MOSCOW (MRC) -- The Gulf Petrochemicals and Chemicals Association (GPCA), the voice of the chemical industry in the Arabian Gulf, has highlighted the growth and success of the chemical industry in the Arabian Gulf following the release of ‘GPCA Pulse of the Chemical Industry Report’ today at the 14th Annual GPCA Forum, which took place from December 3-5, 2019 at Madinat Jumeirah, Dubai, said Gpca.
The report highlights chemical production, export, sales, job creation and investments made in the Arabian Gulf in 2018.
This year, the forum themed ‘Winning through Strategic Partnerships’ was inaugurated by His Excellency Dr. Mohammed bin Hamad Al Rumhi, Oman’s Minister of Oil and Gas. It included a prestigious speaker line-up that consisted of senior industry leaders, representing some of the world’s largest chemical firms.
The report outlined that the GCC chemical industry achieved a revenue of USD 84.1 billion in 2018, with production capacity reaching 174.8 million tons, signaling an increase of 2.8% in terms of contribution to the regional GDP. Due to the increased demand of chemicals by the GCC producers across the globe, the production capacity of the GCC chemical industry was also added by 13.3. million tons in 2018.
The report has revealed that Oman’s chemical sector has the highest contribution to GDP among the GCC countries, with 5.1% in 2018, double the figure in the region. This achievement is attributable in part to the manufacturing sector being inscribed within the top five sectors identified by Oman’s National Program for Diversification.
Saudi Arabia has maintained its exceptional standing in 2018, retaining its spot in the top ten exporters of chemicals today globally. It is also the region’s powerhouse, with the largest volume output and chemical sales revenue. In 2018, Saudi producers generated USD 62 billion in revenue. The Saudi chemical industry is also a champion in terms of portfolio diversification, with GPCA member companies in Saudi Arabia producing as many as 126 products with a total capacity of 119.2 million tons.
As MRC informed earlier, The Gulf Cooperation Council's (GCC) ethylene production capacity is expected to surge by 53% over the next decade to reach 39.4m tonnes/year in 2029. This translates to about 1.5m tonnes/year of new ethylene capacity additions, compared with 1.2m tonnes/year in 2010-2018, the GPCA said in a report released at its annual forum in Dubai. The GCC's overall ethylene production capacity stood at 25.8m tonnes/year in 2018. The region has a significant competitive cost advantage compared to other parts of the world, as most ethylene production is ethane based. Saudi Arabia will account for half of the incremental ethylene capacity additions.