Business | General
Middle East's petrochemical sector poised for growth
Already a global force to be reckoned with, the Middle East's chemical and petrochemical sector is on the brink of a new era of investment and expansion.
- Staff Report
- Published: 00:33 May 15, 2008
Dubai: Already a global force to be reckoned with, the Middle East's chemical and petrochemical sector is on the brink of a new era of investment and expansion.
The GCC already produces 30 of the most common intermediate petrochemical products, representing seven per cent of worldwide production. This is set to increase to 20 per cent of global output by 2010, with Saudi Arabia accounting for almost half of that increase.
The UAE is investing heavily in its petrochemical industry, and will see capacity increase threefold, opening up new opportunities in the downstream and end-use processing sector.
Investment
An estimated $40 billion in new investments is expected in the GCC chemical and petrochemical sector, including non-oil products such as polymer resins, polystyrene and liquid industrial chemicals, by 2010.
"With petrochemical facilities in Europe and the US facing cutbacks due to increasingly high prices and shortage of feedstock, the Gulf countries have emerged as the world's first choice for new facilities and best choice for investment in this industry," Abdul Rahman Falaknaz, President of International Expo Consults (IEC), organisers of CHEM Middle East exhibition, which takes place between May 18-20 at Dubai World Trade Centre, said in a statement
"The continuing expansion and growth in the Middle East has resulted in a need for more sophisticated logistics and supply chain processes to distribute more than 40 million tonnes of petrochemicals and plastics to over 70 countries on a plant-to-customer basis," Falaknaz said.
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