GCC Petrochemical Companies’ Earnings Stand At USD 7.57bn Compared To Full Year 2017 Earnings Of USD 7.45bn, Higher By 2 Percent
Borouge, Khalifa Industrial Zone Abu Dhabi (KIZAD), National Industrialization Company (Tasnee) and Oman Oil Refineries and Petroleum Industries Company (Orpic) have announced their association with ArabPlast 2019, which is set to take place from 5th to 8th January at Dubai International Convention and Exhibition Centre. While Borouge will serve as a Strategic Partner, KIZAD as Support Sponsor, Tasnee will be the Regional Associate for the high-net worth event, whilst Orpic is the Gold Sponsor. This was announced in a press conference hosted today (Monday, 17 December, 2018) in Grand Hyatt in Dubai.
According to Ubhar Capital, shares in petrochemical companies in the Gulf Cooperation Council (GCC) performed better this year than in 2017 and the outlook looks decent for 2019. In 2018, earnings of GCC petrochemical companies stood at USD 7.57bn compared to full year 2017 earnings of USD 7.45bn, higher by 2 percent as reported by the Ubhar Capital report.
“GCC countries play a major role in meeting global demands related to plastics and petrochemicals. This has not only increased the productivity of the industry, but also strengthened its growth,” said Satish Khanna, General Manager, Al Fajer Information & Services, Dubai, organisers of ArabPlast 2019.
With the industry experiencing a steady growth, plans are already in place for a massive investment in the downstream sector, with more than $200bn expected to be ploughed into new refining and petrochemicals ventures in the GCC by 2025. According to a new report released by the Paris-based International Energy Agency (IEA), primary chemicals consumption will grow almost 60 per cent to 1 billion tonnes by 2050, where the Gulf will account for 12 per cent of all global high value-chemicals.
“The petrochemical sector has considerable room for growth, and the Gulf represents the world’s fastest growing markets. We are confident that having Borouge, Tasnee and Orpic associate with ArabPlast 2019, will add value to the event, as well as open doors for comprehensive cooperation and business opportunities for visitors and participants,” added Mr. Satish Khanna.
Borouge is a leading petrochemical company that provides innovative, value creating plastics solutions. Established in 1998 as a joint venture between the Abu Dhabi National Oil Company (ADNOC), one of the world’s major oil and gas companies, and Austria based Borealis, Borouge produces 4.5 million tonnes of polyethylene and polypropylene solutions per year for packaging, infrastructure, energy, mobility, agriculture and healthcare applications.
“We are glad to participate at ArabPlast this year as a Strategic Partner where we have the opportunity to meet with the industry leaders to exchange ideas and discuss the best ways to move our business ahead,” said Ahmed Al Shamsi, Senior Vice President Regional MEAE at Borouge. “As our participation at ArabPlast this year coincides with our 20th anniversary celebration, Borouge will be able to utilise this important platform to meet with our customers, partners and peers and showcase our innovative polyolefin solutions and emphasise the many opportunities they create, throughout the value chain.”
KIZAD, a part of Abu Dhabi Ports, is a major integrated trade, logistics, industrial and free zone hub, which serves companies from the aluminium industry, polymers and plastics industry, food processing, logistics, construction, and automotive sectors. With a key focus on polymers and plastics, KIZAD offers access to quality infrastructure, best in class regional and global connectivity, effective policies and broad access to raw materials from the likes of Borouge.
Tasnee is Saudi Arabia’s first joint-stock industrial company, fully owned by the private sector with the aim of advancing the economic diversification in Saudi Arabia. Similarly, Orpic is owned by the Government of the Sultanate of Oman and by Oman Oil Company SAOC, the commercial company wholly owned by the Government of the Sultanate of Oman created to pursue investment opportunities in the energy sector both inside and outside Oman.
At ArabPlast 2019, Borouge, Tasnee and Orpic will highlight their commitment to innovation by showcasing their latest products. In addition, the companies will offer visitors and interested participants an opportunity to discuss business models as well as share best practices for others to adopt at their respective organisations.
The press conference witnessed the presence of participants as Rahim K. Jamal, General Manager, Al Shihab Al Thahabi Tr. LLC and Hasan Al Dalou, Sales Manager, Adeka Al Ghurair Additives LLC.
In addition to the above, companies as ExxonMobil, Tawazon Chemical Company LLC, Enerplastics LLC, Basell International Trading FZE and Astra Polymers will also participate at ArabPlast 2019. This edition of ArabPlast will witness presence from of more than 900 companies from 30 countries including 14 national pavilions.
“ArabPlast is an important trade fair that focuses not just on ideas and learnings, but on implementation, which offers a real shift towards action. Having the big giants of the industry participate in the fair this year will not only add value to the event, but also lead to rewarding partnerships,” said Mr. Satish Khanna.
Samir Chaturvedi, CEO of KIZAD said: “Borouge is an important partner for KIZAD and together we are creating more in-country value for the UAE economy. This helps build a sustainable ecosystem for the development of polymer products, with a focus on leading the conversation around polymer sustainability. We look forward to exploring further collaboration together at ArabPlast 2019, a key event for UAE’s polymer converting industry.”
ArabPlast is the best platform to unveil new products, witness updates of the industry, open communication channels with industry peers, and meet global decision makers in the plastics, rubber and petrochemical industry. The international forum will offer participating companies a chance to establish their presence in the region, increase their exports and also open conversations with Gulf countries.
