The Middle East petrochemical industry has experienced leapfrog development since its initiation in the mid-1980s by relying on abundant oil and gas resources and cost advantages. It has become an important force in the world’s petrochemical pattern and leads in ethylene production，refining capacity and refining margins throughout the world. In the meantime，it also faces challenges from overcapacity，alternative energy，other emerging refining competitors，and its own structural defects. Since the beginning of 21st century，the petrochemical industry in the Middle East has begun a new round of capacity expansion. Innovation and enhancement of the added value chain have become an important direction of development. It is anticipated that both quality and quantity can be simultaneously upheld by developing refined petroleum products，and that the competitiveness of the petrochemical industry in the Middle East can be improved.