Building leaders for the Middle East’s specialty chemical future
The Middle East’s chemical sector is undergoing a profound transformation, and navigating this change is ultimately a test of leadership. The companies that will succeed are those that cultivate leaders equipped for the future, writes Suhas Anand, Partner at Heidrick & Struggles.
The chemical industry has long been a cornerstone of the Middle East’s economic landscape, contributing to 33 percent of the total Gulf Cooperation Council (GCC) manufacturing gross domestic product (GDP) and 4 percent of total GCC gross domestic product.
Historically dominated by bulk commodity production, national diversification strategies such as Saudi Vision 2030 and UAE Vision 2031 have reordered priorities while initiatives like Operation 300 billion continue to emphasize the importance of the industrial sector. Today, the chemicals industry stands at an inflection point.
The shift to speciality chemicals
Commodity chemicals – produced in high volumes, standardized and price-driven – have served as the foundation of the Middle East’s chemical growth. But with price volatility and an increasing focus on innovation and sustainability, the region is diversifying into specialty chemicals – a segment that offers higher margins and often greater value through products designed in close collaboration with customers.
This also increases in-country value and provides challenging opportunities for high-caliber local talent – two areas that GCC countries are working towards. Regional leaders like SABIC have already begun to respond by pivoting to specialty chemicals as part of their future growth strategy. With this shift in operating models, however, a question lies in whether leadership capabilities in the region are evolving fast enough to deliver on the transformation.
Leveraging the META framework, which stands for mobilize, execute and transform with agility and ranks leadership core competencies, our analysis of chemical leaders in the Middle East shows a distinct contrast between the skills that have enabled success in commodities and those required in the forthcoming specialty era. The strengths of commodity leaders tend to lie in resilience, foresight and drive for results.
On the other hand, they scored lowest on competencies around putting customers first, learning, disrupting and embracing challenges, leading innovation and building talent and teams – all of which will be indispensable amid the sector’s rapid transformation.
Leadership imperatives for the specialty era
One critical skill set is the ability to think big picture and long-term. Commodity leaders are often excellent operators, but specialties demand foresight: the ability to anticipate future needs, understand market shifts – from artificial intelligence (AI) adoption, environmental, social, and governance (ESG) trends, to supply chain challenges – and translate them into long-term strategies that align with customer inputs.
For example, to benefit from Saudi Arabia’s efforts to reduce oil dependence, leaders had to take a multi-decade perspective to make the necessary chemical investments in line with the national roadmap – these investments don’t happen overnight.
Equally crucial is for leaders to have the capacity to inspire and coach their teams. Traditional organizations in chemicals are often hierarchical, with team management focused on key performance indicators and structured processes. Specialty leadership requires something different: leaders who can act as talent magnets and build diverse teams.
The challenge lies in scaling beyond being good people managers to becoming leaders who can inspire. Empathetic coaching skills and emotional intelligence are essential attributes to help leaders support team aspirations, and most importantly, talent development. By adopting a coaching mindset as opposed to just directing, leaders can then develop high-performing teams oriented toward continuous learning to capture the long-term growth prospects of the specialty chemicals industry.
Furthermore, at the heart of the specialty transition is innovation. Achieving success in specialties demands innovation not just in products but also in processes and the way customers are engaged. This is not optional, as innovation will be what drives customer stickiness and prevents margin erosion. Leaders must be ready to challenge traditional ways of working while cultivating an innovative culture and experimental mindset.
Not only do leaders play a significant role in coaching their teams to adopt such a mindset, but they must also ensure the environment is conducive for innovation, such as revamping performance management systems to actively support risk-taking and feedback loops.
The final, and no less essential, leadership imperative is the ability to foster collaboration, both internally and externally. In commodities, leadership is often anchored on efficiency and cost minimization. Specialties, however, thrive on customer intimacy and co-creation. This means that leaders must drive strategic collaboration not only within their organizations but also with the wider ecosystem – including vendors, customers and research and development centers.
Emotional intelligence, once again, becomes a prerequisite for leaders to engage in meaningful dialogue, articulate complex ideas and develop solutions that address customer needs as they evolve.
Building the next generation of chemical leaders
Recognizing these imperatives is just the first step – what matters next is ensuring organizations have the right leadership pipelines in place to meet them. Too often, succession planning strategies focus on replicating the incumbent’s profile. But as organizational direction evolves, organizations must prioritize leaders for tomorrow, not today.
Beyond looking for candidates with future-fit capabilities, boards and leadership teams also need to deepen their leadership pipelines with visibility into high-potential talent at least three levels below the CEO. In addition, broadening perspectives through external hiring will be critical.
Research from Heidrick & Struggles found that Asia Pacific and Middle East chemical CEOs have significantly less cross-border and cross-sector experience than peers in other regions, and only 7 percent are non-nationals. Bringing in external leaders can inject fresh thinking and accelerate the specialty transition.
Conclusion
The Middle East chemical sector is on the cusp of a profound transformation, with the specialty chemicals market projected to reach $46.08 billion in the next five years, at a compound annual growth rate (CAGR) of 4 percent from 2025 to 2030. The pivot from commodities to specialties is ultimately a test of leadership. Companies that come out successful are those who cultivate leaders ready for the future – not anchored in the past.
