GCC petrochemical producers are ramping up research and development (R&D) funding despite a global slowdown in investments, according to an official from the Gulf Petrochemicals & Chemicals Association (GPCA)
The need for research was the key focus of discussion at the Research & Innovation Summit, hosted by the GPCA recently.
Local and international industry leaders and executives including Mohammed Al Mady, chairman of the GPCA and CEO of SABIC, provided insights on the subject.
Moayyed Al Qurtas, chairman of GPCA’s Research and Innovation Committee, said,“Chemical companies in the Gulf are pioneers in the Middle East when it comes to building research and development facilities
“While the region’s petrochemicals industry may spend a fraction on research compared to global investment, the GCC has amongst the highest year on year growth rates in R&D expenditure in the world.”
Petrochemicals represent the second largest manufacturing sector in the Gulf, according to the GPCA. The Gulf’s petrochemicals output reached US$97.3bn in 2012, a US$3.2bn increase on the previous year. The industry is also export oriented, with petrochemicals accounting for US$52.7bn in 2012.
In 2012, GCC chemical producers spent an estimated US$380mn on R&D initiatives, just 0.8 per cent of the global R&D spending. However, the 2012 figure also highlighted a 30 per cent growth in investments as GCC petrochemicals producers spent US$266mn on R&D in 2011. With global R&D expenditure rising by just 10 per cent in the same period, it is clear to see the Gulf’s increasing focus on this sector.
GCC petrochemical companies have already stepped up efforts in developing R&D facilities with Tasnee and SABIC launching products development research centres in the recent past. Sipchem in Saudi Arabia, and Borouge in the UAE, are also set to open their own facilities in the near future.
“Moving forward, petrochemical research centres focusing on the performance products are set to become more common in the GCC,” Qurtas added.
