ABSTRACT Studies show that global Titanium Dioxide (TiO2) consumption is expected to grow at a compound rate of 2.8% per annum over the decade up to 2010. TiO2 world trade currently exceeds US$ 10 billions per annum. Although, the Saudi TiO2 market alone represents about 25% of total Middle East consumption of TiO2, so far, no rigorous study has been made about this market. The rationale for an in-depth market analysis of TiO2 can be attributed to the success of Cristal Company which attained the second rank in the world market of Titanium Dioxide in terms of production. The goal of this research is to develop a suitable forecasting model for the demand of TiO2. The objectives include an in-depth study of TiO2 market in Saudi Arabia, understand the factors that affect the TiO2 demand in the Kingdom, determine opportunities in this developing market, ascertain the level of per capita consumption of TiO2 in Saudi Arabia. Also the study aims to underline the global factors related to price behavior in order to understand the factors that affect the price fluctuations in the market and compare them with the international market. The methodology adopted was to collect relevant data on the TiO2 demand, and the most influencing factors on the demand were determined for the development of a multiple regression model for forecasting of demand. Statistical analyses were conducted on the collected data using Minitab. Various forecasting methods were used in addition to the multiple regression method. A comparative analysis was performed in order to come up with best model. Data were also collected on the TiO2 prices and their influencing factors in order to develop a forecasting model for the price. It was found that six factors are influencing the TiO2 demand in Saudi Arabia which are: country Gross Domestic Product for both current and previous year, Population, Interest Rate on bank deposits, Money Supply and Stock Market performance. The study indicated that TiO2 prices are mainly dependent on the global demand of the product.