Ethanol is synthesized by hydration of ethylene and by fermentation of foodstuffs, sugar-containing plants, and agricultural wastes. The ethylene hydration process for producing high-purity ethanol for use as a fuel additive is investigated in the context of Middle East market situations. An ethanol production plant using zirconium-tungsten catalysts is modeled using HYSYS and Aspen Plus software. It is shown that the ethanol concentration in the product can be raised from 87% to 99.7% by using an extractive distillation column. The economic aspects of such an improvement in ethanol purity are discussed.