By Sam Bridge
Gulf Petrochemicals and Chemicals Association reveals figure ahead of major summit to be held in Dubai in December
GCC chemical related investment has exceeded $140 billion in the first 10 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).
The multi-billion-dollar investments in the areas of refining, petrochemicals, distribution, storage supported by a wave of strategic partnerships between regional players and multinational heavyweights indicate a strong year for M&A deals and a renewed drive by regional producers to consolidate their business, build critical mass, diversify their business portfolio and expand access to high-growth markets, the GPCA said.
The figure comes ahead of the 14th annual GPCA Forum held in December at the Madinat Jumeirah, Dubai, which 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.
In announcing its new organisational structure, Oman Oil Company and Orpic Group have pledged to invest $28 billion in next 10 years and OOC chairman Dr Mohammed bin Hamad Al Rumhi, also Minister of Oil and Gas, Oman, will deliver the inaugural address at the Forum.
Dr Abdulwahab Al-Sadoun, secretary general, 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.
"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.”
The GPCA is expected to attract over 2,100 international and regional chemical executives.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.