JEDDAH — At a time when the international balance of economic power continues to shift eastward, Gulf petrochemical producers are exploring opportunities to expand capacity, diversify production and realize the region's full potential, the Secretary General of the Gulf Petrochemicals and Chemicals Association (GPCA) said. Speaking ahead of the 7th Annual GPCA Forum, which will take in Dubai from Nov. 27-29, 2012, Dr. Abdulwahab Al-Sadoun highlighted that 2011 was a banner year for the Gulf producers not only in terms of output, which exceeded 120 million tons which is a 13.5 percent growth compared with 2010 output, but also in terms of sales revenues which increased by 29 percent from $58.4 billion in 2010 to $75.6 billion in 2011. With several projects to come on stream within the next few years, the GCC's position as one of the emerging hubs of the global petrochemical industry will be cemented. “The theme of our upcoming forum, ‘Sustaining competitiveness in a rapidly changing world,' reflects the scale of the challenges and opportunities facing the regional petrochemicals industry, which is a key contributor to the Gulf's sustained growth,” said Al-Sadoun. “The ongoing economic slowdown in global demand due to the recession in the US and the European financial crises could adversely impact the global as well as the regional petrochemical producers through lower revenues. However, in the Middle East we are on more solid ground, but the global economy's slow-down represents a key concern to all of us. It may create uncertainties about the future growth of the global economy and, subsequently, on our strategic hydrocarbon industries,” he added. Given that historical demand for oil and petrochemicals is influenced by changing and interrelated factors such as economic and population growth, the theme of the GPCA forum this year is both timely and critical. And against the backdrop of weakening global growth, ‘Sustaining Competitiveness' by producers and exporters will remain a priority for all in the hydrocarbon sector throughout good and bad times, he further said. “To ensure our future success,” he continued, “all participants in the sector need to work more closely together to develop innovative, integrated strategies that will lead to enhanced competitiveness and the creation of new, high-skilled jobs. The 7th Annual GPCA Forum represents a critical occasion for everyone in the industry to take part in this important dialogue.” Beside the expansion of the indigenous petrochemical production capability, the Gulf producers from Saudi Arabia, Kuwait, Qatar and Abu Dhabi are embarking on an aggressive growth strategy through the acquisition of assets in major markets. Abu Dhabi adopted an ambitious inorganic growth strategy designed to strengthen its industry's position in the plastics sector, both in terms of the products portfolio and access to advanced technology. In 2009 IPIC acquired Nova Chemicals of Canada a deal that extended IPIC's footprint to North America, after having acquired a 64 percent stake in the European polyolefins major, Borealis. — SG
