MENA Chemicals: A Tactical Reopening Trade, A Structural Fertiliser Call

Research evidence excerpt

MENA Chemicals: A Tactical Reopening Trade, A Structural Fertiliser Call

Idea

June 9, 2026 04:07 AM GMT

Morgan Stanley & Co. International plc+MMENA Chemicals | Europe Ricardo Rezende, CFA

Equity Analyst

A Tactical Reopening Trade, A Ricardo.Rezende@morganstanley.comSylvia C Richards +44 20 7677-9886

Research Associate

Sylvia.Richards@morganstanley.com +44 20 7677-3354

Structural Fertiliser Call Giulia Faro

Giulia.Faro@morganstanley.com +44 20 7425-7581

Fertilisers remain our preferred GCC exposure over petchems,

EEMEA - Chemicals

with structurally tighter urea markets supporting a more Europe

resilient outlook, despite short-term petchem margin support Industry View No Rating

from disruption. We upgrade SABIC on the improving petchems What’s Changed

Advanced Petrochemicals

backdrop and yield support, while downgrading Yansab as (2330.SE) From To

reopening-driven price normalisation could drive relative Price Target SAR 27.50 SAR 23.50

underperformance. Borouge PLC (BOROUGE.AD) From To

Rating NA Equal-weight

Price Target NA AED 2.90

Key Takeaways

Fertiglobe PLC (FERTIGLB.AD) From To

Fertilisers remain our preferred GCC exposure in chemicals: urea was tight pre- Price Target AED 3.80 AED 4.20

shock and should fare better structurally than polymers. OQ Base Industries (SFZ)

SAOG (OQBI.OM) From To

In Petchems, disruption has lifted prices and margins, but sector oversupply Price Target OMR 0.18 OMR 0.26

remains the core constraint. SABIC Agri-Nutrients

Company SJSC (2020.SE) From To

A Strait reopening would favour Eastern Saudi producers via volumes and

Price Target SAR 135.50 SAR 154.50

logistics, while fertilisers retain the edge.

Sahara International

We upgrade SABIC to Overweight: simplification, a better petchem backdrop and Petrochem (2310.SE) From To