Buoyed by a gradual economic recovery within the region and its largest export market, China; the GCC chemical industry is “well positioned” for long-term growth, said the Gulf Petrochemicals and Chemicals Association (GPCA).
Real growth in the GCC region is expected to be at 2.5% between 2021 and 2023, while China is targeting 6% growth in 2021.
“This may be a welcome development but comes with its own challenges, as the Asian country accelerates its move towards self-sufficiency in chemicals, which will reduce demand for imports from the GCC region,” GPCA noted.
“Securing a bright future for the GCC’s chemical industry will require bold leadership that adapts to the new trends emerging in the post-pandemic reality,” said speakers at the inaugural edition of the GPCA Leaders Forum held in Dubai.
Delivering the inaugural address at the forum, Yousef al-Benyan, chairman, GPCA and vice chairman and CEO, SABIC, said, “Industry leaders would need to change how they think about growth, innovation and their operating models.” He highlighted a major acceleration – during the pandemic – of already established trends such as digitalisation, a re-energised focus on sustainability and innovation, circular economy, the move towards decarbonsation and renewable energy, as well as the energy and materials transition among others.
The pandemic emphasised the power of collaboration, without which, the world would not be anywhere near global recovery, he remarked. The industry’s challenge now shifts to building a new ecosystem that allows us to thrive in the long run, al-Benyan added, expressing his confidence in the industry’s ability to emerge even stronger from this period of change.
Dr Abdulwahab al-Sadoun, secretary general, GPCA, added, “Chemical industry leaders must leverage the lessons learned from the Covid-19 pandemic and lead with a renewed sense of purpose to create value for its shareholders, costumers, society and our planet.
“The next decade will require companies to embrace people centricity, innovate and adopt agile decision making. To succeed, the industry would also need to drive customer collaboration and formulate effective partnerships. It would need to develop products that meet the future needs of our times and demonstrate leadership in the digital transformation.”