Abu Dhabi-UAE: 09 October, 2011 – The petrochemical industry in the Middle East has seen a significant progressive rise due to the region’s infrastructure and feedstock advantage. Saleh Al Nazha, President and ChiefOperating Officer of TASNEE, a key speaker at Middle East Chemical Week 2011, recently participated in an interview with the World Refining Association and shared his wealth of experience on several opportunities in the industry.
Two of the key factors ensuring the consistent growth of the petrochemical industry are population growth and lifestyle. The United Nations recently estimated that the global population would increase to 8.9 billion by 2050. In addition, the lifestyles of people are improving with an immense demand for commodity materials.
Mr. Al Nazha, said: “In my opinion, economic growth is imminent because there is a specific emphasis on the trends that are being reflected by the largest spenders. The level of consumption in China has grown because the lifestyle of the Chinese has grown. Therefore, growth with respect to commodity products is likely to continue in this region.”He further continued to say: “There are likely to be lifestyle improvements for MENA residents as well. This means that the consumption of commodity products is expected to increase, inevitably contributing to growth. I don’t foresee that there will be a major dip in consumption and growth is likely to continue.”
A recent report by the National Commercial Bank stated that Saudi Arabia is becoming a leader in the petrochemical industry accounting for 50 per cent of the GCC’s 105.7million tonnes of total petrochemical capacity in 2009. The report also states that due to the recovery of oil prices and based on the monthly averages of the first half of 2011, the value of petrochemical exports is forecasted to reach US$26.52 billion by the end of 2011.
The strategic location of the Middle East, infrastructure, product availability, financial resources, soft loans and proximity to consumer markets provides a unique opportunity for Saudi Arabia and the Middle East region to develop its petrochemical and downstream sectors.
On being asked about what needs to happen for the GCC to be able to build a sustainable downstream industry, Mr. Al Nazha, said: “We have a major competitive advantage of being in close proximity to major consumer areas like India and China. Competitive pricing due to economies of scale and energy will allow us to be able to reach consumers in a cost effective way.”
Mr. Al Nazhaalso stated that the stabilization of oil prices is one of the key things that will have some impact on the petrochemicals sector in the coming two years.
A key development in Saudi Arabia is the downstream sector. A requirement today is that prior to receiving any gas allocation, companies need to have projects that can create employment so that resources within the region are locally becoming available.
TASNEE has been in existence since 1985 and has been involved in several downstream products including consumer goods like car batteries and plastic films, sheets and some forms of polycarbonates for household use. The company has consistently proven to be an industry leader as it was the first to bring the black polypropylene pipe, a material that has never been made in the region, foreseeing a potential for the usage of polyethylene pipes in all the water and soil systems. In addition, it was also the first company to introduce both acrylic acid and the superabsorbent polymer to the region.
Mr. Al Nazha will deliver a keynote presentation at the Middle East Chemical Week 2011 on Monday, 17 October, during the Petchem Arabia Conference titled ‘Workforce of the Future – Where is it coming from?’ Furthermore, he will participate in two high level panel discussions on ‘Maintaining the Attractiveness of the Middle East for Investment’ and ‘What are the Requirements for Investment and Collaboration in the GCC?’
Middle East Chemical Week 2011 will take place from 16 – 19 October 2011 at the Abu Dhabi National Exhibition Centre (ADNEC) in Abu Dhabi, UAE.