DUBAI: With revenues reaching almost $88bn in 2014, the petrochemicals industry contributed to 31% of the GCC’s total manufacturing GDP, according to the latest industry report by the Gulf Petrochemicals and Chemicals Association (GPCA).
Petrochemical production in the GCC rose by 8.3 percent in 2014, making the GCC the second-highest growth region in the world. However, the slumping oil prices and the economic slowdown in China have had a direct negative impact on petrochemicals prices, with revenues declining from $89.4bn in 2013, according to the GCC Petrochemicals and Chemicals Facts and Figures 2014, which will be released at the 10th Annual GPCA Forum in November 2015.
"The health of the global economy since the decline in oil prices and the slowdown of the Chinese economy combined with the possibility of a nuclear deal with Iran, contributed to weak petrochemicals prices and created a difficult near-term outlook for the global petrochemicals and chemicals sector," says Dr Abdulwahab Al Sadoun, Secretary General, GPCA. "Given that the GCC petrochemicals producers are not price-setters, it means that Arabian Gulf producers need to be more agile, collaborative and innovative to succeed."
"Looking ahead, the long term scenario is more positive. The industry is forecasted to grow at 6% per annum over the next five years, with the region producing over 190 million tons of petrochemicals annually by 2020," adds Dr Al-Sadoun. "The drive into higher value products, such as speciality and performance chemicals, is gaining momentum and is expected to act as a catalyst for an even stronger growth of the GCC petrochemical industry in the years to come."
"With the industry being such a substantial part of the GCC’s GDP, we feel it is essential to open the door to encourage informed, thoughtful discussions and debate on the key issues that revolve around it," concluded Dr Al-Sadoun.
"The GPCA’s Facts and Figures report, and the Annual Forum, are platforms through which we educate and engage, as well as demonstrating the achievements of the petrochemicals industry and anticipating its future."
The GPCA’s Facts and Figures report is an annual publication will be released at the GPCA’s Annual Forum on November 17, 2015. Currently in its fourth edition, the report provides information on wide-ranging subjects for the region’s chemicals industry including product capacity, employment and trade.
GPCA represents the downstream hydrocarbon industry in the Arabian Gulf. Established in 2006, the association voices the common interests of more than 240 member companies from the chemical and allied industries, accounting for over 95% of chemical output in the Gulf region. The industry makes up the second largest manufacturing sector in the region, producing up to US$102.6 billion worth of products a year.
Committed to providing a regional platform for stakeholders from across the industry, the GPCA manages six working committees – Plastics, Supply Chain, Fertilizers, International Trade, Research and Innovation, and Responsible Care – and organizes six world-class events each year. The association also publishes an annual report, regular newsletters and reports.
QNA
