Petrochemical production to rise |
|
Text Size 
The Middle East region will increase its share of global petrochemical products to 15 per cent by 2015 from the current nine per cent.
The size of the regional industry is approximately 94 million tonnes per annum while 20 per cent of the world's global ethylene consumption is from the Gulf. Asia accounts for a majority of chemical exports from the Gulf followed by the Gulf, Europe, the United States, Australia and South Africa.
However, the scenario is changing with the global financial crisis. The impact of the crisis on the petrochemicals industry will be the focus at a forthcoming forum in Dubai.
The global financial crisis will be a key topic for discussion as industry leaders gather at the third annual GPCA Forum, which is organised by the GPCA in Dubai.
Attendees at the Middle East's largest petrochemicals conference will have much to discuss as the economic crisis has exacerbated the cyclical decline which was already forecast for late 2008. Industry leaders will focus on ways of tackling the difficult times ahead even as several global producers report year-over-year demand declines of 20 per cent or more.
One of the speakers on the opening day, Hassan Ahmed, Managing Director, HSBC Securities (US) will make a presentation titled "The Financial Crisis: Where Does the Global Chemical Sector Go from Here?". The impact of a steep downturn in the petrochemical cycle will also be addressed as part of other sessions throughout the program agenda.
Abdullah S bin Zaid Al Hagbani, Secretary-General of the Dubai-headquartered GPCA said that the GPCA Forum will offer a comprehensive programme of timely, relevant general sessions that have been designed to address the issues affecting today's global petrochemicals industry.
Al Hagbani acknowledged that the financial crisis which started in the US is now global and was impacting the real economy including the petrochemicals sector.
"Expectations are for a significant slowdown in global economic growth going into 2009. This is likely to result in excess capacity in many industries including the petrochemical industry and will lead to consolidation, reduced product demand, softer pricing and lower profitability," he said.
"The combination of a global financial crisis with constrained credit availability along with a recession in major consuming regions and a slowdown in global economic growth creates a very difficult environment for the petrochemical industry - perhaps quite different from anything we have experienced in the past".
He added: "In terms of the global petrochemicals and chemicals association, there is absolutely no doubt about the Gulf's strategic importance. By working towards a common goal and sharing our resources we can further enhance the role of this region in international debate, facilitate regional co-operation and ensure growth that is both sustainable and socially responsible.
"We are confident that the GPCA will play an important role towards this end,"said the secretary-general.
He said that over the past 20 years, the Gulf has evolved as a major hub of petrochemical activity now accounting for a major share of global petrochemical manufacturing capacity.
GPCA serves as a regional focal point for Gulf companies to work jointly in addressing common issues such as global warming, best practiced with respect to safe operations, human resources, supply chain operations and a host of activities to strengthen our industry and promote its benefits.
By Staff Writer
© Emirates Business 24/7 2008
Community Comments (0) - 
Comment on this article 
Comment on this article
The opinions of the authors expressed herein do not necessarily state or reflect Zawya. Read our Comment Policy.
Loading ...
Zawya Comment Policy:
-
Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
1.1 Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
1.2 Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
1.3 Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
1.4 Be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety.
1.5 Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
1.6 Give the impression that they represent Zawya.
1.7 Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse. - The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
- Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
- By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
Community Buzz
Stories
Companies
Most viewed companies by Community in the last 24 hrs
| Company Name | Country | Industry |
| Qatari Diar Real Estate Investment Company | Qatar | Landlords and Developers |
| Dynasty Al Zarooni Real Estate | UAE | Agents and Brokers |
| Nakheel | UAE | Landlords and Developers |
| Mubadala Development Company | UAE | Investment Firms and Funds |
| Emaar Properties | UAE | Landlords and Developers |
| Investment Corporation of Dubai | UAE | Investment Banking |
| Global Investment House | Kuwait | Investment Banking |
| Emaar the Economic City | Saudi Arabia | Landlords and Developers |
| Qatar Investment Authority | Qatar | Investment Firms and Funds |
| Abu Dhabi Investment Council | UAE | Investment Firms and Funds |
Projects
Most viewed projects by Community in the last 24 hrs
| Project Name | Country | Sector |
| Ras Tanura Integrated Refinery and Petrochemicals Complex | Saudi Arabia | Oil and Gas |
| Qatalum Aluminum Smelter | Qatar | Industry |
| QP - Al Shaheen Refinery | Qatar | Oil and Gas |
| KNPC - Al Zour Refinery | Kuwait | Oil and Gas |
| Dubai RTA - Dubai Metro - Purple Line | UAE | Infrastructure |
| Qatar Foundation - Sidra Hospital | Qatar | Real Estate |
| WDEPC - Abu Qir Power Plant Expansion - Civil Works | Egypt | Power and Water |
| ADCO - SAS Field Development | UAE | Oil and Gas |
| Saadiyat Island Development - Saadiyat Resort and Beach Residences (Phase 1) | UAE | Real Estate |
| IPIC - Abu Dhabi Crude Oil Pipeline (ADCOP) | UAE | Oil and Gas |