Petrochemicals production in the GCC rose by 4.5% in 2014, the second highest growth region in the world, according to the Gulf Petrochemicals and Chemicals Association’s (GPCA) Annual Report 2014.
Regional growth in chemicals production is largely attributed to a surge in plastic production, which grew by 6% in 2014, nearly twice the worldwide average. Meanwhile, global production of chemicals rose by 2.8% last year, a similar figure from 2013.
"This development is testament to that the ambitious growth plans of the Arabian Gulf’s chemicals industry is based on solid fundamentals," said Dr. Abdulwahab Al Sadoun, Secretary General, GPCA.
"The region has grown nearly 60% over the global average, an achievement that is made all the more significant when you consider that this progress was made despite continuing economic uncertainty in Europe and recent slowdown in China," he said.
"While production growth is certainly a positive development, GCC chemicals producers must not rest on their laurels. The petrochemicals sector is tied into global economic trends and demographic demand, meaning that we in the Arabian Gulf could be affected by developments from around the world," advised Dr. Al-Sadoun.
"However, what we are seeing in the GCC is that local producers are not only expanding capacities but also capturing value added opportunities, Safco’s new fertilizer plant, for example, is capable of capturing 850,000 million tons of carbon dioxide per year enabling this Sabic affiliate to be the operator of one of the largest carbon capture and utilization facilities in the world.