The Gulf’s petrochemicals output reached $97.3 billion in 2012, a $3.2 billion increase on the previous year, according to the latest industry report by the Gulf Petrochemicals & Chemicals Association (GPCA), the region’s longest standing trade association.
According to the GCC Petrochemicals & Chemicals Facts and Figures 2012 released Wednesday at the 8th Annual GPCA Forum, GCC petrochemicals output has increased by 19 percent a year over the last five years. This is the highest growth posted by any petrochemicals producing region in the world, the report stated.
Last year, the Gulf’s petrochemicals industry earned $52.7 billion in export revenues.
“Over the last three decades, the GCC petrochemicals sector has evolved from a chemical importing industry to one that exports the vast majority of its high-value goods to global markets. This has transformed the region’s economy and created jobs for thousands of people,” said Abdulwahab Al-Sadoun, secretary general of the GPCA.
While the GCC petrochemical industry is in a good position today, regional producers must not be complacent about the future, warns Al-Sadoun.
“Historically, the GCC petrochemicals industry has been cost-leader on a global level primarily due to access to favorably priced feedstock. However, global trends show that cheap raw materials are becoming available elsewhere, so the Gulf’s chemical producers will have to draft more informed strategies in order to maintain their cost leadership.”
The GPCA’s Facts and Figures report is an annual publication on the GCC’s petrochemical industry. Now in its second edition, the report provides information on wide- ranging subjects for the region’s chemicals industry, including product capacity, employment and trade.
“The GPCA encourages a wider debate on key industry issues. Initiatives such as the Fact & Figures report, as well as the Annual Forum, are both exercises in spreading awareness of the issues surrounding the petrochemical industry,” added Al-Sadoun.
Held on the theme of “Innovation: The foundation for chemical value chain leadership,” the 8th Annual GPCA Forum includes a diverse range of spokespeople and this year has welcomed more than 1,700 delegates from 50 countries.
The forum’s plenary address was delivered by Prince Abdulaziz bin Salman bin Abdulaziz, Saudi Arabia’s deputy minister of petroleum and mineral resources, while Stephen Pryor, president, ExxonMobil Chemical Co., also addressed delegates on the opening day.
The GPCA Annual Forum takes place at the Madinat Jumeirah, Dubai.
GCC petchem production reached $97.3bn in 2012
