GCC chemical related investment has exceeded $140bn in the first ten months of 2019 led by consolidation, joint venture agreements and increased number of merger and acquisition (M&A) deals, according to estimates by the Gulf Petrochemicals and Chemicals Association (GPCA).
The multi-billion-dollar investments made both within the region and international markets in the areas of refining, petrochemicals, distribution, storage supported by a wave of strategic partnerships between regional players and multinational heavyweights, indicating a strong year for M&A deals and a renewed drive by regional producers to consolidate their business, build critical mass, diversify their business portfolio and expand access to high-growth markets.
In announcing their new organisational structure, Oman Oil Company and Orpic Group have pledged to invest $28bn in next 10 years. Dr. Mohammed bin Hamad Al Rumhi, minister of oil and gas, Oman, and chairman, OOC, will deliver the inaugural address at the GPCA Forum to provide an update on the future plans of Oman and the chemical industry’s strong contribution in regional growth.
Dr. Abdulwahab Al-Sadoun, secretary general, GPCA, commented, “The recent series of joint ventures, consolidation deals and acquisitions demonstrate the role of partnerships in the industry’s future strategic direction and continue to build on the region’s reputation as a reliable, long term partner in the global chemical arena. These developments will result in greater competitiveness in the regional chemical industry by enabling it to leverage economies of scale, accelerate innovation and greater market leadership. We can expect to see more of these large-scale alliances across the entire value chain, built on strong and stable platforms of leading-edge technologies between partners from across the board, combining resource and feedstock supply, product application know-how, and growth-market access. Partnerships that help chemical players stay agile and resilient and quickly adjust to changes in the worldwide economic picture will be increasingly sought after.”
