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Abdulwahab Al-Sadoun, Secretary-General of the Gulf Petrochemicals and Chemicals Association (GPCA)
Abdulwahab Al-Sadoun, Secretary-General of the Gulf Petrochemicals and Chemicals Association (GPCA), said 2023 was not one of the best years for the petrochemical sector, though its sales exceeded $100 billion, and production was more than 155 million tons in the GCC region.
On the sidelines of the 17th Annual GPCA Forum held in Doha, Al-Sadoun told Argaam that there is an expansion in the volume of production and diversity in the economic base, indicating that this comes within plans to offer specialized products of higher value and less vulnerable to fluctuation in economic cycles.
The future of the petrochemical industry in the Gulf region is promising, as it manufactures commodities and is permanently exposed to economic cycles. In addition, the petrochemical industry's demand is affected by several factors, such as geopolitical conditions, China’s drive for self-sufficiency and the Russia-Ukraine war.
The global economic growth is slowing down, which affects demand, the official said, referring to an equation linking commodity demand to global economic growth.
Prices are determined by demand in the main markets, Al-Sadoun said, indicating that demand was weak in 2022 and 2023, which led to a decline in revenues and pressured profit margins.
The GCC petrochemical producers are better than their peers globally, with a high competitivity level.
The petrochemical industry is essential, and plastic products cannot be dispensed within the healthcare, medical services, food, packaging, and water sectors, as products are in demand worldwide, especially amid population growth.
Al-Saadoun said that the organization of the 17th Annual GPCA Forum in Qatar is part of a strategy to rotate the event to reach the largest number of decision-makers and the public who are interested in this strategic industry.
The attendance is increasing in terms of representation from all over the world, which enhances the importance of this event that has become a milestone in the petrochemical industry, Al-Saadoun concluded.
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