The Borouge 4 Polyolefin Complex in Ruwais, Abu Dhabi, one of the largest industrial construction projects in the UAE has entered its final operational phase and now stands at the center of a transformative global corporate restructuring. The project adds 1.4 million tones per year of polyolefin capacity, taking Borouge’s total annual output to 6.4 million tones and establishing Al Ruwais Industrial City as the world’s largest single-site polyolefin complex.
Furthermore, the project now plays a pivotal role in a broader strategic realignment. ADNOC and OMV have agreed to recontribute the Borouge 4 expansion project at cost, estimated at approximately $7.5 billion, once fully operational by end of 2026, with a projected through-the-cycle EBITDA of approximately $900 million per annum.
Consequently, the project’s total cost value has risen from the original $6.2 billion construction budget to a recontributing valuation of $7.5 billion, reflecting its significance as a cornerstone of the emerging global polyolefins champion.
This milestone in Abu Dhabi’s industrial construction sector parallels other landmark projects in the emirate, including the Al Taweelah Aluminium Recycling Plant, which equally demonstrates the UAE’s commitment to world-scale, low-carbon industrial development.
2026 Status Update: Borouge 4 Polyolefin Complex Enters Ramp-Up and Corporate Transition
The plant began producing output with a gradual ramp-up in 2026, following completion of construction by end of 2025, after which ADNOC and Borealis planned to hand over the facility to Borouge. Additionally, the project has become central to a landmark corporate deal.
The combination of Borouge and Borealis and the acquisition of Nova Chemicals, a North American polyolefin producer, are expected to complete in Q1 2026, subject to regulatory approvals, creating the world’s fourth-largest polyolefins company by nameplate production capacity.
Moreover, Borouge Group International plans to raise up to $4 billion in primary capital in 2026 to achieve MSCI index inclusion and augment an investment grade credit rating. Therefore, the Borouge 4 complex no longer functions merely as a production asset but as a financial engine driving one of the petrochemical sector’s most significant mergers.
The increased production from Borouge 4 is expected to add nearly $1.5 billion to $1.9 billion in revenue annually after recontribution and full production ramp-up.
Construction Scale of the Borouge 4 Polyolefin Complex
Borouge 4, which commenced construction activities in 2022, encompasses an extensive infrastructure, including over 7,500 kilometres of cables, 340,000 cubic metres of concrete, and 77,500 tonnes of structural steel. Indeed, the construction programme demanded extraordinary execution.
The project required over 100 million manhours to deliver, employed over 20,000 people including 46 per cent UAE nationals, and awarded purchase orders exceeding $600 million to local UAE companies. The facility is designed with sustainability at its core, featuring an ethane cracker (EU4) with tie-ins to a future carbon capture unit, and targeting a first-quartile energy efficiency position based on Solomon Associates industry benchmarks.
Furthermore, the facility uses Borealis’ proprietary Borstar technology for the production of high-quality polyolefin solutions, and more than 25% of the total materials and equipment were Made in the UAE. Meanwhile, the project will supply feedstock to the TA’ZIZ Industrial Chemicals Zone, catalysing the next phase of UAE industrial growth and creating opportunities for UAE-based manufacturers.
Borouge 4, a Polyolefin Expansion Project in Abu Dhabi Breaks Grounds
Recently, chemical specialists, Borealis and The Abu Dhabi National Oil Company (ADNOC) broke ground on the US$ 6.2bn Polyolefin Expansion Project that entails the construction of the fourth Borouge facility, also known as Borouge 4 at the firm’s polyolefin manufacturing complex in Ruwais, United Arab Emirates.
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When completed, expectedly in 2025, the Polyolefin Expansion Project will make Borouge the world’s largest and single-site polyolefin complex with the capacity to produce a total of 6.4 million tonnes of polyethylene per year owing to the new 1.4 million tonnes capacity Borouge 4.
The project is also set to enable the Ruwais Industrial Complex’s next phase of growth through the supplying of feedstock to Ta’Ziz. This in effect will enhance the local industrial supply chains further leading to more in-country value opportunities.
Remarks on the Borouge 4, a Polyolefin Expansion Project
The Ruler’s Representative in the Al Dhafra Region, Sheikh Hamdan bin Zayed Al Nahyan applauded both Borealis and The Abu Dhabi National Oil Company for their combined efforts towards the Polyolefin Expansion Project. He also highlighted the company’s role in contributing to the advancement of the petrochemicals industry in terms of further supporting the United Arab Emirate’s sustainable diversification and economic development plans.
Thomas Gangl, CEO of Borealis, acknowledged the Polyolefin Expansion Project of Borouge 4 as being another milestone in the successful business journey and strategic partnership between their company and The Abu Dhabi National Oil Company. On the other hand, the CEO of the ADNOC group, Dr. Sultan bin Ahmed Al Jaber revealed that in terms of sustainability, the project conducted a study for a Carbon Capture Unit, and the results indicated that it would significantly reduce carbon dioxide emissions.
Project fact sheet
Project Name: Borouge 4 Polyolefin Expansion Complex
Location: Al Ruwais Industrial City, Al Dhannah, Abu Dhabi, United Arab Emirates
Project Type: Petrochemical manufacturing and polyolefin production complex
Original Construction Cost: $6.2 billion
Recontribution Value (2026): Approximately $7.5 billion
Additional Production Capacity: 1.4 million tonnes per year of polyolefins
Total Production Capacity (Post Borouge 4): 6.4 million tonnes per year
Construction Commenced: 2022
Construction Completed: End of 2025
Production Ramp-Up: 2026
Full Operational Status and Recontributing Target: By end of 2026
Projected Annual EBITDA Contribution: Approximately $900 million (through-the-cycle)
Projected Annual Revenue Addition: $1.5 billion to $1.9 billion post full ramp-up
Concrete Used: Over 340,000 cubic metres
Structural Steel Used: Over 77,500 tonnes
Cabling: Over 7,500 kilometres
Total Construction Manhours: Over 100 million
Workforce at Peak: Over 20,000 workers
UAE National Workforce Share: 46 per cent
Local Purchase Orders Awarded: Over $600 million to UAE companies
In-Country Value Target: 63 per cent
Key Technology: Borealis Borstar proprietary polyolefin process technology
Borstar Gas Phase Reactors: World’s largest, each exceeding 500 tonnes in weight
Products:
- Polyethylene
- Polypropylene
- High-quality polyolefin solutions
Feedstock Recipient: TA’ZIZ Industrial Chemicals Zone, Ruwais
Project team
Client/Developer:
- ADNOC (Abu Dhabi National Oil Company) — 54% stake
- Borealis AG (Austria) — 36% stake
- Borouge Plc — listed on Abu Dhabi Securities Exchange (ADX)
Technology Provider: Borealis AG — Borstar proprietary polyolefin process and catalyst technology
Post-Merger Entity: Borouge Group International (combination of Borouge Plc and Borealis AG, incorporating Nova Chemicals)
ADNOC’s Post-Merger Stake Holder: XRG (ADNOC’s international energy investment company)
Nova Chemicals Acquisition: $13.4 billion enterprise value; North American polyethylene and packaging technology producer
Listing: Borouge Group International to be listed on Abu Dhabi Securities Exchange (ADX)
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