DUBAI -- The world’s macro-economic realities mean that the
chemical industry in the Arabian Gulf must push ahead with investments to
innovate and add value to their products, according to the UAE energy minister.
In his keynote speech at the 10th
Annual GPCA Forum of the Gulf Petrochemicals and Chemicals Association (GPCA)
this morning, Suhail Mohammed Faraj Fares Al Mazroui urged GCC petrochemicals’
producers to continue to invest and innovate in their businesses to ensure the
continued growth of the industry.
Celebrating its 10th edition this year,
the Annual GPCA Forum is GPCA’s flagship event and a key feature on the global
chemical industry agenda, providing a crucial knowledge sharing and networking
platform for regional and global stakeholders. Over 2,000 petrochemical and chemical
industry leaders are attending this year’s edition, held under the theme
‘Building on Achievements: Enabling Continued Success in the Changing Chemical
"Leadership in petrochemicals is a
crucial area for the GCC, serving as a catalyst for economic diversification
and innovation, and making people’s lives better all over the world," Mr.
Al Mazrouei said, adding, "I believe that keeping an open business mindset
is fundamental to developing new ways to add value to the industry."
The energy minister told the audience
of industry leaders and representatives of some of the region’s largest
petrochemicals and chemicals companies that the industry must build on existing
synergies within the region and strengthen their understanding of the needs of global
customers to broaden their innovations beyond research and development. GCC
countries must also continue enhancing their infrastructure to create a strong
multiplier effect on the broader economy.
"Having successfully built up
scale and share of the global market over the last 50 years, we have now
reached a very interesting inflection point. Global macro-economic realities
mean that the industry must push ahead with its investments to innovate and
move even further up the value chain," he pointed out. "When I look
across the region, I see companies and executives who fully understand the
challenges, and are making all the right moves to drive the industry
Al Mazrouei praised Borouge and other
GCC petrochemical leaders for leading innovations that will drive their
long-term sustainable growth into the future.
The GCC’s petrochemicals exports
account for an 8.5 per cent share of the global market, with production
capacity reaching above 136 million tons in 2014. While Saudi Arabia continues to
be the leading producer of chemicals in the region, other GCC countries, with
the exception of Bahrain, are steadily expanding their production as well, with
the largest growth taking place in the UAE and Oman during the past decade.