With the drive toward economic diversification, the chemical and petrochemical sector in Saudi Arabia is accelerating the achievement of the objectives of the Saudi Vision 2030.
The vision, which has made manufacturing the core of its industrial objectives, has provided new business opportunities in addition to supporting the small and medium enterprises in the Kingdom and contribution to job creation.
The chemical industry is one of the fastest growing industries globally and according to a recent report issued by the Gulf Petrochemicals and Chemicals Association (GPCA), the production capacity of the petrochemicals industry in the GCC region witnessed significant growth in 2017. The chemical production reached 167 million tons, mainly driven by the increased production in the Kingdom, which was estimated at 12.7 percent per year.
The Kingdom has achieved a 5.8 percent growth rate in the petrochemical industry outpacing the 3.7 percent growth rate witnessed in the region as a whole.
Asia holds the largest market share in world chemical sales with 61 percent; China comes second with 40 percent.
With the global demand on chemical products, which is expected to double by 2030, the GCC region can have a significant role in meeting it.
Despite the positive outlook of this sector, it encompasses major challenges, including the high costs associated with raw material, and the production costs in addition to limited marketing activities.
Producers of the petrochemicals products are also faced with competitive prices of the products from US, which is using shale gas as its raw material. Limited investments in the technology and innovation is also affecting the development of this industry.
All these opportunities and the challenges facing the industry will be discussed during the 15th edition of the Saudi Plastic & Petrochemicals expo to be held at the Riyadh International Convention & Exhibition Center between Jan. 21-24.
Mohammed Al-Sheikh, marketing manager at Riyadh Exhibition Co., said: “The event aims to shed light on opportunities and challenges associated with this promising sector and tries to propose solutions presented by the leading companies participating in this year’s edition.
“Companies have a golden opportunity in displaying their services and products, showcasing their expertise and discussing with specialized leaders the latest development of this industry to fulfil the objectives set for this industry by the Saudi Vision 2030, and increase the contribution of this vital sector to the national GDP.”
The expo will be witnessing several specialized workshops delivered by industry specialists from the local, regional and international companies.
These events are supported by SABIC, a Saudi diversified manufacturing company, the National Industrialization Company (Tasnee), Saudi Polymers Company LLC (SPCo), Saudi Exports Development Authority, and the Saudi Industrial Property Authority “Modon.”
The vision, which has made manufacturing the core of its industrial objectives, has provided new business opportunities in addition to supporting the small and medium enterprises in the Kingdom and contribution to job creation.
The chemical industry is one of the fastest growing industries globally and according to a recent report issued by the Gulf Petrochemicals and Chemicals Association (GPCA), the production capacity of the petrochemicals industry in the GCC region witnessed significant growth in 2017. The chemical production reached 167 million tons, mainly driven by the increased production in the Kingdom, which was estimated at 12.7 percent per year.
The Kingdom has achieved a 5.8 percent growth rate in the petrochemical industry outpacing the 3.7 percent growth rate witnessed in the region as a whole.
Asia holds the largest market share in world chemical sales with 61 percent; China comes second with 40 percent.
With the global demand on chemical products, which is expected to double by 2030, the GCC region can have a significant role in meeting it.
Despite the positive outlook of this sector, it encompasses major challenges, including the high costs associated with raw material, and the production costs in addition to limited marketing activities.
Producers of the petrochemicals products are also faced with competitive prices of the products from US, which is using shale gas as its raw material. Limited investments in the technology and innovation is also affecting the development of this industry.
All these opportunities and the challenges facing the industry will be discussed during the 15th edition of the Saudi Plastic & Petrochemicals expo to be held at the Riyadh International Convention & Exhibition Center between Jan. 21-24.
Mohammed Al-Sheikh, marketing manager at Riyadh Exhibition Co., said: “The event aims to shed light on opportunities and challenges associated with this promising sector and tries to propose solutions presented by the leading companies participating in this year’s edition.
“Companies have a golden opportunity in displaying their services and products, showcasing their expertise and discussing with specialized leaders the latest development of this industry to fulfil the objectives set for this industry by the Saudi Vision 2030, and increase the contribution of this vital sector to the national GDP.”
The expo will be witnessing several specialized workshops delivered by industry specialists from the local, regional and international companies.
These events are supported by SABIC, a Saudi diversified manufacturing company, the National Industrialization Company (Tasnee), Saudi Polymers Company LLC (SPCo), Saudi Exports Development Authority, and the Saudi Industrial Property Authority “Modon.”
