GPCA ’24: GCC needs to formulate right partnerships – GPCA chief

MUSCAT (ICIS)–Gulf Cooperation Council (GCC) petrochemical players must formulate strategic international partnerships and invest in optimization and innovation to remain competitive, according to the secretary general of the Gulf Petrochemicals and Chemicals Association (GPCA).

“In the short term, the [GCC petrochemicals] industry needs to urgently adapt to shifting market dynamics and explore new opportunities within products and markets,” Abdulwahab Al Sadoun told ICIS ahead of the 18th Annual GPCA Forum in Muscat, Oman on 2-5 December.

“Formulating the right strategic partnerships, particularly with regards to the region’s top export market – China – will also be important in securing growth,” he said.

The GCC comprises six Middle Eastern countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.

The forum took place outside the UAE for the first time in 2022, when it was held in Riyadh, Saudi Arabia; in Doha, Qatar the following year; and in Muscat, Oman this year.

The GCC petrochemical industry’s performance is closely interlinked with the health of the global economy, including changes in consumer demand patterns, regulatory and policy updates and demand fluctuations in end markets, Al-Sadoun said.

“Aligning itself with key global objectives and ensuring their products and services provide meaningful solutions to the challenges we face will be vital in securing the industry’s future.”

Al-Sadoun said that the forum’s theme of “Industry’s Next Chapter: Driving Sustainable Advancement for Global Progress” was timely as the GCC petrochemicals industry now stands at a crossroads in the chemical industry’s evolution.

The world today is faced with “insurmountable challenges”, Al-Sadoun said.

Geopolitical turmoil, climate change, food insecurity, supply chain disruptions, and waste management are some of the megatrends impacting the chemical industry, society and planet, according to Al-Sadoun.

“As the external environment around us continues to be in a state of change, so does the chemical industry need to evolve apace…The chemical and petrochemical sector plays an instrumental role as a solutions provider to some of these key challenges,” he said.

“At the heart of our chemistry solutions lies the vision to contribute to global sustainable advancement – simultaneously enhancing our contributions to socio-economic prosperity, while at the same time preserving our planet and developing solutions that contribute to the energy transition and the circular economy.”

DUAL CHALLENGE
As the global population is projected to reach 9.7 billion by 2050, the industry will be faced with the dual challenge of meeting growing chemicals demand driven by an expanding, urbanized population, while at the same time meeting its obligations to decarbonize and preserve the environment, Al-Sadoun said.

“As global discussions intensify around renewable energy sources and low-carbon technologies, major GCC players have announced net-zero emissions goals and are investing in green technologies, such as hydrogen production and renewable energy integration.”

Advancing the circular economy is also an important factor in driving the sustainable transition, he said.

Notable innovations across the GCC industry include Kuwait producer EQUATE’s Viridis 25, the region’s first food-grade polyethylene terephthalate (PET) incorporating 25% chemically recycled material, reducing reliance on virgin PET, Al-Sadoun noted.

Similarly, UAE polymers major Borouge has advanced recyclability through mono-material laminates and flexible packaging solutions, while Saudi Arabia chemicals giant SABIC continues to lead with its certified circular polymers made from 100% recycled plastic.

Government-driven initiatives, such as Saudi Arabia’s Vision 2030 and the UAE’s Net Zero by 2050 Strategy, will also provide a supportive policy framework for industry-wide sustainability transitions, he noted.

“However, industry players are under no illusion that the road to sustainability is long and ridden with challenges,” Al-Sadoun said.

“It requires true collaboration, Public Private Partnerships (PPP) and the entire value chain to pull their weight to chart a viable pathway to sustainability,” he said.

“The journey to achieving big goals is often a series of small, consistent steps…And this is what the industry needs to focus on – taking impactful, consistent actions every day.”

Interview article and infographic by Nurluqman Suratman

Thumbnail image: GPCA secretary-general Abdulwahab Al-Sadoun (Source: GPCA)