GCC chemical industry to sustain region’s non-oil economic growth
Dubai, United Arab Emirates, xx November 2017 – Data released in a new report by the Gulf Petrochemicals and Chemicals Association (GPCA) has highlighted the role of the chemical industry in diversifying the regional economy and accelerating non-oil economic growth. According to the report, in 2016 the GCC chemical industry contributed around $43.8 billion to the GCC economy, equal to almost one third of manufacturing value added and 29% of manufacturing revenue.
The UAE chemical industry’s contribution was the highest among all GCC states, accounting for 52% of manufacturing revenue. Off the back of significant investments over the past decade, the UAE almost doubled its share in overall regional capacity from 4.7% in 2006 to 8.5% in 2016.
Dr. Abdulwahab Al-Sadoun, Secretary General, GPCA, who met with key regional media during a roundtable, commented, “The past year has been a very positive time for the regional chemicals industry. The UAE industry’s growth has thrived post 2009 outpacing the overall GCC production index. This indicates the country’s aspirations to position the UAE as a key regional manufacturer of petrochemicals and fertilizers, while maintaining a healthy environment to sustain such aspirations. The following days of the Annual GPCA Forum will bring the entire sector together in unity and multiply our successes and learnings.”
“The sector’s contribution to economic growth has also been exemplary, which highlights the role of the industry as a key enabler in the journey towards economic diversification. For every job created in the industry, there are about three jobs created in other sectors. To sustain this growth, chemical output from the region has had to grow by 9.2% over the past decade,” he continued.
GCC chemicals output grew at the fastest pace in five years, with chemical production growing 8.5% from 2015 levels, reaching 158.8 million tons.
In 2016, the GCC chemical industry reported $77 billion in sales revenue, down 3% from the previous year as a result of changes in global petrochemical prices. The chemicals industry directly employs 152,100 people in the GCC, while investing $584 million in research and development.
The ‘2016 GCC Petrochemical and Chemical Industry Facts and Figures’ was released ahead of the 12thAnnual GPCA Forum taking place from 27-29 November 2017 at Madinat Jumeirah, Dubai.