According to a recent study by Saudi Arabia’s largest bank, NDB Capital, 2010 promises to be a prosperous year for the Petrochemical industry in the GCCs largest country. With 2009 Petrochem revenues at a near 20 year low, Saudi Arabia could see its SR11.6 billion turnover double to SR29 billion thanks to a combination of increased production and pricing as well as the commissioning of two major sites in 2010.
By 2015 Saudi Arabia are predicting that its income from the petrochemicals industry will have increased by nearly five times and they are hoping that this increase in revenues can be largely re-invested to ensure the re-diversification of industry in the region over the next decade.
In 2009 of the main players in the Petrochemicals industry, both Sipchem and Tasnee showed profits for the year. Yansab and Sahara are expected to show profits by the end of 2010. Saudi Kayan is not expected to show a profit margin until 2011 and Petrochem will then follow by 2012.
The projections cited in the report expect the income from these six companies to increase to approximately SR46.2 billion in 2011 and to reach SR62.1 billion by 2013.
Saudi Arabia as a whole will command an impressive 10% of the worlds petrochemical output, which will balloon to 110mn tonnes by 2015.
Good news across the Gulf
Petrochem giant, Exxon Mobil Corp., predicts that the next 10 years will see the Middle East accounting for 75% of the worlds petrochemical trade, with huge investments, the continued availability of natural resources, and increased global demand driving the industry in the GCC. This is positive news that promis new oil and gas jobs across the GCC.Andrew Reid, Staff Writer, Gulf Jobs Market News