GCC chemical industry investments top $140bln

The forum will discuss the role of fostering partnerships across the entire value chain to increase the chemical industry’s competitiveness in the GCC and globally

  
GCC leaders pose for a photo during the Gulf Cooperation Council (GCC) summit in Mecca, Saudi Arabia May 30, 2019. Picture taken May 30, 2019. Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS

GCC leaders pose for a photo during the Gulf Cooperation Council (GCC) summit in Mecca, Saudi Arabia May 30, 2019. Picture taken May 30, 2019. Bandar Algaloud/Courtesy of Saudi Royal Court/Handout via REUTERS

REUTERS

GCC chemical related investment has exceeded $140 billion in the first 10 months of 2019 led by consolidation, joint venture agreements and increased number of merger and acquisition (M&A) deals, according to estimates by the Gulf Petrochemicals and Chemicals Association (GPCA), the voice of the chemical industry in the Gulf region.

The multi-billion-dollar investments made both within the region and international markets in the areas of refining, petrochemicals, distribution, storage supported by a wave of strategic partnerships between regional players and multinational heavyweights, indicate a strong year for M&A deals and a renewed drive by regional producers to consolidate their business, build critical mass, diversify their business portfolio and expand access to high-growth markets, it said.

With the theme, ‘Winning through Strategic Partnerships’, the 14th Annual GPCA Forum held on December 3 to 5, at the Madinat Jumeirah, Dubai, UAE, will discuss the role of fostering partnerships across the entire value chain to increase the chemical industry’s competitiveness in the GCC and globally.

Representatives from the largest industry players including Sabic, Saudi Aramco, LyondelBasell, ExxonMobil Chemicals, BASF, Oman Oil and Orpic Group, Sipchem, Maaden, Evonik, Total and others will provide progress updates on the milestone deals signed this year and highlight the role of collaboration to build market leadership and create value within industry, economy and society, while meeting the needs of the future.

In announcing their new organisational structure, Oman Oil Company and Orpic Group have pledged to invest $28 billion in next 10 years. Dr Mohammed bin Hamad Al Rumhi, Minister of Oil and Gas, Oman, and chairman, OOC, will deliver the inaugural address at the forum to provide an update on the future plans of Oman and the chemical industry’s strong contribution in regional growth.

Dr Abdulwahab Al Sadoun, secretary general, GPCA, said: “The recent series of joint ventures, consolidation deals and acquisitions demonstrate the role of partnerships in the industry’s future strategic direction and continue to build on the region’s reputation as a reliable, long term partner in the global chemical arena.”

“These developments will result in greater competitiveness in the regional chemical industry by enabling it to leverage economies of scale, accelerate innovation and greater market leadership,” he said.

“We can expect to see more of these large-scale alliances across the entire value chain, built on strong and stable platforms of leading-edge technologies between partners from across the board, combining resource and feedstock supply, product application know-how, and growth-market access. Partnerships that help chemical players stay agile and resilient and quickly adjust to changes in the worldwide economic picture will be increasingly sought after,” he added.

Attracting over 2,100 international and regional chemical executives each year, the Annual GPCA Forum is a leading platform for both global and regional producers to discuss and debate key challenges and opportunities, make new business connections and renew existing relationships.

It provides a unique opportunity for industry professionals from the Middle East and beyond, who are eager to showcase their capabilities, meet with key business partners, and keep up to date with the latest industry trends.

The forum’s programme includes a prestigious line-up of speakers including Yousef Al-Benyan, CEO, Sabic and chairman, GPCA, Bob Patel, CEO, LyondellBasell and president of the International Council of Chemical Associations (ICCA), Karen McKee, president, ExxonMobil Chemical Company, Saori Dubourg, member of the board of executive directors, BASF, and Eelco Hoekstra, chairman executive board and CEO, Royal Vopak among others, it stated. – TradeArabia News Service

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