Borouge, the joint venture between Adnoc and Austrian chemicals producer Borealis, has signed a new agreement to expand its footprint in East Africa and boost sales of its products.
The company signed the distribution agreement with Somochem, one of the biggest polyolefin distributors in East Africa, Borouge said on Wednesday.
The development comes on the back of Borouge’s significant growth in market share in the region.
Last year, the company increased its sales of advanced packaging solutions in East Africa to Dh496 million ($135 million) and sales of energy and infrastructure solutions to Dh184 million.
Established in 1998, Borouge is a petrochemical company with a 3,100-plus workforce, serving customers in more than 50 countries across Asia, the Middle East and Africa.
It provides polyolefin solutions for the agricultural, infrastructure, energy, advanced packaging, mobility and healthcare industries.
In May last year, Borouge raised $2 billion through an initial public offering and was listed on the Abu Dhabi Securities Exchange.
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.
“We are sharpening our focus on the growing demand in East Africa, now a major strategic market for Borouge,” Khalfan Al Muhairi, senior vice president for MEAE region at Borouge said.
“We identified a gap in the region for multiple premium solutions, enabling us to unlock opportunities to grow our market share over the next five years.
Its portfolio of products includes polythene and polypropylene — the two most common forms of polymer — which are used in a variety of products including pipes, fittings, wires and cables as well as in products that have automotive, sustainable packaging, agricultural and medical applications.
Borouge is bullish on East Africa and aims to capitalise on the new opportunities in the region amid rapid economic growth.
Economic growth in East Africa is projected to reach 5 per cent in 2023 and 5.4 per cent in 2024, it said citing data from the African Development Bank.
“Market demand has been driven by the rapid and substantial infrastructure investment, healthcare improvements, rising living standards and urbanisation,” Borouge said.
The company plans to launch new grades of advanced packaging solutions in East Africa, to capitalise on the growing demand for premium products.
In February, Borouge reported an 8 per cent rise in its 2022 revenue on higher sales volumes. Revenue for the 12-month period ending in December climbed to $6.72 billion, from $6.22 billion in 2021.
Total sales volume grew by about 15 per cent as Borouge increased production from its fifth polypropylene unit, which raised the company’s production capacity by 500,000 tonnes a year.
Polypropylene, Borouge's main product, is a thermoplastic material used in products including plastic packaging, car parts and textiles.
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More on animal trafficking
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
On the menu
First course
▶ Emirati sea bass tartare Yuzu and labneh mayo, avocado, green herbs, fermented tomato water
▶ The Tale of the Oyster Oyster tartare, Bahraini gum berry pickle
Second course
▶ Local mackerel Sourdough crouton, baharat oil, red radish, zaatar mayo
▶ One Flew Over the Cuckoo’s Nest Quail, smoked freekeh, cinnamon cocoa
Third course
▶ Bahraini bouillabaisse Venus clams, local prawns, fishfarm seabream, farro
▶ Lamb 2 ways Braised lamb, crispy lamb chop, bulgur, physalis
Dessert
▶ Lumi Black lemon ice cream, pistachio, pomegranate
▶ Black chocolate bar Dark chocolate, dates, caramel, camel milk ice cream
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 201hp at 5,200rpm
Torque: 320Nm at 1,750-4,000rpm
Transmission: 6-speed auto
Fuel consumption: 8.7L/100km
Price: Dh133,900
On sale: now
