According to a new GPCA publication, GCC Petrochemicals and Chemicals Facts and Figures 2011, to be released at next week’s 7th Annual GPCA Forum, the industry’s total workforce stood at 79,255 last year, equivalent to 6% of all employees in the region’s manufacturing sector. Nearly half of those jobs (44%) are accounted for by Gulf nationals.
“These are encouraging developments showing the contribution petrochemicals and chemicals is making to the diversification of local industry and career development for the indigenous workforce. But more needs to be done to sustain growth through further innovation and training, and that will be a strong message at our upcoming annual forum,” Dr Abdulwahab Al-Sadoun, Secretary General of the GPCA, said.
The positive news surrounding the sector’s expansion will be offset by concerns over falling natural gas prices in North America when more than 1,600 delegates representing the main petrochemicals producers in the Gulf and world markets meet in Dubai next Tuesday for the 7th Annual GPCA Forum.
Technological advancements in US shale gas production will be at the forefront of discussions and a major issue addressed by top industry speakers including Mohamed Al-Mady, Vice Chairman and CEO of SABIC and Chairman of the GPCA.
The price of natural gas in the United States and Canada has dropped to around $3 per million British thermal units (Btu) today from over $10 in mid-2008, according to the index Henry Hub. Falling prices abroad challenge the feedstock cost advantage of Gulf petrochemicals producers, currently experiencing rapid growth in output and sales.
Reflecting the global industry’s shifting economic landscape, the GPCA’s seventh annual gathering takes place on the theme ‘Sustaining competitiveness in a rapidly changing world’.
Saudi Arabia continues to set the pace for development in regional petrochemicals and chemicals, with 67% of the Gulf’s total output in 2011 of 120 million tons emanating from the kingdom.
It is also responsible for the bulk of sales, which for the region as a whole stood at $75.6 billion in 2011, a jump of 29% from $58.4 billion the previous year.
“Our new research will be launched at an opportune time, coinciding with our biggest event of the year. GCC Petrochemicals & Chemicals Industry Facts and Figures 2011 is a valuable measure of the performance of the industry, with important data on production, exports, sales, R&D, employment and future expansion plans. It quantifies the substantial achievements to date as well as highlighting critical areas of improvement,” Dr Al-Sadoun added.
The 7th Annual GPCA Forum will include a series of keynote speeches, panel discussions and workshops from November 27-29. Over 1,600 delegates from the GCC, Europe, USA, Brazil and Thailand are expected to attend the event held at the Madinat Jumeriah in Dubai.