes to softer products like films, bags, and bubble wrap.
However, demand for most petrochemicals was lower than expected last year as geopolitical tensions and high-interest rates weighed on consumption.
While Borouge's fourth-quarter net profit rose about 17 per cent annually, driven by lower costs and expenses, the company reported a 6 per cent drop in quarterly revenue on “weaker global demand”.
Asia, home to several large emerging economies, is the centre of consumption and production, with China the driving force in both polythene and polypropylene manufacturing.
Borouge has three offices in the country located in Beijing, Shanghai and Guangzhou.
“China has been always an important and an excellent market for us. However, there has been also different challenges with the market overall, not only China,” Mr Al Suwaidi said.
Borouge has been focused on producing specialised products tailored for the Chinese market, and these products have resulted in the “highest returns for the company”, he said.
Manufacturing activity in the world’s second-largest economy has slowed over the past few quarters amid weak consumer spending and as a post-pandemic economic rebound has fizzled out.
“In 2024, [global] markets will remain difficult and challenging … we will go in cautiously … but we have all what it takes to deliver a great performance for the company,” the Borouge chief said.
Established in 1998, Borouge, a joint venture between Abu Dhabi state energy company Adnoc and Austrian chemicals producer Borealis, has a workforce of more than 3,100 and customers in more than 86 countries across Asia, the Middle East and Africa.
In May 2022, Borouge raised $2 billion through an initial public offering and was listed on the Abu Dhabi Securities Exchange. The IPO, which was about 42 times oversubscribed, was the largest listing in Abu Dhabi at the time.
After its listing, Borouge was included in the FTSE Global Equity Index Series, which is used by investors globally to guide asset-allocation decisions and support portfolio construction.
Focus on sustainability
A crucial focus for Borouge's new complex will be sustainability, the executive said.
The ethane cracker at Borouge 4 is set to be one of the world’s most efficient, Sultan Al Shehhi, Borouge 4 project director, told The National.
An ethane cracker takes the component of natural gas and converts it into ethylene by heating the ethane to such a high temperature that it breaks the molecular bonds holding it together.
Borouge plans to have “flareless” operations at the plant to lower emissions and may install a carbon capture facility in the future, which will capture “almost all” the carbon produced from the cracker, Mr Al Shehhi said.
“Sustainability was … one of the major elements that we tried to design our plant around,” he said.
Adnoc, Borouge’s majority stakeholder, plans to double its carbon capture and storage capacity goal to 10 million tonnes per annum by the end of the decade, the equivalent of removing more than two million petrol-powered cars from the roads.
About Okadoc
Date started: Okadoc, 2018
Founder/CEO: Fodhil Benturquia
Based: Dubai, UAE
Sector: Healthcare
Size: (employees/revenue) 40 staff; undisclosed revenues recording “double-digit” monthly growth
Funding stage: Series B fundraising round to conclude in February
Investors: Undisclosed
The specs: 2018 BMW X2 and X3
Price, as tested: Dh255,150 (X2); Dh383,250 (X3)
Engine: 2.0-litre turbocharged inline four-cylinder (X2); 3.0-litre twin-turbo inline six-cylinder (X3)
Power 192hp @ 5,000rpm (X2); 355hp @ 5,500rpm (X3)
Torque: 280Nm @ 1,350rpm (X2); 500Nm @ 1,520rpm (X3)
Transmission: Seven-speed automatic (X2); Eight-speed automatic (X3)
Fuel consumption, combined: 5.7L / 100km (X2); 8.3L / 100km (X3)
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
Killing of Qassem Suleimani
Where can I submit a sample?
Volunteers can now submit DNA samples at a number of centres across Abu Dhabi. The programme is open to all ages.
Collection centres in Abu Dhabi include:
- Abu Dhabi National Exhibition Centre (ADNEC)
- Biogenix Labs in Masdar City
- Al Towayya in Al Ain
- NMC Royal Hospital in Khalifa City
- Bareen International Hospital
- NMC Specialty Hospital, Al Ain
- NMC Royal Medical Centre - Abu Dhabi
- NMC Royal Women’s Hospital.
UAE currency: the story behind the money in your pockets
MATCH INFO
Liverpool 3
Sadio Man 28'
Andrew Robertson 34'
Diogo Jota 88'
Arsenal 1
Lacazette 25'
Man of the match
Sadio Mane (Liverpool)
A list of the animal rescue organisations in the UAE
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Revibe%20%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Hamza%20Iraqui%20and%20Abdessamad%20Ben%20Zakour%20%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Refurbished%20electronics%20%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%20so%20far%3A%3C%2Fstrong%3E%20%2410m%20%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFlat6Labs%2C%20Resonance%20and%20various%20others%0D%3C%2Fp%3E%0A
The five pillars of Islam
The specs
Engine: 4.0-litre, twin-turbocharged V8
Transmission: nine-speed automatic
Power: 630bhp
Torque: 900Nm
Price: Dh810,000
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
THE BIO
Ambition: To create awareness among young about people with disabilities and make the world a more inclusive place
Job Title: Human resources administrator, Expo 2020 Dubai
First jobs: Co-ordinator with Magrudy Enterprises; HR coordinator at Jumeirah Group
Entrepreneur: Started his own graphic design business
Favourite singer: Avril Lavigne
Favourite travel destination: Germany and Saudi Arabia
Family: Six sisters
