GPCA data highlight UAE petrochemicals capacity expansion in 2011
- United Arab Emirates: Wednesday, January 02 - 2013 at 11:57
- PRESS RELEASE
The Gulf Petrochemicals & Chemicals Association (GPCA) has released 2011 data which show that the UAE's petrochemicals capacity reached 6 million tons during the year, recording 26% compound annual growth rate between 2007 and 2011.
"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."
The findings show that the contribution of petrochemicals and chemicals to the non-oil export value increased 21% in 2011 compared to the previous year. However, the role of petrochemicals and chemicals in the UAE's non-oil exports is marginal representing 9% of the total non-oil export value in 2011 or $2.7bn.
In terms of volume, petrochemicals and chemicals accounted for 7% of the non-oil exports. The major chunk of these exports was from the Emirate of Abu Dhabi which at 24% is higher than the share of petrochemicals exports for the whole UAE.
According to the GPCA data, the UAE petrochemicals sector employed 8,000 people last year, representing 10% of the total employees in the sector across the GCC and 2% of the employees in the UAE manufacturing sector.
The UAE manufacturing sector employed 404,771 people in 2011, making 29% of the number of employees in the GCC manufacturing sector.
The data showed that Emiratisation reached 12% in the country's petrochemicals sector in 2011, which was 8% higher than in the manufacturing sector. It also revealed that the petrochemicals sector achieved 8% growth in the number of Emiratis in the workforce over the previous year.
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 equaled $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 component in the regional economy, creating additional jobs on yearly basis. In fact, employment in the sector grew by 15% over 2010 to 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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