Total investment in the GCC chemicals industry has exceeded US$140bn in the first ten 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).
In a press statement, Dr Abdulwahab al Sadoun, secretary general of the 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 added, “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.”
With the theme, ‘Winning through Strategic Partnerships’, the 14th annual GPCA Forum, to be held during December 3-5 at the MadinatJumeirah, Dubai, 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 US$28bn in next ten years. H E Dr Mohammed bin Hamad al Rumhi, Oman’s Minister of Oil and Gas, and chairman of Oman Oil Company, will deliver the inaugural address at the GPCA Forum to provide an update on the future plans of Oman and the chemical industry’s strong contribution in regional growth.
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.