With a high-level delegation headed by His Excellency Dr. Ahmed Ali Al-Sheryan, Chairman of the Board of Directors and including Eng. Yasser Abdul Rahim Al-Abbasi, President, GPIC participated in the Gulf Petrochemicals and Chemicals Association (GPCA) annual forum. This year’s forum was held at Madinat Jumeirah in Dubai, from 7 to 9 December 2021.
Eng. Yasser Al-Abbasi stressed the importance of this annual forum, which the company is keen to actively participate in. The presence of such a distinguished and elite speakers has provided a unique opportunity for the delegation to network face to face, as it is the first ‘actual’ meeting to be held since the start of the pandemic. Mr. Alabbasi said that the petrochemical industry continues to in its strides to overcome crisis. The industry has shown unprecedented flexibility and fulfilled, despite all difficulties, its vital role in meeting the needs of society, and made a significant and direct contribution to meeting the requirements of the health sector. It has provided the healthcare industry with the equipment and materials required to combat the spread of the virus and the distribution of vaccines.
The president expressed his hope that the gradual economic recovery would continue, and thanked all those who organized this global forum and its interesting and highly topical sessions, stressing that it had been great to be able to attend this very important and strategic event in person.
The forum, which was held under the theme “Redefining, Reshaping, Reinventing”, saw the presence and participation of a variety of prominent speakers, including a selection of global and regional industry leaders from more than 500 companies in 50 countries. The forum also witnessed the delivery of specialized working papers that were presented, discussed and circulated during the four main sessions of the forum. The main sessions of the forum also addressed the opportunities and potential of green hydrogen and how the industry could develop its vision on environmental and social governance to achieve added value for the industry by increasing the flexibility and efficiency of supply chains and the latest technologies.
Gulf Petrochemicals and Chemicals Association discussed its hope for growth for the Gulf chemical sector during the years 2021 and 2022, in light of the recovery that the regional and global economy is currently witnessing.
At the Forum, the World Bank revealed its expectations that the economies of the Gulf Cooperation Council countries will achieve a total growth of 2.2% in 2021. This is supported by the global economic recovery expected to grow by 5.6% and the recovery of global demand for oil and global oil prices, especially with the rise in Brent crude prices in earlier in the month, reaching its highest level since October 2018, at 86.04 a barrel.
The Gulf Petrochemicals and Chemicals Association (GPCA) expects the chemicals market to continue to grow until 2022 in light of the strong economic and manufacturing activity in China, which is the largest export market for the Gulf Cooperation Council countries. However, it is also likely that delays and disruptions in supply chains will continue, which will lead to an increase in the cost of goods including some of the main raw materials used by the chemical industries. With the rise in oil prices, raw material prices are expected to remain high and thus the industry’s profit margins will decrease.