GPCA 2011 data show Saudi dominance in regional petrochemical industry
- Saudi Arabia: Wednesday, January 02 - 2013 at 12:09
- PRESS RELEASE
The Gulf Petrochemicals & Chemicals Association (GPCA) has released 2011 data which show Saudi Arabia is the largest petrochemical producer in the region, accounting for more than 67% of the total GCC petrochemicals capacity.
The data showed that value of Saudi Arabia's petrochemicals and chemicals exports rose by 40% in 2011 from a year earlier driven by higher prices and increasing demand. The kingdom shipped 35.2 million tons of petrochemicals and chemicals in 2011 which is 6% higher than in the previous year.
"The GCC petrochemicals sector is continuing to demonstrate strong growth in spite of challenging market conditions, especially deepening economic woes in Europe and other key markets. The GPCA annual data provide a comprehensive overview of the major sector developments in each of the Gulf states, and we are happy to announce its latest findings which are vital indicators of the performance of the regional petrochemicals market," said Dr. Abdulwahab Al-Sadoun, Secretary General of the GPCA.
He added: "We are optimistic about the coming year and aim to overcome uncertainties about the future growth through continued focus on technology, innovation and long-term partnerships."
Petrochemicals sector contributed 1.1% to Saudi GDP in 2011 and accounted for 11% of the manufacturing sector's contribution to the GDP, according to the GPCA findings. Saudi Arabia's Real GDP grew 7.1% in 2011 over the previous year.
GPCA data show that while the number of GCC nationals employed in the petrochemical sector grew by 11% last year, totalling 34,564 citizens, Saudi Arabia alone accounted for 88% of all nationals involved in the sector in the region.
Saudi Arabia's petrochemicals sector employed almost 58,000 people in 2011, representing 74% of the total number of employees in the GCC petrochemicals sector and 9% of the total number of employees in the Saudi manufacturing sector, according to GPCA.
Nationalisation of workforce in Saudi Arabia's petrochemical sector gained considerable momentum, reaching 52% in 2011 while the growth of nationals in the sector stood at 12% during the year, the findings showed.
Meanwhile, the GPCA data show that petrochemicals capacity is continuing to expand in the GCC. Regional capacity grew by 10% last year, reaching 121 million tons per annum, according to the report. Between 2007 and 2011 regional petrochemicals capacity expanded at 13% compounded annual growth rate (CAGR).
Petrochemicals accounted for 43% of GCC's non-oil export value in 2011, registering 33% growth over 2010. Quoting the National Statistical Departments of GCC States, the GPCA data says chemical and related products exported from the GCC equalled $44.7bn.
The data show that while the contribution of petrochemicals sector to the GCC GDP in 2011 was just 1.5%, the sector represented the fast growing part of the regional economy, creating additional jobs on yearly basis. In fact, employment in the sector grew by 15% over 2010 and reached 79,255 employees.
According to the GPCA data, contribution of petrochemicals was quite significant in the manufacturing sector, accounting for 17% of the manufacturing GDP in 2011. Besides, the GCC petrochemicals sector accounted for 6% of the total manufacturing workforce last year.
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