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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

GCC chemical industry’s revenue climbs 17pc to $84bn

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The GCC chemical industry’s performance has improved on all fronts including in revenue, employment, production capacity and export, marking a key step in its journey towards transformation. This is according to the annual GPCA Facts and Figures report, which was released during the 13th Annual GPCA Forum held in Dubai earlier this week. The report’s findings reflect on this year’s forum theme ‘Executing Transformation and Investing in Growth.’


During the forum, Dr Abdulwahab al Sadoun, Secretary-General of the Gulf Petrochemicals and Chemicals Association (GPCA), announced that production capacity in 2017 reached 166.8 million tonnes, up by 7 per cent YoY, with expectations of further growth in 2018 to 170.9 million tonnes. GCC overseas production capacity reached 18.6 million tonnes with facilities in North America, Europe and Asia.


The GCC chemical industry’s revenue grew by 17 per cent YoY in 2017, reaching $84.2 billion, the fastest rate since 2011, indicating the industry’s move towards higher value products. Saudi Arabia and the United Arab Emirates (UAE) significantly lifted the region posting 19 per cent and 17 per cent increase in revenue respectively.


Supported by the upturn in global demand growth and higher commodity prices during the same year, GCC chemicals trade rebounded significantly, generating $55.6 billion in revenue in 2017. In volume terms, chemicals export reached 70.3 million tonnes. “In keeping with this year’s forum theme of ‘transformation’ the GCC chemical industry is reaching new milestones in both the short and long-term projections.


With 20 new products to be added over the next ten years, the chemical sector will be integral to the region’s diversification efforts and the creation of new industries as regional governments aspire to construct competitive economies that are diversified away from hydrocarbons,” said Dr Sadoun.


“The current trend strongly indicates that GCC players are increasingly investing in growth outside the region and this is impacting positively on their competitiveness in the international arena,” he added.


The chemical sector is one of the leading sources of direct and indirect employment in the GCC, accounts for 3 per cent of total employment in the region.


The industry supports up to 880,000 direct, indirect and induced jobs, i.e. for every job created in the chemical industry, five new jobs are stimulated elsewhere in the economy.


The chemical industry has also proved to be a leader for the integration of national citizens within the private sector, with GPCA member companies boasting a high nationalisation rate of 58 per cent in total workforce.


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