Petrochemical production in the GCC rose by 8.3 per cent in 2014, making it the second-highest growth region in the world, according to latest industry report by Gulf Petrochemicals and Chemicals Association (GPCA)
With revenues reaching almost US$88bn in 2014, the petrochemicals industry contributed to 31 per cent of the GCC’s total manufacturing GDP, the report added.
However, the falling oil prices and economic slowdown in China have had a direct negative impact on petrochemical prices, with revenues declining from US$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.
Abdulwahab Al-Sadoun, secretary general of GPCA, said, “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.
“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.”
Al-Sadoun added that looking ahead, the long-term scenario is more positive. The industry is expected to grow at six per cent per annum over the next five years, with the region producing more than 190mn tonnes of petrochemicals annually by 2020.
As the region’s largest petrochemical producer, Saudi Arabia’s manufacturing portfolio comprised 63 per cent of the region’s chemical portfolio and earned US$68.3bn, followed by Qatar’s revenues of almost US$8bn. The GCC’s total chemical capacity for 2014 exceeded 136.2mn tonnes.
The strong sector attracted considerable GCC nationals into its workforce in 2014, with a nationalisation rate of 67 per cent among GPCA member companies.
The GPCA’s Facts and Figures report is an annual publication and will be released at the GPCA’s Annual Forum on 17 November 2015.
Now in its 10th edition, the annual forum will begin with a keynote from Suhail Mohamed Faraj Al-Mazrouei, minister of energy for the UAE. Abdullatif A Al-Othman, governor and chairman of the board of directors, Saudi Arabian General Investment Authority (SAGIA) will deliver this year’s opening address.
Other notable industry leaders that have confirmed participation include Rashed Saud Al-Shamsi, chairman GPCA and petrochemicals director, ADNOC; Yousef Al-Benyan, vice-chairman, GPCA and acting vice-chairman and CEO SABIC; Nizar M Al-Adsani, deputy chairman and CEO Kuwait Petroleum Corporation and Neil Chapman, president, ExxonMobil Chemical.
