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GCC chemical industry's investment hits $140bn in 2019 – GPCA

GCC chemical industry's investment hits $140bn in 2019 – GPCA
GCC chemical-related investment has exceeded $140 billion over 10 months

Mubasher: GCC chemical-related investment has exceeded $140 billion over the first ten months of 2019, led by consolidation, joint venture agreements and increased number of merger and acquisition (M&A) deals, according to recent estimates by the Gulf Petrochemicals and Chemicals Association (GPCA), the voice of the chemical industry in the Arabian Gulf region.

Those investments injected within the regional and international markets in the areas of refining, petrochemicals, distribution, storage supported by a wave of strategic partnerships reflect a strong year for M&A deals and a renewed drive by regional producers to consolidate their business.

They also build critical mass, diversify their business portfolio and expand access to high-growth markets.

On the other hand, the 14th edition of GPCA Forum that will take place at the Madinat Jumeirah, 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. 

The event will be held during the period between 3 and 5 December, and it will host 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.

The three-day forum, which is a leading platform for both global and regional producers to discuss and debate key challenges and opportunities, is expected to attract up to 2,100 international and regional chemical executives each year

Such key players 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.

“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,” Abdulwahab Al Sadoun, Secretary General, GPCA, commented.

He added that 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,” Al Sadoun concluded.