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FINANCIAL NEWS
GCC petchem grew 11 percent in 10 years
08 Jan 2015
(MENAFN) The petrochemical sector in the GCC registered an overall growth of about 11 percent (CAGR) over the past 10 years, driven by enhanced capacities across all major sub-sectors, Arab News reported.
The growth in the sector has been the result of the enhancements performed within the sector regarding the manufacturing of commodity polymers, such as PE and PP, as well as strong demand from China and other Asian countries.
A decade ago, the GCC accounted for about 11 percent of the total petrochemicals capacity in the world, but currently the capacity has doubled, making the GCC a major supplier through the presence of several major global chemical companies.
In terms of countries, Saudi Arabia leads the region’s plastics industry, producing an estimated 18.4 million tons per annum (tpa) in 2013, about 74.5 percent of the region’s plastics production capacity.
“Toward the end of the previous decade, large capacities were added across the petrochemicals value chain in the GCC. The base petrochemicals capacity saw an increase of 11 percent between 2003 and 2013. GCC countries continue to hold a significant position in the manufacture of basic petrochemicals such as ethylene, propylene and methanol,” Frost & Sullivan said in a new report.
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