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29 March 2024

GCC petrochem firms must increase investments in R&D: GPCA

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By Staff

GCC petrochemical companies must increase their investment in research and development in order to remain competitive, urges the Gulf Petrochemicals & Chemicals Association (GPCA).

“Producing petrochemicals is a highly technical business dependent on science and technology,” said Dr. Abdulwahab Al Sadoun, Secretary General of the GPCA, who will receive more than 1,700 delegates from 50 countries at the 8th GPCA Annual Forum in Dubai from November 19-21.

“Investment in research and development and patent grants is a key indicator of national development and essential if the regional petrochemicals sector is to maintain its competitive edge over other producers.”

According to the latest GPCA research, the chemicals industry spent $49 billion on R&D last year, a 10% increase in spending compared with 2011. Investments from European and American companies accounted for nearly half of that amount. Additionally, the chemical industry filed nearly 200,000 patents in the same period.

GCC petrochemicals producers spent $380 million on R&D in 2012, less than 1% of the global industry total. In the same year, Gulf-based chemicals companies filed an estimated 750 patents or 0.4% of the overall number globally.

“These figures underscore the urgent need to increase spending on R&D in the Gulf states,” said Dr. Sadoun. “We must focus on research and development, and more importantly, develop strategies for innovation that will increase the product and cost competitiveness of the GCC petrochemicals sector.”

The global petrochemicals industry is in a state of flux, warns Dr. Sadoun. Shale gas developments in the United States may see the country become self-sufficient in energy by 2030.

“Innovation is no longer a luxury but an absolute necessity for the GCC petrochemicals industry,” he said. “Without it, the Gulf’s chemicals producers will not be able to compete with global players.”