Published on July 14, 2014
To most of the petrochemical industries around the world – innovation is one of the key successes, also for the Gulf Cooperation Council (GCC) countries innovation is the key to the petrochemical industry to remain competitive at a global level. According to the industry experts, in commodity petrochemicals production the Gulf Cooperation Council (GCC) petrochemical industry is noted as a global leader with production capacity of 142.7 million tons. Moreover, if any developments trim downs their production of greenhouse gases, Saudi Arabia will certainly have an optimistic effect on the oozing portfolio, as the region in the GCC states reports more than half of the petrochemicals capacity, with major manufacturers in the kingdom reporting nearly around 64% of the region’s capacity.
As per the researched report, in the year 2013 the petrochemicals industry which is the second largest manufacturing industry of GCC had revenue close to USD 100 billion which brought a rise of around 3.7% compared to 2012, whereas in Saudi Arabia the Petchem industry in particular had grew by 4.3% and the GDP of the petrochemical industry in Saudi Arabia was reported to be 3.8%.
According to the industry experts, at present to maintain the growth of industry talent and investment in technology are the major factors, including innovation which is a must in today’s world to remain competitive at a global level and in the game of innovation the Gulf region will have to boost their efforts to widen their confined innovation capabilities faster.
Moreover, to leverage feedstock developments more effectively the petrochemical players of Gulf Cooperation Council (GCC) have many options which entail more upstream assimilation within the value chain and can even merge the industry and build scale or expand into specialty products.
In stipulations towards fertilizer industry in Gulf region, the fertilizer manufacturers of Saudi Arabia have a major opportunity with the increasing world population and to need to increase the world food production by 60% and as per the data of 2013, the Gulf industry is mounting twice as fast as the global industry average with capacity reaching 42.7 million tons with a rise of 4% from the year 2012, according to the researched report.
Furthermore as per the industry experts, by now strategies to reduce greenhouse gas emissions has been implemented by most of the producers and a newly joint ventured Waad Al-Shamal complex between Mosaic, Maaden and Saudi Basic Industries Corporation (SABIC) will have a production capacity of 16 million tons/year and is expected to start up by late 2016.
However according to most of the industry experts, to drive the growth across the petrochemical industry the key factors technology and innovation will help the region to keep hold of its position as a global petrochemical leader.
