Sales of the listed petrochemical firms hit roughly SR303 billion by the end of 2013 which accounted for 11 percent of the Kingdom’s gross domestic product (GDP) registering SR2.79 trillion, local media said.

Saudi Basic Industries Corp. (SABIC) captured the highest portion of the sector’s sales at 62.3 percent, followed by PetroRabigh at 16.7 percent, Tasnee 6.0 percent, Saudi Kayan 3.4 percent, and Yanbu National Petrochemical Company (Yansab) at 3.1 percent.

The Asian markets received 33.0 percent of the petrochemical sectors’ sales in 2013, followed by the Middle Eastern markets at 19 percent, Europe (15.0 percent), local markets (14.0 percent), the United States (7.0 percent), and Africa, the least recipients, at 5.0 percent, the report said.

The petrochemical industry firms had their profits raised by 3 percent in 2013 to hit SR34.77 billion compared to SR33.9 billion in 2012. SABIC’s profits accounted for 72 percent of the sector’s overall profits.

In a related development, the GCC countries are set to inject new investments worth $50.3 billion (SR188.6 billion) into the petrochemical sector in the next five years, according to a recently-released report.

The new investments will raise GCC petrochemical production from 105 million tons to nearly 158 million tons by 2016, the report, prepared by the Diplomatic Center for Strategic Studies (DCSS), said.

In this context, Assad Jamil Al-Ghamdi, an industrial expert, said most of gas produced in the GCC countries (with the exception of Qatar) is the “associated gas” and no new gas discoveries were so far made in the region. Majority of gas comes from methane which is primarily allocated for the production of methanol and fertilizers. So far, no discoveries were made on ethane gas or liquid gases such as propane or butane which are basis for major part of petrochemical products such as poly ethylene, poly propylene, ethane glycol, and styrene in the region, he said.

He wondered how the GCC could increase production from 105 million tons to 158 million tons in the absence of new gas discoveries unless it is intended to exploit methane gas to make more products related to methanol and fertilizers.