DCCI's Director General Inaugurates Chemical Logistics & Supply Chain Management in the Middle East 2005 Conference

The conference inauguration ceremony was attended by Mr. Sultan Majid Lootah, Director of Business Promotion at the Department of Trade and Industrial Development in the DCCI, Mr. Shashi Shekher, President of the Supply Chain and Logistics Group in the UAE, Mr. Martin Whittle, General Manager of the Chemical Distribution Institute in the UK, and a number of CEOs of supply companies and logistics experts in and outside the UAE.

Al Mutaiwee conducted the inaugural speech of the conference in which he highlighted the importance of organizing such international economic conferences in Dubai due to the significant role of the Middle East region, in developing the international petrochemical industries. He also stressed that the region has become the world's largest producer and supplier of petrochemicals.

"The value of petrochemical industries in the Middle East reached about US Dollar 33 billion during 2003/2004, with a regional rate of growth that stood at around 15 %, according to the recent studies," said Al Mutaiwee.

He pointed out that the cumulative total investment in the petrochemical sector in the Gulf region was estimated at US Dollar 40 billion, with another US Dollar 40 billion of new investments are expected by 2010. It is expected that the current pace of growth will continue in the future.

The DCCI's director general pointed out that the GCC countries offer the best current and future feed-stocks price advantage due to its strategic location on the major trade routes to Asia and other parts of the world.

He added that the GCC countries also offer an established industrial infrastructure, a well-trained and motivated workforce, stable currencies, financial incentives, proximity to growth markets, competitive shipping costs and government that actively encourage industrial expansion and foreign investments.

"The GCC countries offer excellent opportunities for investors interested in petrochemicals, and the supply chain is considered an important factor in the development of petrochemicals and other sorts of industries," said Al Mutaiwee.

He noted that the sharp increase in the volume of goods moving around within the region provides a solid basis for the development of the logistics industry. Without a well-developed logistics system to distribute goods to the global market, no matter how strong a region is in its production, production will not be feasible.

Al Mutaiwee said that the pressure on organizations to create and deliver the proper value-added products to customers is growing drastically in today's highly competitive and global market.

"In order to achieve an overall economic integration and bring into play the competitive edge of the region, it would be necessary to achieve a smooth flow of goods, in a way that the highly efficient logistics system becomes indispensable," he added.

Mr. Shashi Shekher, President of the Supply Chain and Logistics Group in the UAE, conducted another speech in the conference in which he talked about the global trends in supply chain management and logistics.

"We appreciate the DCCI's efforts in hosting such a significant economic gathering, mainly the Dubai Chamber's initiative in bringing together the top experts and CEOs of logistics and supply chain organizations from all over the world to discuss the factors of growth of this industry, in addition to the Chamber's outstanding role in supporting the local business community and investors to help them improve their businesses," Mr. Shakher added.