CHEM Middle East attracts global participation as Gulf becomes the world's most preferred investment destination

The show was inaugurated by HE Younis Al Khoury, Under Secretary , Ministry Of Finance in the presence of senior industry people, visiting technocrats, experts from the oil and gas industry, researchers, market analysts , senior officials of DWTC and media.

Organised by International Expo Consults (IEC), a multitude of international companies drawn from 16 countries are participating in the show to gain a foothold into the region that has emerged as world's most preferred investment destination as far as the petro-chemical industry is concerned because of the cost effective operations and the availability of feedstock.

Chem ME 2007, which happens to be the 11th edition of the show focuses on cutting-edge products, technologies and services related to the various petro-chemical industries. The 2007 event is showcasing products and technologies that reflect the diversification taking place in the industry itself.

According to Mr Falaknaz, President, International Expo Consults, "Middle East would be world's largest producer of basic chemicals, petrochemicals and plastics by 2010. Since 80 percent of the products would be exported, maximising quality output is a primary industry concern. This in turn is largely co-related to quality inputs both in terms of human expertise, industry infrastructure and the latest technology. Absence of indigenous expertise and technology. creates a need based demand that can only be outsourced. Therefore, Middle East makes for a lucrative market for countries and industry people capable of fulfilling these needs."

Chem Middle East is showcasing a comprehensive preview of paints and coatings, water treatment chemicals and other emerging technologies related to the industry. The main focus of the event is be safe operations in chemical and petro-chemical industries. The stupendous growth comes in the wake of the shifting centre of gravity of the global petrochemical industry to best cost areas, including the Gulf region.

With petrochemical facilities in Europe and the US, still the largest markets, facing closure or downsizing due to increasingly high prices and shortage of feedstock, the Gulf countries have emerged as the world's first choice for new facilities and best choice for investment in this industry.

In the Arabian Gulf region, the cumulative total investment in chemical and petrochemical sector amounted to $37 billion US dollars by the end of 2002. And another 40 billion dollars of new investments are expected by 2010. The projected growth of the Middle East petro- chemical industry stands at 15 percent per annum. While the growth is reflected across most of the Middle Eastern petro-chemical markets, it is most starkly visible in gas based petrochemicals like methanol and ethylene. Middle East is projected to produce 18 million metric tons of ethylene by 2010. This will account for 15 percent of total global capacity.

According to Mr. Abdul Rehman Falaknaz, President of International Expo Consults (IEC), the organizers of the trade show, " the decision of where to locate a new complex is an important one for petrochemical companies. The major staging ground in recent years has been the Middle East, and there seem to be equally valid reason to locate facilities in this area.

The Gulf countries already produce 30 of the most common intermediate petrochemical products representing seven per cent of world production, which will more than double to 20 per cent by 2010 with Saudi Arabia accounting for almost half that expansion".

The UAE is also investing heavily in its petrochemical industry, which will see its capacity increasing threefold, opening up opportunities in the downstream end-use processing sector. Encouraged by the success of various petrochemical ventures, Abu Dhabi is looking forward to expansion. Many other related projects are being planned or coming up in Ras Al Khaimah, Dubai and Sharjah.

Demand for petrochemical products will far exceed available supplies in the years ahead. It provides opportunities for expanding petrochemical industries in the GCC, especially because of competitive pricing. This is the reason why many companies are either on the road to expansion or are planning to do so.

The continuing expansion and growth in the Middle East has created a need for a more sophisticated logistics and supply chain processes to distribute more than 40 million tons of petrochemicals and plastics to over 70 countries on a plant-to-customer basis.

For the next 10 years at least the Middle East will continue to have an edge over others. Beyond that new technologies may change the way we produce polymers and petrochemicals.
The exhibition is showcasing national pavilions from Germany, UK and China and individual participations from all around the world. The event is expected to attract the largest gathering of leaders, industrial managers, technocrats, consultants, government officials, distributors, agents, buyers' delegations and industry related professionals.

Chem Middle East is held under the patronage of Dubai Chamber of Commerce & Industry (DCCI), Department of Economic Development and Department of Tourism and Commerce Marketing (DTCM). International Expo-Consults LLC, one of the leading trade exhibition organizers in the Middle East, is the technical organizer of the event.